Import Vehicle Title Problems

Importing and Titling Vehicles in Rhode Island
So can you title an imported vehicle? This new controversy in the state of Rhode Island gives you some insight as to what are the realities of titling a vehicle that’s been imported.

The Process of Importing a Vehicle
There’s two parts of an import vehicle titling. First, you have to get the car physically imported to the US. Now that doesn’t mean just physically brought here because a lot of times vehicles are brought into the US without being imported. How does that work? Well, if you’re going on vacation from Canada, Mexico, or even Europe, you can bring a car here, drive it around. It does not have to go through import, right? You’re not making it like a citizen, a domicile of the US. You’re just bringing it here to drive around and then you leave. But if you want it to be here for titling or ownership purposes, you actually have to go through the importation process.

Exemptions for Older Vehicles
Where it gets tricky with these older vehicles: if the vehicle’s older than 25 years old, you can skip some of the inspections at the import process like EPA and some DOT stuff. The problem is that doesn’t make it legal to title or register in all 50 states. Many states have requirements that the car has to have met the manufacturing criteria for that year that it was built in the US.

The Case of Japanese Mini Trucks
So these you see on the screen, these little Kai Japanese mini trucks, a lot of people like to buy these because they’re cheap, they’re cute, they can drive around town and they think they’re going to be clever because they’re more than 25 years old. The problem is most states don’t allow them on the road because they’re unsafe. They weren’t built to be on the road; they’re built for farm trucks or driving around little towns in Japan. People think, “Well, I can get an exemption for importing it, so it must be good.” Well, it’s good to import it, but it doesn’t mean that your state will allow you to title it.

State-Specific Requirements
And that goes for any imported car. You have to make sure that it’s legal to meet the standards of titling in your state. It probably has to go through inspection. And if you inspect it in your state and it doesn’t pass because the bumper is too low, it doesn’t have airbags, it doesn’t have a rear camera, it doesn’t have anti-lock brakes, any of the criteria that needed for that year have to be met for that vehicle. And you might say, “Well, gee, if I had a 1969 Camaro, it doesn’t have airbags.” Well, in 1969, in the US, that was not a requirement. So keeping that in mind, if you’re going to import a vehicle, make sure that you’re certain that the criteria and construction of that vehicle meets the standards of being eligible to title and register in your state.

Changing Regulations and Compliance
Also be aware that many states are changing the rules. This is a good example right here. If you look at what it says on the screenshot, it says owners must turn in registration to DMV. What does that mean? Well, in Rhode Island, there were 30 of these little Kai vehicles that were previously titled and Rhode Island realized, “No, wait a minute, that was a mistake. These cars should not be on our roads. They’re unsafe.” So they’re pulling the registration. So anytime you import a vehicle that was not originally manufactured for the US market, be aware that it could be pulled at a later date.

Seeking Professional Guidance
If you do have questions about registering, importing, or titling a non-US vehicle, you can click the link below and arrange a consultation.

Certificate Of Destruction Non Repairable Junk Titles

Buying Parts-Only Vehicles
You see a lot of these vehicles being sold at certain salvage auctions, Copart, or IAA, and it says parts only on the listing. Sometimes it’ll say parts only on the title or on your paperwork. What can you do with this vehicle? What’s going on with parts only?

Understanding “Parts Only” Designation
What parts only means is that the insurance company or the seller of the vehicle has determined that they don’t want this to be sold as an actual vehicle; they want it to be sold as, guess what, parts only. So what you’re supposed to do is buy this vehicle and take it apart. If you look at this vehicle, you have a hood, you have wheels, you have glass, and presumably you have an engine, transmission, drive line, interior parts, computers, and airbags. If you add all that up, it’s probably worth more than the car. Now you’d have the labor cost and the inconvenience of having to dismantle the vehicle, but it’s worth more. And that’s where a lot of these buyers at Copart and IAA are making their fortunes by taking vehicles apart.

What If You Already Bought a “Parts Only” Vehicle?
But what if you come across one or you already bought one that’s parts only? What can you do? Well, you have to be very careful because if it is listed as parts-only and it’s registered in the United States title system as a parts-only vehicle, all 50 states are aware of it. If you try to get a title, they’ll find out about it, and they won’t issue a title for a parts-only vehicle.

Exporting a “Parts Only” Vehicle
Can you export it? Well, maybe you can, but technically, the export rules for CBP (Customs and Border Protection) require that a parts-only vehicle be dismantled into major component parts in order to be shipped out of the country. So if you put a vehicle in your container and you don’t have a title for it, or if the title is parts only, they’re going to want to make sure that vehicle is dismantled. It can’t go out in one piece. Now, we do have a lot of export clients that are finding that that’s not 100% enforced, but if it is enforced and you now have your vehicle in a container, now you have to take that container out of the bonding area, dismantle it, put it back in the container, and ship it. And that could cost a lot of money, and more and more sections of CBP—Savannah, Houston, and Port Elizabeth—are starting to be more cognizant of this and crack down on it.

