If you’re in the market for a new used car, it’s important to understand what a clean title means versus what other permanent types of title brands mean. Before you buy your next used car, make sure the title is clean to avoid buying a car that is ineligible for a title and for the road.
A clean title means that there are no clouds over the ownership, liens, or permanent title brands. A car with a clean title has never been reported to an insurance company as wrecked, stolen, or in an accident. A clean title car has all of the original parts and has not been rebuilt or reconstructed. When you have a clean title in your name, you are free to sell, trade-in, paint it, or otherwise do what you want with the vehicle.
The term “clean” comes from the fact that you can simply read through the title and determine if anything is wrong with it. You might notice that there are no lienholders on the title or any other information on it other than the owner’s information and the vehicle’s description. This means that everything is good with your vehicle.
When buying a used car from a private seller, it’s important to look over the car title to ensure that there are no title brands or other clouds on the title. What are some common title brands?
A bonded title is actually not a permanent title brand. It is a temporary title brand that is acquired through a bonded title process. It is typically safe to purchase a car with a bonded title, but before that, make sure to get the story from the seller. After a period of 3-5 years, the bonded title brand can be removed to obtain a clean title.
A lien title, or lienholder title, means that the owner has a loan out on the vehicle that has not been paid or properly discharged. If the car title has a lien, the seller cannot legally sell the vehicle because the lienholder is technically the owner. Before a car with a lien title can be sold, the lien must be released by the lender and a clean title must be obtained by the seller to sign over.
A rebuilt or reconstructed title is given usually by an insurance company to a vehicle that has been substantially rebuilt. A vehicle with a rebuilt or reconstructed title can be sold, however, it will have additional inspection and insurance requirements with this type of title brand.
A salvage title is a title brand given to vehicles with an insurance claim loss. These types of losses include major damage, theft, or repair. If a vehicle incurs damage that is more than 60% of the value, it is often branded salvage by the insurance company. Sometimes, in certain states, salvage brand vehicles can go back on the road. However, the inspection process for these vehicles and repair requirements are quite strict and can be more expensive to fix up than the vehicle is worth.
A parts-only designation is typically found on a bill of sale or transfer form, not on a title. However, if a parts-only bill of sale is submitted for vehicle title processing, the title may be issued with a salvage brand or other cloud on the title.
When an insurance company has paid a claim for a vehicle and taken ownership from the insured, they have the option of processing the title as a certificate of destruction. In this case, the vehicle is intended to be destroyed and never to be used on the road or registered. It is unlikely that a vehicle with a certificate of destruction can ever be issued a valid title for transfer.
A vehicle with a certificate of destruction can sometimes appear to be in acceptable condition. The insurance company decides to prevent the car from road use to limit its liability in the event that the car is driven and is involved in an accident at a later date. If it is proven that an injury in an accident is because the car had some existing defect, the injured person could claim that the insurance company should not have let the car go back on the road.
Used cars with a clean title are your safest bet if you’re in the market for a used car, but only when you buy them from a trustworthy seller. While most states have laws in place regarding which brands of titles can be transferred over to new owners, you can never be too careful. It’s always best to know what you’re buying before purchasing it.
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At Car Titles, where we specialize in resolving a myriad of title challenges, around 30% of our cases revolve around motorcycles. Motorcycles often present unique title-related issues, and in this post, we’ll explore a recent and troubling incident involving BikeBandit, a prominent company in the motorcycle enthusiast community.
Motorcycle owners frequently encounter title problems, and this issue is more prevalent than what is typically observed with vehicles. In future videos, we’ll delve into the specific reasons behind this trend. However, today, our focus is on an intriguing article that could impact motorcycle enthusiasts across the community.
For avid motorcycle enthusiasts, BikeBandit is a familiar name—a go-to platform for motorcycle parts, performance upgrades, and replacement components. However, the community was jolted when the company filed for bankruptcy unexpectedly, leaving a staggering half a million dollars in unfulfilled customer orders.
What makes the BikeBandit story even more distressing is the revelation that the company continued to accept orders even after acknowledging its financial downfall. The bankruptcy filing took place in February, but reports suggest that the website stayed operational, luring unsuspecting customers into placing orders they would never receive.
The aftermath of BikeBandit’s bankruptcy exposes a dark practice known as bankruptcy fraud. This occurs when a financially distressed company, aware of its imminent closure, deceitfully continues to operate and accept payments. The consequences are dire, as customers remain unaware of the impending shutdown.
Given that a significant portion of our clients are passionate motorcycle enthusiasts, we want to hear from you. Have you recently ordered parts from BikeBandit, especially after February when they filed for bankruptcy? If your order predates February, did you face challenges receiving your purchased items? We’ve received reports from clients who ordered as far back as November and December, only to be met with unfulfilled promises and claims of items being on back order.
