If you’re thinking about buying a kit car or an assembled vehicle, you’ll want to learn how to title it as well. Understanding the process of titling a kit car or an assembled vehicle is important before you commit to building a new ride. The laws for titling these vehicles vary from state to state and there may be special processes that need to be followed. Knowing about these processes will help you to complete the steps needed and avoid any potential delays.
Before registering your vehicle, however, it is important to know whether your vehicle is considered a kit car or an assembled vehicle as this will determine what documents are needed for registration.
A kit car is built by the owner or someone else. Kit cars are replicas of certain models of vehicles and are made in small numbers. The pieces are usually shipped to the buyer who assembles the vehicle or they can be purchased pre-assembled from the manufacturer. Vehicles that are made from kits, whether they are assembled by the owner or not, must be titled as a kit car or replica car.
An assembled vehicle is made when someone takes two or more separate vehicles and combines them into one using parts from each vehicle. Assembled vehicles also include rebuilt salvage vehicles where parts from other vehicles have been used to repair the original damaged vehicle after an accident.
The most important factor to consider when titling an assembled vehicle or a kit car is the VIN. Having a VIN is a prerequisite to getting a title. Before you apply for title and registration, you must have a VIN.
If the VIN is on one of the major components of the assembled vehicle such as the body or frame, you can use that VIN for your vehicle as long as it’s not logged in the NMVTIS database as junk or nonrepairable. If you don’t have the VIN from the body and frame or you have a kit car, you will have to apply for a new VIN from the DMV.
When you apply for a new VIN, this automatically triggers an inspection of your vehicle. Each state has specific requirements for kit cars and assembled vehicles. If your vehicle meets any of the general criteria, your vehicle may be denied a new VIN.
Kit cars are different from the conventional vehicles you drive every day. They are not regulated by the same standards as normal vehicles and have specific emission requirements. If you are rebuilding a kit car that is a replica, you only need to meet the safety and emissions standards of that model year. For example, if you purchase a 1956 ford model car kit, you only have to abide by the safety and emissions standards of that model year.
If your kit car is not similar to an existing vehicle model, then it needs to be inspected for emissions compliance at an approved smog check station after it is assembled and registered by the Department of Motor Vehicles (DMV).
If you are looking to get a kit car titled or even an assembled vehicle titled, the best advice is to do your research. Before you take any action, make sure to get your vehicle plans approved by your local DMV. Whether you bought the car from someone, built it yourself, or rebuilt it, if it’s your car, you deserve a title.
A lost car title can be a nightmare, especially if the incident that caused you to lose the title was a little bit more serious than dropping it in a puddle. If you previously had a car title in your name but that document is lost, stolen, or damaged, you may be eligible to file for a lost title. A lost title can be a headache and limits what you can do with your vehicle. Losing your title can be an anxiety-inducing situation, but don’t hit the panic button, this article will teach you the basics of how to file for a lost title.
If you were the last titled owner, you can apply for a duplicate title with your local DMV. To qualify for this process, you must submit a duplicate title application and you must have been the last titled owner of the vehicle. If you were not the last titled owner, you cannot receive a duplicate title and must obtain a title using a different method. The DMV keeps records of all titled owners and upon submission of your application, your local DMV will review their title records to validate your claim of ownership. Once this is verified, the DMV will send you your duplicate title.
The process and fees associated with filing for a duplicate title vary from state to state. However, it’s important to note that duplicate titles can only be issued in the states where they were last titled. For example, if you live in Louisiana but your car was last titled in Illinois, you can only get a duplicate title from Illinois, you won’t be eligible for a duplicate title in Louisiana. Most state DMVs allow for duplicate titles to be processed in person and via mail. Always refer to your local DMV website or call them if you have specific questions regarding the process in your state.
If you were not the last titled owner, you can file for a new title but you won’t be eligible to receive a duplicate title if the original was lost or stolen. The DMV will not issue a duplicate title to anyone other than the last titled owner. However, there are over 20 different methods to obtain a vehicle title depending on the situation and supporting documentation. Here are the top 3 ways to get a title when you were not the last titled owner:
This method involves contacting the prior owner of the vehicle and asking them if they will obtain a duplicate title and transfer it into your name. Prior owner transfer is one of the easiest ways to get a title, but only if the prior owner is willing to cooperate and you’re able to find them. If you don’t know the prior owner, you can submit a DPPA request to your state’s DMV for the motor vehicle record. The DMV may take up to a few months to process your request due to the legal nature of providing protected driver information. Not all states, such as Arkansas, allow for this type of request.
