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. The abandoned vehicle process varies by state, but all abandoned vehicle processes have similar legal requirements. Additionally, in some cases, the abandoned vehicle process may not provide the ideal outcome.
If you are a private property owner who has been left with an abandoned vehicle on your property, it can be incredibly stressful and overwhelming to have to deal with the necessary steps to get rid of the vehicle. This blog discusses general steps to take if you have discovered an abandoned vehicle on your property and what other options for title recovery may be available.
Each of the 50 US states has a different process to file for an abandoned vehicle. With each state having different legal requirements, it’s important to contact an attorney that specializes in vehicle title laws in your state. This article is not legal advice, we recommend speaking to an attorney prior to beginning your abandoned vehicle process.
What are your intentions with this abandoned vehicle? Abandoned vehicles aren’t necessarily a “finder’s keepers” type of situation. In most states, if you file an abandoned vehicle, you’re intending for the vehicle to be towed and disposed of. Many abandoned vehicle title processes do not allow for the property owner to take possession of the vehicle. If you’re planning to keep the vehicle and possess it or sell it, consider other title options such as a bonded title or a court-ordered title.
The Driver’s Privacy Protection Act (DPPA) is a federal statute that protects driver information from being public records. According to the DPPA, to obtain personal driving information, an individual or organization must submit an official form to the state DMV requesting specific information. To obtain information protected by the DPPA, you must disclose your reasoning in your official request. Just because the DMV receives your official request form doesn’t mean they will give out the information. The information you obtain from the DPPA request can help you locate the prior owner and will assist in the title or removal process. Not all states allow for this information to be requested. Arkansas and Wyoming do not allow for DPPA information to be provided about other individuals, in these states you can only request your own driving and vehicle records.
In some states, the property owner must sign an affidavit that states the vehicle has not moved from the original location in which it was abandoned. By moving the vehicle, you may be inadvertently invalidating the abandoned vehicle process.
In certain cases after all other methods of title recovery have been exhausted or if your state requires it, you may need to have a judgment against the prior owner of the vehicle. Certain businesses such as storage and towing companies may be able to charge storage fees for the abandoned vehicle, but private property owners are not permitted to do the same. Private property owners can use the court process to obtain a judgment against the owner for abandoning the vehicle on their property.
The abandoned vehicle process is a complicated legal process. If you are a private property owner with an abandoned vehicle of any kind whether it’s a truck, car, motorhome, or another type of vehicle, you may be able to file for an abandoned vehicle and have it removed from your property. In most states, an abandoned vehicle title is not a regular method of obtaining a title. When choosing your method of title recovery, first decide the desired outcome of the situation. Do you want to keep the vehicle? If so, try a bonded title or court-ordered title. Do you want to dispose of the vehicle? An abandoned title process may be right for you. Always seek professional or legal advice before proceeding with your title recovery method.
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A bonded title is a type of vehicle title that is acquired using a surety bond when the vehicle owner does not have valid prior title documents or those documents have been damaged. Typically, a vehicle title is signed over to the new owner by the prior titleholder when purchasing the vehicle. Unfortunately, not all sellers deliver on their promise of a title. If you live in Texas and you are trying to obtain a new vehicle title without valid prior title documents, you may be able to obtain a bonded title.
The following reasons may render your vehicle ineligible for a Texas bonded title:
Vehicles that have a lien or security interest on the title are not eligible for a Texas bonded title unless one of the following conditions is met:
Vehicles that fall into one of these categories are not eligible for a Texas bonded title. To check if your vehicle is non-repairable, junk, or salvage, perform a VIN check through the NMVTIS database. Incomplete cars are vehicles that are inoperable or disassembled. Vehicles that are disassembled or incomplete are not eligible for a Texas bonded title.
If your vehicle is eligible for a bonded title, the next step is to begin the application process. Complete the Bonded Title Application or Tax Collector Hearing Statement of Fact (VTR-130-SOF) with the following information:
This section of the Texas bonded title application is very important. Why are you requesting a bonded title? Why don’t you have the prior title? Oftentimes the answer is simply “I bought the vehicle online and never got a title” or “I lost the title document”. The Texas DMV wants to make sure that you’re requesting a bonded title in good faith.
If your vehicle meets the criteria described on page two of the bonded title application as a rebuilt or newly assembled vehicle, you may be required to submit additional documents. Be sure to review the instructions prior to submitting to the DMV. Once completing this application, submit it to the Texas DMV along with a processing fee of $15.00 and any evidence of ownership you have such as a bill of sale or canceled check.
Texas has a specific method to determine the value of your vehicle. Using the Standard Presumptive Value (SPV) on the Texas DMV website, input your vehicle’s information to obtain the SPV. If your vehicle’s value cannot be determined through the SPV, your vehicle will need to receive an appraisal from a licensed dealer or insurance adjuster.
