The Vermont DMV has played a key role in helping drivers across the country obtain titles for their vehicles. For many years, the Vermont registration process—also known as the Vermont title loophole—has allowed out-of-state residents to receive a vehicle title using this method. No other state offers this particular type of title process. The main requirements for using this title loophole include the vehicle being at least 15 years old and the owner providing a valid bill of sale.
The Vermont title loophole is only available for vehicles that are 15 years old or older. If your vehicle is a newer model, it is not eligible for the Vermont title loophole. Vermont is a non-titling district, meaning they do not produce titles for vehicles that are 15 years old or older. Instead, the registration that you receive for an older vehicle is equivalent to a title in the state of Vermont.
To use the Vermont title loophole, you do not have to physically take your vehicle to Vermont. However, you must meet all of the qualifications for an operable on-road vehicle and your vehicle cannot be in the NMVTIS database. The VIN verification process is used to determine if your vehicle meets all of these qualifications during an inspection.
The Vermont DMV does not require proof of insurance, but there is a section on the application that certifies that at the time of application, you have current insurance for the vehicle. It is a crime punishable by a fine of up to $1,000 and up to two years in jail for providing a false statement on this application.
The book value of a vehicle is the estimated price for which the vehicle could be sold. There are various methods of calculating value, including average value, clean trade-in, and others. For purposes of the Vermont title loophole, use clean trade-in value. When using the NADA book to calculate book value, look for your vehicle’s clean trade-in value rather than its retail cash price, because you will need to use that figure to apply for a title in Vermont. The Vermont DMV requires this method in its statutes but notes that not all vehicles are included in the NADA book. You can also check other sources such as Kelley Blue Book or Galves. Make sure to use an approved source and that the figure you assign to your vehicle reflects its condition accurately.
You must provide a valid bill of sale to provide proof of ownership to use the Vermont title loophole. The bill of sale is your receipt or proof that you purchased the vehicle. Your bill of sale can be typed or handwritten and must contain specific information about the transaction. For help with your bill of sale, check out our article How to Write a Bill of Sale.
One of the biggest mistakes applicants make when applying for vehicle registration is using section 4 of the VD-119 form to apply for a title rather than to apply for new registration. Remember, Vermont is a non-titling jurisdiction. In these situations, the registration is the equivalent to a title for that age of vehicle. We recommend that you type and double-check this form before submitting it to the Vermont DMV. Applications that are typed and complete are more likely to be approved and processed quicker than handwritten applications.
VIN verification is a physical inspection of a vehicle identification number (VIN) on the vehicle to confirm that it matches the VIN on the application. At the beginning of 2020, the VIN verification process was waived for all cars and trucks, except for motorcycles. In 2022, the Vermont VIN verification is being required again for all vehicles. The process of a VIN verification can be conducted by any state agency, such as state police, DMV investigators, and other authorized agencies. This does not have to be done in Vermont. For more information on the VIN verification process, check out our article Vermont VIN Verification For Title Loophole Explained.
When determining the tax on your vehicle in the state of Vermont, the procedure is to multiply the clean trade-in value of your vehicle by 6%. This percentage may not sound high, but it can vary depending on the value of your vehicle. For trucks over 10,100 lbs and for certain vehicles, the cap for taxes is $2,075. There is no way to get around paying taxes in Vermont. State statutes state that simply applying for registration is evidence you owe them taxes. For more information, check out our article How To Calculate Sales Tax for Vermont Title Loophole.
The Vermont registration fees are $48 for motorcycles and $76 for most vehicles and trucks under 6,000lbs. Heavier vehicles and some other types of vehicles may be subject to a higher registration fee that can be found here.
Once you’ve determined that your vehicle is eligible for the Vermont title loophole and all paperwork has been completed, you can submit your documents to the Vermont DMV for processing. This typically takes 4-6 weeks for most applications. Once the Vermont DMV approves your application, they’ll send you temporary plates and registration. With that new registration, you can use that as proof of ownership to get a title in lieu of a certificate of title at your local DMV.
The Vermont title loophole is a great way to get a title for an old vehicle using a bill of sale. Remember, before proceeding with this method, make sure it’s applicable in your jurisdiction and situation. For additional tips, check out our article Top 5 Tips for Using the Vermont Title Loophole. Need help preparing your paperwork? Have one of our title experts do it for you!
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If you are a private property owner in Alaska and you are in possession of an abandoned vehicle, you may be able to title it in your name. In most states, abandoned vehicles cannot be kept after being deemed abandoned. However, in Alaska, there is a specific abandoned vehicle process that can allow a private property owner to take ownership of the vehicle.
Abandoned vehicles are vehicles that have been left on public or 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.
In Alaska, a vehicle is considered abandoned when it is left unattended near a public road or highway for more than 48 hours, left unattended on private property for 24 hours, or left on other public property for more than 30 days.