A bonded title is obtained by buying a bond, also known as a surety bond, from an insurance company. You take the bond to your local DMV along with all required documents. A surety bond secures the title and backs up your claim of ownership; it protects the state DMV from liability if there were to be a discrepancy of ownership.
The amount of the surety bond must be 1.5x the value of the vehicle. Each state may require a different book value for the surety bond amount to be based on, some states require the average trade-in value while others require the clean trade-in value. You don’t have to pay 1.5x the value of your vehicle, just a fraction of that cost. Most surety bonds for motor vehicle titles cost around $100-$150 but may be more with higher-valued vehicles.
If you have a vehicle that is 15 years old or older, you may be eligible for the Vermont title loophole. Vermont is a non-titling district, meaning they do not produce titles for vehicles over 15 years old. When a vehicle over 15 years old is registered in Vermont, the registration is equivalent to a title. Vehicle owners can then use that registration document as their proof of ownership and transfer it to a title in their state.
The best part about the Vermont loophole is that you don’t have to be a resident of Vermont or go to Vermont to use this method. Vermont is the only state that allows this process for out-of-state residents.
The best method for filing a car title depends on your circumstances. If you were the last titled owner in the DMV records, you can apply for a duplicate title. If you were not the last titled owner but lost the title before you could transfer it, you will need to pursue another method of title recovery. Regardless of the title recovery method, if it’s your car, you deserve to have your name on the title.
When using the Vermont title loophole, one common mistake applicants make is incorrectly calculating their sales tax amount. The reason for this error often lies in simple misreading and misunderstanding of NADA book values – which can lead to overpaying or underpaying on taxes.
The National Automobile Dealer’s Association (NADA) is the largest publisher of auto market information and provides value references to dealers across the country. The Vermont DMV statutes state that to determine the taxable cost of the vehicle, the applicant must use the NADA clean-trade in value of the vehicle. Other than the clean trade-in value, the NADA also references other values:
Reflects the value of a vehicle in rough condition such as significant mechanical defects, significant repairs required to restore reasonable operable condition, cosmetic damage that has considerable damage, or the vehicle will need significant repairs before resale.
Reflects the value of a vehicle in average condition. The vehicle is mechanically sound but has imperfections that need to be repaired before passing all necessary inspections. The vehicle has a clean title history but will need some repair/servicing before resale.
Reflects the value of the vehicle in clean condition. The vehicle has no mechanical defects and would easily pass all necessary inspections. The vehicle may have minor surface scratches and the interior has minimal soiling with all internal parks working. The vehicle has a clean title history and has minimal adjustments needed before resale.
Reflects the value of the vehicle in clean condition. The vehicle has no mechanical defects and would easily pass all necessary inspections. The vehicle may have minor surface scratches and the interior has minimal soiling with all internal parks working. The vehicle has a clean title history and no additional repairs or adjustments are needed before sale.
The NADA also states regarding each value definition, “Because individual vehicle condition varies greatly, users of NADAguides.com may need to make independent adjustments for actual vehicle condition”. Reference to valuation definitions as defined by the NADA found here
Once you’ve determined your NADA book value, you will use that figure to calculate the sales tax owed. Sales tax is always due at the time of registration. Calculating the amount of sales tax for using the Vermont title loophole can be done using this formula:
Formula: (NADA value) x (6%) = Sales Tax Due
Example: $5,000 value x 6% sales tax = $300 sales tax owed
If your sales tax is calculated incorrectly, it’s very likely that your application will be rejected. If it’s not rejected, but the sales tax amount is too low, you’ll receive a revised invoice for the remaining balance within 15 days. Your application will be refused by the Vermont DMV if you send in your application without the proper sales tax and registration fee. By submitting the application for title, you are providing evidence that you are liable for paying sales tax.