Once your application has been approved and you’d like to proceed with the bonded title, you can purchase your surety bond. The amount for the bond will be determined by your vehicle’s SPV value or appraisal value. To purchase your surety bond, visit a surety bond agency such as ProBonds.com. The surety bond amount for a Texas title bond is 1.5x the value of the vehicle. However, this doesn’t mean you’ll have to pay thousands of dollars just to obtain a surety bond. Most surety bonds cost around $100-$150 to purchase, the surety bond company backs the DMV with the remainder of the amount. The reason for the surety bond is to protect the DMV in the situation where there is a discrepancy of ownership over your vehicle.
After being approved for a Texas bonded title and purchasing your surety bond at 1.5x the value of the vehicle, gather all of the documents and submit them to the county tax assessor-collector’s office for the application to be processed or a hearing to be held. Include the Application for Texas Title and/or Registration (130-U), both pages of the Bonded Title Application (VTR-130-SOF), Form VTR 130ND issued to you by the Texas DMV stating the amount of your bond, and the Certificate of Title Surety Bond (VTR-130-SB). If your vehicle requires an inspection or VIN certification, be sure to review and include those necessary documents as well.
A Texas bonded title is a great alternative when vehicle owners are unable to provide prior title documents. This article is not a full list of instructions, if your vehicle meets rebuilt, kit, or otherwise reconstructed criteria, there may be additional steps you need to take. Before proceeding with a Texas bonded title, make sure to contact your local Texas DMV to determine eligibility.
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 Texas bonded title or any other title recovery method provided.
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Have you heard of the famous Vermont title loophole? The Vermont title loophole, also known as the Vermont registration process, is a method for non-residents to obtain a title for a vehicle that is 15 years old or older using a bill of sale as proof of ownership. Vermont residents are able to use this method as well, but Vermont is the only state to allow non-residents to apply for a title in their state.
Vermont is a non-titling jurisdiction, meaning that the state of Vermont does not produce titles for vehicles 15 years old or older. This means that vehicles 15 years old or older are only eligible to receive a registration, which in the state of Vermont would be the equivalent to a vehicle title. In most US states, you cannot apply for a title without having the old title signed over to you. If you’re unable to find the prior owner or they’ve lost the title, this could pose problems in your application process in your state. By using the Vermont title loophole, a vehicle owner can apply for registration in Vermont and if approved, use that registration document as proof of ownership, aka a vehicle title, and transfer it to a title in your state.
According to the Vermont DMV, one of the biggest mistakes that applicants make when applying is selecting “New Title” rather than “New Registration” in section 4 of the VD-119 form. Remember, Vermont is a non-titling jurisdiction for vehicles 15 years or older. In these situations, the registration is the equivalent to a title for that age of vehicle. We recommend that this form is typed and double-checked for accuracy and completeness 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.
A VIN verification is a process where an authorized agent physically inspects the vehicle’s VIN to confirm that the VIN on the vehicle matches the VIN on the application. If your vehicle is a motorcycle, a VIN verification is always required. Due to COVID, some cars, trucks, and other non-motorcycle vehicles have been able to apply without the extra VIN verification. However, in 2022 this is changing and the Vermont DMV will soon require this as a step for all applicants. A VIN verification can be conducted by an authorized state agency such as state police, a DMV investigator, or another authorized agency. For non-motorcycle applications, we recommend that you include a VIN verification if you are able to do so. Motorcycle applications will always require a VIN verification.
The book value of your vehicle is about how much your vehicle is worth in the market today. There are different values such as average value, clean trade-in, and so on. When using the Vermont title loophole, look for your vehicle’s clean trade-in value. The Vermont DMV first recommends using the NADA book value first in their statutes, but not all vehicles will be featured in this book. If your vehicle is not in the NADA book, there are some other comparable places you can find the book value such as Kelly Blue Book and Galves. Make sure that the book you are using is approved by the Vermont DMV and that the value you assign to your vehicle is correct. Always choose the lowest possible value for your vehicle because the higher the value, the more you will pay in taxes. If you can, attach a copy of the book value to your application. If the value is too low, the Vermont DMV will send you an invoice for the remaining balance. If it’s too high, they may simply agree with the value or may send you a refund depending on the difference in figures.
The amount of sales tax owed is often a sore subject. The amount of sales tax owed on most vehicles is calculated using the clean trade-in book value of your vehicle multiplied by 6%. This might not sound like a high percentage, but depending on your vehicle’s value, the amount owed in taxes may be higher or lower than anticipated. For trucks over 10,100 lbs and for certain vehicles, the taxes are capped at $2,075. There’s not a way to get around paying taxes. Vermont statutes state that by simply applying for a registration, that is evidence that you owe them taxes.
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.
To use the Vermont title loophole, you don’t have to ever take your vehicle physically to Vermont. However, this doesn’t mean that you can get a title for any vehicle or parts using this method. The vehicle must meet all of the qualifications of an operable on-road vehicle and cannot be in the NMVTIS database. The VIN verification process is used to assist this requirement as the verifier can check the VIN against the NMVTIS database upon inspection.
The Vermont DMV doesn’t require proof of insurance, however, on the application, there is a section that certifies that at the time of application, you have current insurance for the vehicle. It is a crime and punishable by a $1,000 fine and up to two years in jail for providing a false statement on this application.