Before filing the claim of ownership, make sure that your situation meets the definition of an abandoned vehicle as defined by Alaska Statute 28.11.020 Presumption of Abandonment. If your situation applies, the first step to the abandoned vehicle process in Alaska, and in all states, is to send an official DPPA request to the DMV for the release of motor vehicle records.
The Driver’s Privacy and Protection Act (DPPA) of 1994 prevents unauthorized access to personal information collected b state motor vehicle departments. This act was put in place to keep drivers safe from improper use of disclosed personal information to a third party. The DMV will take your DPPA request very seriously and oftentimes they may not release the information after the initial request. To request DPPA information from the state of Alaska, complete the Request for Research/Verification of Motor Vehicle Record (Form 851).
After you’ve received the contact information for the registered owner, you must notify them and any other interested parties by certified mail stating that you are claiming ownership of this vehicle that has been deemed abandoned. The notice must be made via registered or certified mail as defined by Alaska Statute 28.05.101 Giving Notice.
If the registered owner or interested parties do not respond within 30 days, you must provide proof that the notice was undeliverable, returned, or refused. Make sure you keep all mailing receipts when foregoing an abandoned vehicle process. After those 30 days with no claims of ownership, you may apply to have the vehicle title transferred to you as the property owner under Alaska Statute AS 28.11.025 Claim of Ownership by Private Property Owner.
Using the Claim of Ownership/Involuntary Lien form (Form 826), provide the following information on the vehicle:
To file for a claim of ownership, you must disclaim why you are claiming the lien. In this situation as a private property owner, make sure you’re describing the situation correctly as an abandoned vehicle. Note that you will not be able to sell or transfer the title until the vehicle is in your name. Then, have the form notarized by a public notary and submit it to the Alaska Division of Motor Vehicles and complete a state title application.
If you live in Alaska, you may be able to keep abandoned vehicles that you find on your property. The steps listed above are designed to provide a general overview of the abandoned vehicle process in Alaska and will work for most vehicles if executed properly. Most states aren’t “finder’s keepers” when it comes to abandoned vehicles, but if you’re in Alaska, you might just get lucky!
For property owners in Georgia, abandoned vehicles can be a big problem. If you’re a private property owner in Georgia and find yourself in possession of an abandoned vehicle, you may be able to have it removed from your property. However, if you want to keep the vehicle and get a title for it, you may want to consider using an alternate method of title recovery.
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.
According to the Magistrate Court of Fulton County, GA, a motor vehicle is to be considered abandoned if:
If you have an abandoned vehicle in Georgia on private property, the first step is to download and complete the form Notice of an Abandoned Vehicle and Request for Information (MV-603). The purpose of filing this form is to notify the Georgia MVD of an abandoned vehicle and to request the names and addresses of any known owners, lessors, lessees, and other security interest holders.
Georgia abandoned vehicle laws state that abandoned vehicles must be removed by a towing company or law enforcement agency. You cannot move an abandoned vehicle to store it on another property. If you file the form MV-603, you are requesting that the vehicle be removed from your property and no longer be your problem.
After the vehicle has been towed and removed from the property, the towing company or other authorized business must attempt to contact any owners, lessors, lessees, and other security interests to notify them of the abandoned vehicle. If the towing company or authorized business does not receive a response from any of the interested parties, they may file for a court order to render them eligible to sell the vehicle at a public auction.
You can get a title for an abandoned vehicle in Georgia, but not by filing for an abandoned vehicle. In order to title the abandoned vehicle, the towing company must file a court order to sell the vehicle at public auction and sell the vehicle to the highest bidder. Once the vehicle is sold, the buyer can then begin the process to apply for a title.
An abandoned vehicle cannot be issued a bonded title under Georgia law. To obtain a vehicle title for an abandoned vehicle purchased at auction, you must obtain a certified copy of the court order and go through the process of a court-ordered title. Additionally, the buyer must submit the following documents:
For more information on obtaining a title with a court order in Georgia, click here.
If you’ve ever been stuck with an abandoned vehicle on your property, you know it can be just as frustrating as it is annoying. Fortunately, if your situation allows, there are typically legal avenues to address the problem. If you are looking to have an abandoned vehicle removed from your property, this guide will start you off in the right direction.
Are you looking to file a mechanic’s lien or storage lien? An abandoned vehicle can be troublesome for auto repair shops and storage facilities. Not only are they often left with an unpaid bill from the customer, but they’re also often left with the loss of a vehicle. It can be frustrating and seemingly impossible to track down the owner of an abandoned vehicle; so what can be done? If you’re a licensed automotive repair shop or a storage facility, you may be eligible to file for a mechanic’s lien or storage lien to recover the costs.
A mechanic’s lien is a legal process that allows licensed automotive facilities to recover costs for repairing a vehicle. An individual who is not a licensed automotive facility or similar entity cannot file for a mechanic’s lien. The mechanic’s lien process is complex and should only be used when absolutely necessary; it is not an easy way to title the vehicle. If you are an authorized entity and need to file a mechanic’s lien, your first step should be to check your state’s timeline of activities that must be completed in order to correctly file the lien.
