A certificate of destruction, also known as a non-repairable vehicle title, is issued by an insurance company when a vehicle is no longer legal for road use and is intended for the vehicle to be destroyed. A certificate of destruction is not a salvage title or a junk title, it means that the only use for this vehicle is to destroy it. A certificate of destruction is issued because of liability. If the vehicle is on the road, it becomes a liability for the insurance company so to avoid this, the insurance company will issue a certificate of destruction.
The types of vehicles that may receive a certificate of destruction are those that have been damaged beyond repair from an accident or from natural disasters such as fire, flood, earthquake, or hailstorm. However, a vehicle that is seemingly in perfect condition can be issued a certificate of destruction if deemed necessary by the insurance company. The insurance company deems that it would be too costly to repair the vehicle and therefore will not cover repairs on it. The insurance company then takes ownership and issues the certificate of destruction.
Vehicles with a certificate of destruction are not legally allowed to be on the road, so how do these vehicles get sold? Most vehicles with a certificate of destruction will be sold at an insurance auto auction. Since they’re not road legal, the vehicles are often sold for parts.
Many people buy cars at salvage auto auctions for the purpose of rebuilding. They can then sell rebuilt cars at a profit or use them for themselves. When buying a wrecked car to rebuild, it’s important to know what you’re getting into. The cost of rebuilding may outweigh the value of the car, and there’s no guarantee that you’ll be able to find all the parts you need.
While the vehicle may be cheap if the vehicle has a certificate of destruction, no amount of title recovery can fix it to allow the vehicle on the road. The certificate of destruction is a permanent title brand and removing this brand is considered a federal crime. Even if you are able to sell the non-major component parts, it may not cover the full purchase price of the vehicle. Additionally, without a vehicle title, you cannot take the major component parts to a junkyard. After selling the minor parts, you may still have the chassis and frame that will need to be disposed of and this removal can be expensive.
Oftentimes, a vehicle with a certificate of destruction may go through multiple owners and turn into a game of “musical chairs” where someone purchases the vehicle and realizes that it has a certificate of destruction, then sells the vehicle to someone else without disclosing that fact. Then, that person goes through the same discovery and sells it again without a title and the cycle continues.
If you’ve purchased a vehicle with a certificate of destruction, the first question to ask is if this fact was disclosed at the time of your purchase. If the vehicle was purchased from a licensed auction house or auto dealer and they did not disclose at the time of purchase that this vehicle has a certificate of destruction, you can return the vehicle. If a vehicle has a certificate of destruction, this must be disclosed prior to purchase.
Similarly, if you’ve purchased a vehicle with a certificate of destruction from a curbstoner, also known as an unlicensed dealer, there are still actions you can take. Anyone who sells vehicles, whether it’s two vehicles or two hundred, must be licensed. If they don’t have a license and are operating in the capacity of a dealer without a license, you can report them to your local department of motor vehicles and law enforcement agency.
A certificate of destruction is a permanent title brand and what you can do with it will depend on your jurisdiction. For more information on the certificate of destruction, non-repairable titles, and VIN reassignment, check out JunkTitles.com.
If you’ve come to possess an abandoned vehicle in the state of Alabama, you may be able to get the vehicle titled in your name. Unlike some states, Alabama allows for the finder to buy the vehicle at a public auction. But first, there are certain steps that need to be taken before you can register the car in your name.
Abandoned vehicles are vehicles that have been left on private property by their owner with no further intentions to collect or dispose of the vehicle. If you know who owns the car or know how it got on the property, it is not considered to be an abandoned vehicle.
An abandoned vehicle in Alabama is defined as a motor vehicle that has been:
To begin the abandoned vehicle process in Alabama, within five days of the vehicle being considered abandoned, you must first electronically notify the Alabama DMV of the abandoned vehicle through the Unclaimed/Abandoned Vehicle Portal. This electronic report must include the following information:
*The date the vehicle was deemed abandoned is the most important date to remember for this process. The time requirements for this process will be determined by the date that is provided to the DMV.
Additionally in the first five days, the entity or person in possession of the abandoned vehicle must check the VIN against the National Motor Vehicle Title Information System (NMVTIS) to obtain the last titled state.
Once the Alabama DMV receives your full report, they will place a 45-60 day hold on the title. This means that for those 45-60 days, no one can transfer or make changes to the vehicle title.
Once you have obtained the last titled state, use the process that matches the last titled state:
Within five days of receiving this information from the appropriate motor vehicle agency, you must report the owner and lienholder information into the Unclaimed/Abandoned Vehicle Portal and send a notice of possession to the current owner and secured party. The notice of possession must be sent to the parties provided by the motor vehicle agency, information from other sources is not permitted. The notice must state that you are in possession of the abandoned vehicle and intend to sell it at a public auction. During these five days, the DMV will send an official notice of termination to the current owner and lienholder. The current owner and lienholders will have 30 days from the time of notification to come forward to claim the vehicle. If the current owner or lienholder claims the vehicle, you must report it in the Unclaimed/Abandoned Vehicle Portal as redeemed and this will end the process.