The Vermont title loophole is a great way for vehicle owners to get a title for an older vehicle and a bill of sale. Every state recognizes the Vermont registration as the equivalent to a certificate of title and should have no problem transferring the title to your state. We recommend that when applying to transfer the registration to a title in your state that you bring along the title informational bulletin to assist the DMV agent with the process if they are not familiar. Obtaining a vehicle title is an important step in keeping your assets safe. If it’s your car, you deserve a title with your name on it.
If you bought a car without a title, or you’re unsure if your vehicle has a title, it’s important to get this resolved immediately. In most states, like Texas, it is illegal to operate a motor vehicle without a certificate of title. Additionally, some vehicles that were repaired are not eligible for a title. Vehicles that have parts from a nonrepairable or floor damaged vehicle are not ever eligible for a title, even if the vehicle runs just fine. What is a vehicle title and why is it needed?
A vehicle title is a document produced by a government agency that assigned ownership of a motor vehicle. The certificate of title is only produced by a government agency and cannot be obtained from other sources. Obtaining a certificate of title in your name doesn’t just protect your vehicle, but it protects you from someone fraudulently applying for your vehicle’s title. If it’s your vehicle, your name should be on the title. When a vehicle is sold, the seller is responsible for signing over the title. If the seller cannot produce the title at the time of purchase, this should be a red flag. Sellers that are not willing to at least show you the physical title at the time of purchase may have something to hide about the vehicle. While this isn’t always the case, it’s possible that the seller is trying to sell you a vehicle that they know is ineligible for a title.
Some vehicles are simply ineligible for a title. Vehicles that are ineligible for a title are those that have been recorded in the National Motor Vehicle Title Information System (NMVTIS) as junk, parts-only, or non-repairable. This doesn’t just include whole vehicles, but parts that are from a junk or non-repairable vehicle have serial numbers that are also found in the NMVTIS. Each state has slightly different rules that dictate which vehicles are eligible for a title, here are some common scenarios where your vehicle may be ineligible for a title:
If your vehicle doesn’t have a title, the first step is to check your VIN against the NMVTIS database. If your VIN is found in the database, your vehicle is ineligible for a title. Depending on your situation and the vehicle condition, you may be eligible to reassign a VIN to the vehicle after inspection. Websites like JunkTitles.com specialize in helping vehicle owners reassign a VIN to ineligible vehicles.
If your vehicle is not found in the NMVTIS database and all of the parts are eligible for a title, the first step would be to contact the seller for them to transfer the title to your name. If the prior owner is not located or willing, there are additional methods to obtain a legal title. Your vehicle will likely require an inspection by a government agency like the DMV or state police, but it’s not impossible to get a title in this situation. Depending on the paperwork you have for your vehicle already, you may be able to obtain a bonded title with a surety bond or use an out-of-state title method like the Vermont title loophole. When purchasing a vehicle, a best practice is to always get the title signed over at the time of purchase. Make sure to do your due diligence when purchasing a vehicle to avoid being left with a pile of metal and no vehicle title.
A salvage title is a permanent title designation that is assigned when a vehicle has sustained a high amount of damage. Some states allow for these titles to be converted into rebuilt titles, but they will always have a salvage designation.
Once a vehicle has received a salvage title, it cannot be returned to its previous status. It can only be sold to a dealer or another individual as salvage. A rebuilt title is often issued when the car has been restored and found to be road-worthy.
A salvage title is almost always issued by an insurance company. Each state has its own threshold of damages that must take place to designate a salvage title. Some states require 50% of the total book value in repairs, but some up to 100%. If a vehicle has repairs that accumulate to more than this threshold, it can be issued a salvage title. If the insurance company has paid a total loss claim, more than likely it’s because the vehicle crossed the percent of damage threshold.
In other words, if you were in an accident and your vehicle was totaled out because it would cost more than 80% of its value to repair it, you may have received a salvage title from your insurance company. It’s also possible that you had no collision coverage and could not afford to repair the vehicle, so you received a salvage title from the Department of Motor Vehicles (DMV) instead.
Many insurance companies are beginning to issue nonrepairable, junk, and parts-only titles to vehicles they used to deem as salvage. The DMV and insurance companies are cracking down on curbstoning. Curbstoning is an illegal scheme where an unlicensed dealer will buy cars from auction, say they were a personal vehicle, poorly repair the vehicle, then resell it to a new owner who has no idea of the title history. It’s not illegal to repair a salvage vehicle, but it is illegal to claim the proper repairs were made to meet state requirements when this is not true.
In order for the title on a salvage or rebuilt car to be road-safe, all states require a professional inspection of the vehicle. This can be done by certified mechanics or through the DMV. The mechanic will go through every part of the vehicle, make sure it meets state requirements and road safety standards, and note any problems that need fixing.
If you have a salvage vehicle, first check the NMVTIS database to make sure it’s salvage and not nonrepairable, junk, or parts-only. Check the requirements in your state to learn about the repair process. If you’re an auto repair or rebuilding shop, make sure to follow all state regulations for repairing salvage title vehicles. In many cases these vehicles can be repaired and put back on the road with no problems; however, if improperly repaired and put back on the road they may present significant safety issues.
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