Reconstructing a “Parts Only” Vehicle
So what if you want to put it back on the road? Well, there are a few ways you can do that, and we’ll talk about it briefly in this video. But if you want more information, you can click the link below, and you can even schedule a live one-on-one consultation with a title agent (myself) to go over the options for your particular vehicle. Make sure you have your VIN number handy if you have a consultation. But one of the things you can do is reconstruct it into an assembled vehicle or a kit car. You can also use it as a major component part for another vehicle that does not have a parts-only designation.

Risks of Title Washing
But beware of schemes that claim to flip the car among a few different states very quickly. If you catch one of them off guard, they’ll give you a title that doesn’t say parts only. Because there’s a few schemes you can do to flip it around five or six different states in a very particular order very quickly, they won’t catch it right away, and they’ll give you a title. The problem is that eventually that title will be revoked when they find out. And if it’s found that you did that flipping scheme (it’s called title washing), it’s a federal felony. And if they see that you’ve done that, they can actually prosecute you for it. So be aware that some people try to do that. It’s less effective now than it used to be because most of the states are now all digital. But if you do get tempted to do that, or if somebody offers to do that for you, be aware that it could get you into some big trouble.

Legal Advice and Conclusion
So you may want to avoid that, and if you do sell a vehicle that was Parts only under a clean title, now that’s also a misrepresentation. So if you’re going to do something like that, get good legal advice from an attorney. So if the guys with the badges and the three letters on their coat show up at your door, you can say, “My attorney told me it’s okay,” because if not, you’re going to get into trouble. Parts-only vehicles are probably better off left alone, no matter how cheap they are, because by the time you go through the trouble of fixing them and doing everything, you’re not going to make that much money. You’ll make more money if you just take it apart and sell all the parts on Craigslist. Again, if you do want more information on parts-only vehicles, you can click the link below to get some written information or to schedule a consultation with a certified title agent.

Fake Car Title Agent Arrested For Fraud

Here’s another example of how vehicle titles are ripe for fraud: anytime you have somebody who’s trying to do something that’s not quite legal, or a loophole or some kind of backdoor method, it’s going to come back and bite you.

The fraudulent title scam
Here’s a story about a clerk at a title agency that was arrested for processing $3 million of fraudulent titles. What she was doing was filing fake paperwork to get titles for vehicles that some of her partners in crime allegedly were getting for cars that they weren’t supposed to have. They were buying these cars without titles; they were getting these cars with no titles, and they were having this title scam to get them titles from the DMV official titles that were improper.

The Value of a Vehicle Title
And you know, getting a title for a vehicle, you know it’s a certificate; it’s a document, but it’s more than just a piece of paper; it’s representing the value of that vehicle, so even if you have a vehicle that’s worth $10,000, that title is like a $10,000 check. Whoever has it in their name owns that vehicle now, so if you can find a way to scam your way of getting a title, you now have a free car, and if it’s done improperly, eventually it’s going to catch up to you, and this is a perfectly good example.

The Consequences of the Scam
This scam allegedly went on for years. Um, this person now has 36 felony charges, a multi-million dollar scheme, dozens of stolen vehicles, and what’s going to happen is that all those titles will be revoked. Anyone else involved in the process is going to be prosecuted.

The Importance of Legal Title Acquisition
So make sure if you’re getting a title for a vehicle, you’re using a proper method of getting a title. You’re not doing something illegal, and if somebody else is doing the method for you, make sure you understand it. Make sure you know what’s being done and if it’s legal. A lot of methods of getting a title are illegal, and it’s going to eventually, um, bite you in the foot if it turns out that you got a title under those circumstances.

Final Advice
So when it happens, people are being prosecuted for it. Make sure you’re aware of how your title’s being obtained, and if it’s your car, you deserve to have a title. There’s a way to do it. It might take a little more work to do it the right way, but you’re not going to run into legal or financial problems down the road.

How To: Certificate of Destruction Junk Title Problems

Clients often find themselves puzzled by the presence of a Certificate of Destruction (CoD) on vehicles purchased from various platforms. Let’s delve into the specifics of what a COD entails and why it could potentially lead to complications for buyers.

The Role of Insurance Companies
Insurance companies issue CODs for vehicles they’ve paid out claims on, be it due to collisions, floods, thefts, or other incidents. This designation serves a legal purpose, relieving the insurer of liability and preventing the vehicle from being put back on the road.

National Motor Vehicle Title Information System (NMVTIS)
The VIN of a vehicle with a COD is registered in the NMVTIS, a national database accessible to all DMVs across the US and its territories. This ensures that the vehicle’s status as non-reparable is recognized nationwide.

Legal Implications and Insurance Industry Trends
Insurance companies shifted to CoDs to mitigate potential lawsuits stemming from salvaged vehicles returning to the road. This measure protects them from liability claims related to accidents or malfunctions.