If your car’s value is significantly different from the book value due to damages or other conditions, an appraisal may be to your benefit. However, it’s important to consider the costs that will be incurred by the appraisal process. If the appraiser charges $400 but saves you $400 in taxes, you didn’t really save any money on the transaction. You won’t know how much you’ll save until the appraisal is complete and the appraiser still charges even if they bring down the value of the vehicle. We only recommend using the appraisal process if you have a very high-value vehicle or you have reason to believe that there is a significant difference between the book value and your vehicle’s value. Remember, you cannot register a parts-only vehicle using the Vermont title loophole. If the vehicle’s value is low due to it being mechanically inoperable, it is ineligible for this process.
An appraisal must be done by an approved Vermont licensed dealer and accompanied by the Vermont Dealer Appraisal Form. If you paid taxes and want to request a refund, you can send in a referral within 30 days of your payment. If you reside outside of Vermont, finding a licensed Vermont dealer could be a problem. However, there are many appraisers in other states who have nationwide appraisers licenses. Appraisers often travel to various states to appraise vehicles in specific situations so many are licensed nationally. Some states also have appraisal licenses that have reciprocity in Vermont.
The Vermont statutes are clear to use the NADA or comparable publication to determine the book value. If you can show that a particular book has more sales data that goes into a particular value than NADA, you may be able to use this alternate book value instead. If you want to make sure that your application gets processed the first time, use the NADA value. Don’t arbitrarily pick a low book or low value, your application will be rejected and you could face issues with the Vermont DMV. When submitting your application, always include a copy of the page of the book used for your valuation. If you feel that your book value is incorrect, contact an appraiser to discuss your options. Don’t write a letter to the Vermont DMV or call them to discuss the value, the Vermont DMV will only take the appraiser’s opinion of value as valid.
The Vermont title loophole is a great way for drivers to title their vehicle that is 15 years old or older. When pursuing this method to obtain a title, make sure to properly calculate your sales tax. Looking for more tips on using the Vermont title loophole? Check out this article listing the Top 5 Tips for Success Using the Vermont Title Loophole. For assistance with your paperwork, and to get started with this process, click here!
Want a CarTitles.com professional to do it for you?
For as little as $159 for most processes, we will save you the headache and prepare all of the car title paperwork needed to get you a new title. Simply choose the title recovery method you’d like to use and we’ll get started!
Select your title recovery method:
Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request Letter
The Vermont VIN verification process is an essential part of the Vermont title loophole. However, this step is commonly missed by most applicants. The VIN verification requirement was temporarily suspended for most vehicles, excluding motorcycles, during the beginning of the COVID-19 pandemic. Recently, the Vermont DMV has been increasingly requiring a VIN verification again as a requirement for the Vermont title loophole. If you’re looking to title your vehicle using the Vermont title loophole, learning the requirements of a Vermont VIN verification can help save significant time in the process.
A VIN (vehicle identification number) is a specific 17-character string of numbers and letters that uniquely identifies a specific vehicle. Every car has its own VIN, no two cars are exactly alike. The VIN is assigned to the vehicle when it’s manufactured. The VIN is typically stamped on a metal tag and is often located on the driver’s side of the dash, the door jamb, or under the hood. Most VINs are 17-characters, but this only began in 1981. Some vehicles manufactured before 1981 have a shorter 11-character VIN. This change in regulation grandfathered in vehicles pre-1981 and allows for those vehicles to still be titled, along with certain other vehicles with varying VIN length such as certain import vehicles.
https://cartitles.com/wp-content/uploads/2022/02/vermont-vin-verification-300×107.png
A VIN verification is a very important process that verifies that the VIN listed on a vehicle title is the same VIN listed on the physical vehicle. Many states have adopted a VIN verification policy when titling vehicles and this process is taken very seriously. The VIN verification can only be done by authorized individuals such as a DMV investigator, law enforcement, or another authorized agency. The reason that Vermont requires a VIN verification for the Vermont title loophole is that the vehicle is not required to physically be in Vermont. This means if the VIN wasn’t verified, the applicant can put any VIN on the official application and get a title for any vehicle. The VIN verification is put in place to protect the applicant and the DMV from fraudulent titles.
A VIN verification is an official process that involves a government official or representative inspecting the VIN of your vehicle for accuracy. If your application requires a VIN verification, this is not something that can be done online. It must be done in person with an authorized state agent.
A VIN check is a more informal process that involves checking your VIN against the NMVTIS database. Typically a VIN check is performed before purchasing a vehicle to ensure the vehicle has is not junk, salvage, non-repairable, or another permanent title brand. Both a VIN verification and a VIN check can reveal the same and similar findings, but a VIN verification requires the assistance of a government agent.