For example, Texas mechanics or repair shops have only a thirty-day window from when the charge first accrues to file mechanic’s lien paperwork. On or after 31 days, the shop can hold a sale or auction of the vehicle. If all of the proper paperwork has not been submitted within that time period, the mechanic’s lien may be invalid.
Besides its mentioned time constraints, a mechanic’s lien that is not done properly can bring financial penalties to the mechanic or repair shop. For many years, mechanics and auto repair shops will sometimes abuse the mechanic’s lien filing system by overbilling for work done in order to take ownership of a vehicle. States’ Departments of Motor Vehicles are going out of their way to crack down on bogus and wrongful mechanic’s liens. For example in Oregon, HB4087 states that if liens are not placed properly, the vehicle owner can bring an action against the shop to recover without demand $2,000 or an amount equivalent to twice the value of the vehicle plus the owner’s reasonable cost up to $20,000. Similarly in Texas, vehicle owners can bring action against a shop and recover up to $10,000 if a lien is improperly placed on their vehicle.
The Department of Motor Vehicles is working to make the process for disputing bogus mechanic’s liens more streamlined for vehicle owners. Mechanics should ensure that the mechanic’s lien process is absolutely necessary for each situation. Always attempt to contact the vehicle owner or prior owner before taking further action and be sure that you are familiar with your state’s timeline for mechanic’s liens.
A storage lien is a process afforded to an automotive storage facility or similar entity in order to recover costs of vehicle storage or disposal. Similar to mechanic’s liens, not all parties are eligible to file a storage lien. A storage facility or similar entity is one that is involved with storing, repairing, or otherwise caring for automotive vehicles. Each state has its own process to file a storage lien and the timeline varies depending on the geographic location.
For example, in California, if a vehicle is valued at $4,001 or more at a storage or self-service storage facility, the storage company has 30 days from when the lien arose (when the registered owner was billed) to file a lien on that vehicle. Therefore, if they do not meet that filing deadline, they will not be eligible to file a lien on that vehicle.
The laws governing abandoned vehicles vary from state to state. Any licensed automotive repair facility or storage facility in possession of an abandoned vehicle may be eligible to file a mechanic’s lien or storage lien; however, the procedures for doing so can be tricky and are subject to strict timelines and requirements. If you are a licensed automotive repair facility or storage facility looking for assistance in filing a mechanic’s lien, learn more about our process and how we can help here. Don’t let someone else’s abandoned vehicle remain your problem.
A bonded title is a vehicle title that is obtained by purchasing a surety bond. The vehicle title is provided to the vehicle owner with all the legal documents required by state law. A bonded title is needed when a vehicle owner doesn’t have any of the proper documentation available to obtain a title, usually due to a change in ownership. Bonded titles are available in 34 out of 50 US states, as certain states do not allow this method. You may need a bonded title if you have lost the prior title, damaged the prior title, or never received it.
In some cases, a different method of title recovery may be easier than obtaining a bonded title. A bonded title is needed when there is a significant lack of evidence of ownership. If you have a bill of sale and your vehicle is 15 years old or older, you might qualify for the Vermont title loophole (also known as the Bill of Sale Title method). Look into similar methods of title recovery first before proceeding with a bonded title.
The requirements to obtain a bonded title vary by state. The bonded title application form can be found online on the state’s Department of Motor Vehicles (DMV) website. Some states also require an inspection of your vehicle before you apply for a bonded title. This can include an emissions inspection, VIN verification, or other general inspection. Inspections will vary by state but are generally completed by licensed garages or other mechanics in your area.
In some cases, residents of non-bonded title states may be able to obtain a bonded title through Vermont. Bonded titles are a valid method of title recovery only in the following states:
A surety bond is basically an agreement between you, the surety company, and the state DMV that says you are the legal owner of the vehicle. The bond also states that if the DMV finds out that there is a discrepancy regarding the ownership of this vehicle, they will not be held liable. In other words, if someone comes forward stating that they own this car and you falsely applied for a bonded title, you will be responsible for reimbursing the DMV for any costs incurred in correcting this situation. The surety bond amount is typically required to be 1.5 times the book value of the vehicle. Most surety bonds cost around $100-$150 to obtain for average valued vehicles. You are not required to pay 1.5x the value of your vehicle, only a small fraction to secure the surety bond.
Once you’ve purchased your surety bond, you can submit your completed application to the DMV. Make sure to review all state regulations and have all inspections done prior to submitting your application. Applications that are incomplete will most likely be rejected.
The good news is you do have options to get a vehicle titled without the proper paperwork. You can apply for a bonded title on your car, which may or may not be successful depending on your state’s laws. To be successful using this method of title recovery, ensure that you learn about all applicable laws in your jurisdiction and abide by all inspection regulations. Even if you’re missing the proper paperwork, if it’s your car, you deserve a title.
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