After the current owners and lienholders have been notified, you place a notice of public auction in the Unclaimed/Abandoned Vehicle Portal and notify the public through a circulating publication. A circulating publication would be considered a local newspaper, meaning you can’t just post it on the bulletin board of a laundromat. You must provide these notices at least 35 days prior to the scheduled auction date.
In your notice and publication, you must include the following:
After 35 days, the vehicle may be sold at a public auction. Once it’s sold, you must update the report in the Unclaimed/Abandoned Vehicle Portal. You’ll need to provide the following information in your report:
Anyone from the public can bid on the vehicle, including you as the entity in possession. If the bid is higher than the value of the vehicle, you must remit the additional balance to the county. You cannot keep excess proceeds from the public auction of an abandoned vehicle.
Once the vehicle is sold, the new owner must get the vehicle title put into their name immediately. Additionally, if you use this process, you must maintain the electronic record for a period of three years and be subject to audit if necessary.
Failure to follow any of these requirements and to properly record all events in the portal will result in forfeiture of all claims and liens on the vehicle, you’ll lose all rights to the vehicle. The portal is only designed for abandoned vehicles. Remember, a vehicle is not abandoned if you know where it came from. If you purchase a vehicle without a title from a private seller, you can’t use the abandoned vehicle title process because, in this process, you sign an affidavit that states you did not create this abandoned vehicle circumstance in order to obtain a title for a non-abandoned vehicle. This may be considered a felony and there are legal consequences for this action.
This process isn’t designed to fix a title problem, but rather to get rid of a vehicle in your way. If you’re looking to remove or title an abandoned vehicle in Alabama, this overview will help you get started on the process.
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There are many reasons why you’d want to check if a vehicle has a lien. If you bought the car, you should be able to find out if there is a lien. Unfortunately, if you’re not the titleholder, you may have problems finding out the lien status of your vehicle.
A lien is a legal claim on property or assets to ensure payment of an amount owed. With vehicles, this means that if someone has borrowed money from a bank or other lender to purchase their car, truck, or motorcycle, that lender will place a lien on the title until the debt is paid in full. Liens on vehicle titles are very common and can only be removed by submission of a vehicle lien release from the lienholder.
It’s difficult to check the lien status of a vehicle because liens are considered private banking information. The DMV is not supposed to give out this information to anyone other than the titleholder. This does not mean that you cannot get this information at all, but it does mean that it won’t be easy.
If you have access to the old title, check the front of the document for the lienholder’s name. If the vehicle has a lien, the lienholder will be listed as the owner or one of the owners on the front of the certificate of title.
Technically, they’re not supposed to give out any lien information. However, if you come prepared, you may be able to get the information you need. When going to the DMV, bring all supporting ownership documents such as a bill of sale or other documents. You’ll need to provide your DMV agent with a valid reason for requesting this information. Similarly, you can also submit a motor vehicle record request with your local DMV to obtain prior title information. It’s very unlikely that they will give you the amount of the lien, but they may be able to provide you with the name of the lienholder.
Once you’ve determined the lienholder by looking at the title or information from the DMV, you can begin the vehicle lien release process.
A lienholder is the only authorized agent to release a lien from the title. Research the address of your lienholder along with any other address locations you can find. By certified mail, send the lienholder the state’s lien release request form along with a letter of non-interest. A letter of non-interest is a document that states the lienholder no longer has any interest in pursuing the unpaid loan amount on the vehicle and can be sufficient to release the lien. It is important to start as early as possible, as sending incomplete documents may result in either a delay or denial of your request. Make sure that all portions of the forms are completed in their entirety and notarized if needed. The lienholder is more likely to return the forms quickly and without issue, if you provide them with the already completed forms only in need of a signature.
It’s important to find out if your vehicle has a lien on it, especially if you were not the original borrower. It may be difficult to find lien information, but the tips in this article will help you find success. If it’s your car, you deserve a clear title in your name.
A barn find is a great way to find a vehicle that has been discontinued. It could also be something you have found in the attic or basement of an older relative. A valuable barn find vehicle can be really exciting but may be difficult to title. If you are looking to apply for the title to your barn find yourself, here are some tips to help get you started.
A barn find is a vehicle that has been sitting in a barn or storage for some period of time. Many times these vehicles are not running and usually are not in good condition. The best way to get a title for a barn find vehicle is to locate the prior owner and have them sign over the title. However, if the vehicle has been in a barn or storage for decades, assuming you can locate the prior owner and the title may be a stretch.