The NMVTIS is a database that contains information about salvage, junk, and other damage-titled vehicles. Vehicles in this database are not eligible for a title because they have received a title brand such as salvage or junk which deems them inoperable for use. The database is designed to protect consumers by allowing them to check the history of the vehicle they are intending to purchase or have already purchased.
The Vermont VIN verification for out-of-state residents using the Vermont title loophole has always been a requirement, simply on partial hold due to unprecedented times. As you are completing your application for the Vermont title loophole in 2022, we recommend including a VIN verification just in case. If you are submitting an application for a Vermont motorcycle title, you must complete a VIN verification. The Vermont VIN verification process ensures that the VIN on your title matches the VIN on your vehicle. Performing this step can save you significant time and help you get your Vermont title faster.
The process to get a bonded title in Arizona is typically easier than in most states. A bonded title is a type of title that is obtained using a surety bond when valid ownership documents are not available. If you purchased a car without a title, the prior owner didn’t sign it over to you, or you misplaced the prior title before it could be transferred into your name, you may be able to obtain a bonded title in Arizona.
To begin the process of a bonded title in Arizona, first, download the Arizona Department of Transportation (ADOT) Motor Vehicle Division (MVD) Bonded Title Application Vehicle (form 40-1001). Before proceeding with any other step of this process, you must first have your vehicle inspected by a certified inspector at an MVD field office, authorized third party, or law enforcement agency. This step inspects the printed vehicle identification number (VIN) to ensure it matches the VIN that is stamped on the inside of the vehicle. Depending on your vehicle or situation, your vehicle may be subject to additional inspection.
Bonded titles are a very common type of title designation. However, a bonded title is not the ideal situation according to the DMV. A bonded title is a form of title recovery, meaning something happened to that original vehicle title and ADOT wants to know what happened to it. In this section of your application, you will be required to provide an explanation of why you don’t have valid ownership documents or the prior title and why you are requesting to receive a bonded title. ADOT provides a few possible reasons for filing for a bonded title:
If none of those statements are applicable to your title situation, explain your scenario in the “other” section.
Whenever you’re applying for ownership without a prior title or ownership documents, the prior owner and any lienholders with security interests on the vehicle must be notified. As the applicant, it is your responsibility to contact the prior owner for valid title documentation and the lienholder for lien release if applicable. To request this information, you must submit a Motor Vehicle Record Request (form 46-4116), This form must be signed and notarized in order to be accepted by ADOT. This step is needed to ensure that there are no outstanding security interests on the vehicle that ADOT should be aware of before continuing the bonded title process. If there is a lienholder on file that cannot be contacted or a lien release is required but not returned by the lienholder, the bond process stops and becomes a judicial matter.
A surety bond is a financial instrument that protects ADOT in the event that someone else has a security interest in your vehicle. A surety bond, or title bond, is obtained by a bonding company, such as ProBonds.com. The bond amount is required to be 1.5x the average value of the vehicle or trailer.
Average value x 1.5 = Bond amount
$5,000 x 1.5 = $7,500
When purchasing a surety bond, you are not required to pay the bond amount. Most bonds cost a fraction of the bond amount and will typically range from a one-time payment of $100-$150 for most vehicles. The average value of your vehicle can be found using the NADA value or the value from another comparable book.
Once you have the Bonded Title Application completed, your vehicle inspected, applicant affidavit completed, notifications sent via certified mail, and you’ve purchased your surety bond at 1.5x the average value, return with all of these documents to your local MVD to obtain a title. If you wish to also register the vehicle, your vehicle may be subject to additional emissions testing.
If you are missing valid ownership documents and wish to obtain a title in Arizona, consider applying for a bonded title. This type of title designation is not permanent. After a few years, the bonded title designation will be removed from your title. Remember to carefully review your state’s laws and regulations regarding vehicle titles before proceeding with any method of title recovery.
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 Arizona bonded title or any other title recovery method provided.
Looking for a quote for your title bond? Get one at ProBonds.com!
https://cartitles.com/wp-content/uploads/2022/06/get-a-title-bond-quote-300×99.png
Tell us about your vehicle and we'll direct you to a title recovery method that matches your scenario.
"*" indicates required fields