This incident, categorized as bankruptcy fraud, has the potential to disrupt the plans of motorcycle owners gearing up for the summer riding season. As the weather warms up, riders eagerly anticipate hitting the open road, and the BikeBandit bankruptcy may have cast a shadow over those plans.
In the comments section, we invite you to share your experiences and insights. Did you place an order with BikeBandit? Were you affected by their bankruptcy fraud? How has this incident impacted your ability to enjoy your motorcycle during the upcoming summer season? Your stories matter, and by sharing them, you contribute to a collective understanding of the challenges faced by the motorcycle community.
At Car Titles, we remain committed to assisting motorcycle owners in overcoming title-related hurdles. If you have questions or concerns about your motorcycle title or have been impacted by the BikeBandit bankruptcy, feel free to reach out. Together, we can navigate the twists and turns of the road ahead.
Is it legal to register a car without a title? The short answer is: sometimes.
A car title, or vehicle title, is a legal government document that assigns ownership of a specific vehicle. The proper way to transfer a car title is to have the prior original certificate of title signed over to you by the prior owner. The new owner can then take the title to the DMV and apply for a new title and registration in their name. But what happens when you’re missing the title?
In most states, you’ll need the properly assigned title to register a vehicle. The vehicle registration states who is authorized to operate the vehicle, while the title states who owns the vehicle as well as the title brand of the vehicle (if any). However, there are a few scenarios where you may be able to register a car without a title:
Many states have title regulations that do not allow for vehicles above a certain age to receive a title. Usually, this threshold is 20-30 years old at the time of purchase. In this case, a registration document will be your state’s equivalent to a title for your age of vehicle. There may be other scenarios where you can register a car without a title in your state, but these are the most common.
If you’ve recently purchased the vehicle, but simply lost the title, didn’t get it, or damaged it before it could be transferred, you’ll likely have to get a new title in your name before you can register the vehicle.
There are many methods to get a new title for a vehicle, all depend on the amount of ownership documentation you currently have.
Contact the prior owner to obtain the original certificate of title. If they don’t have it, request that they get a duplicate title and sign that over to you instead. Ownership records are considered private information and protected by the DMV. If you don’t have access to the prior owner information, CarTitles.com can help locate them and make contact.
Also known as the Vermont registration loophole, the Vermont registration process is a method used by out-of-state residents to get a title for a 15-year-old or older vehicle using a bill of sale. You’ll receive a registration document for your vehicle that you can then transfer to a title and registration in your state.
If your state accepts bonded titles, you can obtain a surety bond, or title bond, to secure your claim of ownership. If your state allows for this process, this is typically the most direct way to get a new title.
Typically you’ll need the signed original certificate of title to get a new title and registration for your car. Before using the title recovery method listed above, make sure that your vehicle is required and eligible to be titled in your state. If it’s your car, you deserve a title and registration in your name.
CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for your bonded title, Vermont registration process, prior owner contact, court-order title, or any other title recovery method provided.
Want to discuss your complex title problem with a title expert? Schedule a no-obligation, live consultation with a title expert through TelaClient.com!
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An auto auction is a facility that sells cars on behalf of the consignor. The consignors who are selling the vehicle. Most of the time the consignor is actually a dealership. Most of the larger auctions are dealer auctions.
The consignors are usually dealerships because they have access to large numbers of vehicles and they want to move them quickly so that they can make more room for new inventory.
When most people think of an auto auction, they think of a live public auction with an auctioneer. While there are still live auto auctions, many auction houses also hold online only auctions. Online auto auctions work the same way as traditional auctions. Bidders place their bids and the highest bidder wins the car. There are no physical inspections or test drives, so you need to be careful when buying at an online auction house.
Insurance auctions, like Copart and IAAI, auction off vehicles that have insurance claims. These auctions are generally held by the insurance company to recoup some of their losses due to the damaged vehicle. The vehicle may be a total loss or salvageable depending on its damage and condition.
The downside is that you never know what condition the vehicle will be in when you purchase it. You could find yourself buying a car that has been in an accident or is otherwise not roadworthy. It’s also important to note that some insurance companies require proof of purchase before they’ll let you take possession of the vehicle.
Dealer auctions, like Manheim and Adesa, auction off vehicles from dealerships. These auctions may either be dealer only or open to the public. If the auction is dealer-only, you must have a dealer license to participate.
Dealer auctions can be a great way for dealers to liquidate inventory on a regular basis. The public can get great deals on cars that are in good condition at these auctions. In some cases, you may even see new cars being sold at these auctions.
The federal government, military, and state police often hold auctions to get rid of their old vehicles. They’re usually old vehicles that they are no longer actively using. These cars can be auctioned off in a number of ways. You can go online and see what’s available in your area. In addition, you can also go to any local police or sheriff’s department and see if they have any available cars for sale.