Options for Owners of CoD Vehicles: Despite the limitations imposed by a COD, owners have a few avenues to explore:

• Reconstruction: transforming the vehicle into an assembled vehicle or a kit car.
• Sale in Unrestricted Jurisdictions: Selling the vehicle in areas where non-reparable titles are recognized.
• Component Usage: Utilizing the vehicle’s major components in eligible VIN-numbered vehicles.

Legal Pitfalls to Avoid
Attempting to alter the VIN or engage in title washing are serious offenses with legal ramifications. It’s crucial to refrain from such activities to prevent legal trouble down the line.

Seeking professional assistance
For a comprehensive analysis of your specific vehicle’s situation, consider scheduling a consultation with a certified title agent. This allows for a tailored assessment of your options and potential pathways forward.

Conclusion
Navigating the complexities of CoD vehicles requires careful consideration of their legal implications and available alternatives. By understanding the nuances of CoDs and seeking professional guidance, owners can make informed decisions regarding their vehicles’ futures.

Import Vehicle Titles Revoked Kei Truck Drama

Okay, here we go again with these Japanese Kai mini trucks, and there’s a lot of controversy and misunderstandings about them, but even beyond these trucks, even if you’re looking at an import vehicle, an older vehicle, or a gray market vehicle, some of the rules and procedures work the same way, so even if you’re not looking at one of these mini trucks, you want to know how these rules work.

The Drama with Importing Vehicles
So here is the drama with these: there is a standing rule with the portation of vehicles that if a vehicle’s older than 25 years old, it is exempt from certain customs regulations. The EPA has regulations right so you can get it through customs and import the truck, which makes it legal to import. What a lot of people don’t realize is that just because you can import, it doesn’t mean that you’re going to be allowed to drive, register, or title it; it just means the federal government will let you bring it through the port. These trucks are designed in Japan to be used mostly for farm work and, uh, rural work, not to be used on major highways.

State Regulations and Issues
Here’s what’s happening in many states:. Many states are realizing that these vehicles do not conform to standards for road use, so even states that allowed them for a while are now pulling the titles and registrations. This example comes from R.I., where they have sent out notices to owners of these vehicles. Even if you already had it titled and registered, you have to cancel it and bring it back. State of Main did it a couple years ago. Many other states are doing the same thing. So if you’re looking to buy one of these, even if your state currently allows it, be aware that at some point they may undo it. It’s technically a state-by-state issue.

Federal Influence
However, the federal government is also influencing this because they have a stake in road and highway use. They give millions of dollars in highway funds and, uh, road district fulfillment to various jurisdictions, and if they find out that a state or a county is allowing unsafe vehicles on the road, they can pull back their highway money, and you might say, Well, it’s not unsafe. Well, according to the federal government, it doesn’t meet the standards of a road use vehicle.

Use and Specifications of Mini Trucks
and this also applies to other types of import vehicles. According to the article, the mini trucks are generally used for things like farmwork; they weigh 1,500 lb., that’s very light, can only reach speeds of 75, and that’s on a good day downhill with a tailwind.

DMV Stance on Mini Trucks
Here’s the big issue: the DMV says these Kai vehicles were never manufactured in compliance with Federal Motor Vehicle Safety Standards. They’re allowed to be imported if they’re more than 25 years old, but whether they’re allowed on public highways is up to individual states. Right now, it may be up to the state, but the state, when they make their rules go by federal guidelines, trucks previously registered with the DMV for years, and now they’re have to turn in the registrations and keep the vehicles off the road.

Comparison to Other Antique Vehicles
Other antique vehicles are grandfathered because they met our safety standards at the time they were manufactured. That’s the key. You can buy a 194 Ford and it doesn’t meet the current regulations, but it did meet the regulations in 1940. If one of these vehicles, let’s say, is a 1990, it doesn’t meet the standards now, but it didn’t meet the standards in 1990 either, so that’s where the gray area comes in.

Future of Kai Vehicles
Look, we talked to DMV commissioner departments all over the country many times a year. In reality, it’s likely that within the next 3 to 5 years, all these vehicles are going to be withdrawn from eligibility, and it’s not going to be possible to title or register these vehicles, and even if you have one, you have to give it back.

Other import vehicles
where this also comes into play is if you purchase another import vehicle we had a uh a client that purchased an opal from Europe an opal sold sold cars in the US but this was one that was manufactured for the European market in I believe the late ’70s early 80s and that particular European car did not meet the standards for the US market at that time so in order to get it titled or registered this owner would have had to reconfigure it and meet meet the standards some of those standards are impossible to meet if the vehicle’s too narrow or it doesn’t have the right size frame or too light so be aware that when you’re purchasing a vehicle that was not originally manufactured for the US market you have to be cautious that you may either initially or down the road not be able to retain a title or registration for it.