If you are able to find the prior owner, ask them if they are willing to obtain a duplicate title. If they are, follow the duplicate title process for your state. Often this involves having the owner sign an application, which can often be found online on each state’s DMV website. Due to the age of the vehicle, some states may also require an odometer reading and a VIN inspection from a certified mechanic or someone from law enforcement who is authorized to perform such inspections.
It may be tough to get a duplicate, even if the prior owner is still living and has the old title. If the vehicle is abandoned for decades, it’s possible that the title has been erased. Oftentimes DMVs will purge their systems after 10-15 years of inactivity. The title could be lost after being left in a barn for decades. If you can’t track down any paperwork, try submitting a motor vehicle record request to your local DMV to see if they can retrieve the records. They may ask you to fill out some forms and submit an affidavit describing how the vehicle came into your possession.
In certain cases, you may be able to obtain a title for your barn find vehicle through the court system. To file for a court-ordered title, you must visit the county court in the county where you reside and file a case against the vehicle to ask the judge to grant you ownership of the vehicle. Once ownership is granted, you can take the court order to the DMV in exchange for a title.
A court-ordered title process isn’t an easy process, but it’s a very effective process. If you choose to pursue a court-ordered title, make sure to be aware of the laws in your county. Every county has a different procedure for a court-ordered title. For more information, check out our article The Court Ordered Title Process Explained.
If you want to keep a barn find vehicle and get a title for it in your name, do not say it’s an abandoned vehicle. In many cases, the designation of an abandoned vehicle will result in the towing and disposal of the vehicle. Most of the time you will not get to keep and title a vehicle that is considered abandoned.
However, this is possibly not the case in the state of Alaska. If you have a barn find vehicle on private property, Alaska is one of the few states that allows some abandoned vehicles to be titled. For more information, check out our article How To Title An Abandoned Vehicle In Alaska.
You don’t have to struggle with getting a title for your barn find vehicle. Be prepared with the steps that you will take and how to prepare your vehicle. Do your research and ensure that you’re having it correctly inspected, depending on the state you live in. If you try to be diligent with these things, then you should be well on your way to getting a title for that valuable classic car.
Selling a vehicle is simple, but it’s also a legal transfer of an asset. If you’re selling a vehicle, it’s important to know how to properly transfer the title. Knowing how to properly transfer the vehicle title is important when it comes to protecting yourself, as well as your vehicle’s next owner.
In most states, it’s illegal to sell or transfer ownership of a car without having a title that proves the seller is the legal owner of the vehicle. Selling a car without a title is considered fraud and can result in heavy fines and penalties. If you’re found guilty of selling a vehicle without a title, you may face jail time and hefty fines.
To avoid running afoul of local laws, make sure to get a title before selling your vehicle. The steps for getting a title for your car vary by state. However, you’ll need to apply for a duplicate title if the old one is lost or damaged. The only valid title is the original and undamaged certificate of title.
When applying for a duplicate title, you’ll likely need to provide proof of identity and insurance as well as other documentation depending on your state’s laws as well as pay a fee. Only the last titled owner of the vehicle is eligible to obtain a duplicate title. If you were not the last titled owner, you may need to obtain a title through a different method of title recovery. For more information, check out our article Lost Title? Here’s How to Replace Your Car Title.
Go to the DMV with your buyer when they transfer the title. If they don’t switch it over right away, it could create problems for you later because you’re still the legally titled owner. Your name and address are on that title and now that’s information they have access to. They may commit a crime in the vehicle and leave it, if your name is connected to the VIN, you’re going to be questioned. Or maybe they rack up traffic tickets that end up being attached to your license because you’re still the owner of the vehicle.
If you have a lien on your vehicle, you must get a vehicle lien release prior to transferring the title. If you have a lien on the title, you are not the title holder and are not authorized to transfer ownership. Selling a vehicle with a lien will create problems for the buyer. For more information, check out our article What Is A Vehicle Lien Release & How To Get One.
When selling a vehicle, take a photocopy of the title signed over and a copy of the buyer’s identification. You cannot use this to get a title in the future; only the original title is valid for this purpose. However, having made a photocopy, you have evidence that at some point you sold the vehicle, even though you are still shown as the titleholder.
To prove that the transaction took place, you’ll need to provide the seller with a bill of sale. The bill of sale is absolutely necessary, but it’s only a receipt and is not enough evidence to obtain a title on its own. For more tips, check out our article How to Write a Bill of Sale.
This occurs more frequently than you may think. Oftentimes the primary vehicle driver and the vehicle titleholder are not the same people, they may be a family member or spouse. Make sure that the person signing the title transfer is the prior owner. If there is more than one name listed on the title, everyone must sign the title transfer. The only person authorized to transfer ownership of the vehicle is the person or people listed on the title.
Selling a vehicle is a simple process, but it’s also a legal process, it’s a legal transfer of assets. You should make all efforts to make sure the title transfer is done correctly so it doesn’t come back to haunt you or cause problems for your buyer down the road.
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