One of the main reasons why these cars are sold is because they are no longer needed by law enforcement agencies. They may have been involved in accidents or have reached the end of their useful life. The police usually sell them off at very low prices so that someone else can continue using them as transportation vehicles or even as parts cars if necessary. Check with your local police department or state government, or check out Govdeals.com for examples of government auction listings.
Towing auctions are a way to get rid of vehicles that have been repossessed or towed. A towing company may use a public auction to get rid of cars, trucks, motorcycles, boats, and more that they’ve been hired to tow away.
When a towing company repossesses or tows a vehicle but it’s never picked up, they can go through the mechanic’s lien process to auction off the vehicle. These types of auctions are usually held by the local DMV or sheriff’s office.
The most common type of towing auction is when a car owner has defaulted on their loan and the bank hires a tow company to repossess their car. The bank then sells off the vehicle at an auction in an effort to recover some of its losses from having to take back the car in the first place.
Many insurance claim vehicles are sold with a salvage title. If it’s not too much work and you have the means to fix up the vehicle, you will need to get it inspected before you are able to get a title. Salvage inspections are notoriously strict. For example, say you live in Florida and you purchased a salvage vehicle that had minor damage but was last titled in New York. If your vehicle was given a salvage title in New York, it can only have a salvage inspection conducted in New York. No other state will inspect a New York salvage vehicle.
Additionally, you must provide the receipts for all of the parts used to fix the vehicle. If you don’t have the receipts or the parts are not up to standard, the vehicle will not pass inspection and you will not be able to obtain a title.
When purchasing any vehicle, more specifically from an insurance auction or towing auction, make sure that the title is not parts-only, certificate of destruction, or nonrepairable. These title brands are permanent and make the vehicle ineligible to ever obtain a title again. Meaning, that you have to junk the vehicle or sell it for parts, it can never go back on the road.
When buying from a dealer auction, dealers are required by law to get you a title. It states in their licensing that when they sell a vehicle, they have to provide a valid certificate of title. However, many dealer auctions include title waiver forms that waive the expectation of receiving a title at the time of purchase. Make sure you are not signing any title waivers before buying a vehicle!
Government and police auctions may provide you with title documentation that you’re not familiar with. Since these vehicles were originally intended for municipal use, they don’t have the same civilian title requirements. Check through the title documents provided and make sure that you have the title documents equivalent to the vehicle title.
Just like with any other vehicle purchase, make sure that you check the VIN before buying. Not only should you check the VIN to learn about the car’s history, but you should check the VIN to make sure it matches the vehicle and matches where it’s listed on other parts of the vehicle. If the VIN provided for the car doesn’t decode to the description the auction house provided, this should be a red flag of a permanent title brand or title problem.
Auction titles can be tricky. Unless you have the title in your hand at the time of purchase, your money is at risk. Before purchasing from an auction, ask the seller what ownership documentation will accompany the vehicle so you don’t get stuck with a car you can never put on the road.
CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for any title recovery method provided.
Are you a dealer that purchased a vehicle from an auction and need to obtain a replacement title? Get help at AuctionTitles.com.
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Junkyard and salvage auto auctions are great sources for finding cheap vehicles, but buyers beware that not all junk vehicles or junk parts can be titled. Even if the vehicle is in perfect condition, if the VIN is found in the NMVTIS database, you will never be able to title that vehicle.
The National Motor Vehicle Title Information System (NMVTIS) is the federal database that records every vehicle that is ineligible for a title. Once a vehicle’s VIN is registered with the NMVTIS, it is legally considered junk or parts and no title can be issued by any state for the vehicle. To enter the NMVTIS database, a junkyard or similar entity must deem the vehicle as junk and report the VIN to the NMVTIS. In 2010, the U.S. Department of Justice cracked down on underreporting from these entities in a memo stating that these entities are now required to report the VIN of junk vehicles within one month or pay $1,000 per vehicle that is not reported.
Fortunately, every DMV abides by this law and there are no exceptions. This law isn’t designed to prevent individuals from purchasing a vehicle from a junkyard or auto auction, but it is designed to protect buyers from unknowingly purchasing a vehicle with an invalid VIN. If you’ve purchased a vehicle from a junkyard or auto auction such as Copart or IAAI, make sure you perform a VIN check. We recommend checking the VIN of the vehicle prior to purchasing to ensure you have all the accurate information about your vehicle. The NMVTIS makes it simple to check your VIN here.
One of the most common calls we get at CarTitles.com is from customers who bought a vehicle from a junkyard that has an NMVTIS history. If you’ve got a junk vehicle or junk parts, or you’re looking to purchase one from an auction, we highly recommend checking the VIN against the NMVTIS database. If your VIN is in this database, there’s only one way to get a vehicle title. To title a junk vehicle, you must obtain a new VIN from the DMV as an assembled vehicle. For more resources and assistance in getting a title for a junk vehicle, check out JunkTitle.com.
Want to discuss your VIN problem or title problem with a title expert? Set up a no-obligation consultation with a title expert through TelaClient!
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