Understanding Salvage TitlesHave you been purchasing vehicles with salvage titles at Copart or IAA, or perhaps through a broker like Bidmas Auto Bid Buy? Salvage titles signify that an insurance company has paid a total loss claim on a vehicle, usually due to theft, collision, or flooding. Unlike typical insurance claims for repairs, salvage titles indicate that the insurance company now owns the vehicle.
Auctioning salvage vehiclesInsurance companies, reluctant to keep these salvaged vehicles, sell them through auctions such as Copart or IAA. While many of these vehicles can be repaired and put back on the road, insurance companies are increasingly turning away from salvage titles to avoid potential liabilities associated with accidents involving previously salvaged vehicles.
Rise of Junk TitlesRather than issuing salvage titles, insurance companies are now opting for “junk titles” or “Partson titles.” These designations, varying by state, make the vehicle ineligible for future titling. The VIN number is entered into the national motor vehicle title information system, creating a permanent ban on titling or registering the vehicle anywhere in the country.
Liability Concerns for Insurance CompaniesInsurance companies fear the potential liability associated with bringing salvaged vehicles back on the road. If a previously salvaged car is involved in an accident, legal repercussions may follow, leading to lawsuits against the insurance company that originally owned the vehicle. To mitigate this risk, insurers are increasingly opting for junk titles to permanently bar these vehicles from returning to the road.
Market ImplicationsThis shift in insurance company practices is influencing the market for salvage vehicles. Despite receiving similar amounts at auctions for both salvage and junk titles, insurers are increasingly labeling vehicles as “Parts Only.” It’s anticipated that within a year or two, all vehicles sold at these auctions will bear a Parts Only designation, completely eliminating salvage titles.
Stricter DMV Inspection PoliciesIn response to this trend, some state DMV inspection policies are already rejecting salvage title inspections. Even if a salvaged vehicle is fully repaired and meets all requirements, states are becoming reluctant to allow these vehicles back on the road, further complicating the process of obtaining a salvage title.
Unseen Damage to Recovered Theft VehiclesRecovered theft vehicles, initially labeled salvage or junk, often appear to have minimal damage. However, insurance companies refrain from selling them as clean titles due to uncertainty about potential hidden damages. This caution stems from unknown factors, such as stolen airbags or structural damage, leading insurers to opt for Parts Only designations.
Flooded Cars and Parts Only DesignationEven flood-damaged cars with no apparent physical damage may receive a parts-only designation. Smells of mustiness or surface rust on brake rotors may be present, but as long as there’s no visible physical damage, insurance companies categorize these vehicles as parts only.
Caution for BuyersBuyers considering vehicles at Copart or IAA in the coming years should be aware of the evolving landscape. The prevalence of salvage titles is diminishing, making way for parts-only designations. It’s crucial for buyers to exercise caution, avoiding purchases unless a clear salvage title is present. Failure to do so may result in being unable to obtain a title for the purchased vehicle, causing financial loss and legal complications.
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The state of New Jersey poses a unique approach to bonded titles, creating some confusion among vehicle owners. Unlike most states, New Jersey’s process, termed the “improper evidence of ownership procedure,” does not mandate the purchase of a bond. In this article, we delve into the intricacies of the New Jersey bonded title process, shedding light on the steps involved and the alternatives, such as the court-ordered title.
Understanding the New Jersey ProcessWhen obtaining a title in New Jersey without proper evidence of ownership, the state requires adherence to a specific procedure. It’s essential to note that New Jersey stands apart from other states where a bonded title process involves acquiring a bond certificate from a bonding agent, often at a significant cost. In New Jersey, it is referred to as the improper evidence of ownership procedure, which, although distinct, involves additional steps.
The 12-Step ProcedureTo initiate the New Jersey bonded title process, a comprehensive 12-step procedure must be followed. The procedure, outlined by the Motor Vehicle Commission (MVC), begins with a proof of ownership lean search application. This involves submitting $15 to the DMV for a printout detailing any lean, stolen status, or salvage information. Importantly, this step must be completed before proceeding further.
Completing the necessary formsOnce the title search information is received, the process continues with the completion of the essential forms. The emergency application for a vehicle title (form SS150) is to be fully completed and notarized. Simultaneously, an advertisement must be placed in a local newspaper, signaling an intent to obtain a title for the vehicle. This step is accompanied by reaching out to the local police department to ensure there are no issues with the vehicle’s status.
Communication and documentationFurther steps involve filing an SS45, a notice of intent to obtain a title, to be sent to the last owner and lean holder. Additionally, a bill of sale, photographs of the VIN and the vehicle, and three letters from individuals affirming the vehicle’s possession are required. These meticulous steps are essential for proving ownership.
Title Application and FinalizationThe final steps include completing a regular title application (SS7), submitting a $60 check for the title fee, and paying 7% sales tax. A signed SS94, affirming personal use only and not for resale, is also mandatory. With these components in place, the New Jersey bonded title process is on its way to completion.
Forms and documentation detailsA crucial aspect of the process involves understanding and correctly filling out various forms. From the title search lean request to the buyer’s declaration emergency application, notice of intent to obtain title, and the regular title application, each form plays a role in establishing ownership.
While the New Jersey bonded title process may seem intricate, understanding the steps involved empowers vehicle owners to make informed decisions. Whether navigating the process independently or utilizing a title service, individuals should also consider the court-order title process, which offers a simpler alternative with fewer steps. Ultimately, for New Jersey residents facing title challenges, this guide provides a comprehensive overview of the bonded title process and available options.
Watch our YouTube video: https://youtu.be/HJIF8o2I5tQ?si=bXj20HiCBeHyT8gQ
New Laws and the End of the Vermont Title LoopholeIn 2024, Vermont will witness significant changes in its titling and registration laws. A wave of new regulations has swept in, impacting residents and stirring potential controversies. The year started with the discontinuation of the infamous Vermont title loophole, which allowed out-of-state registrations. This change, implemented in June 2023, only permits the loophole for Vermont residents or those with explicit permission from their home state.
Stricter Regulations for Older VehiclesThe latest blow comes in 2024, as Vermont no longer issues registrations for vehicles older than 15 years. Even Vermont residents must now navigate the titling process for vehicles of any age, adding an extra layer of complexity. This poses a challenge for current registration holders, including those who were accustomed to obtaining registrations for older vehicles without the need for a title. The impact is demonstrated through the experience of the Maxwells attempting to register their 2005 Jeep.
Challenges for Current Registration HoldersThe Maxwells, attempting to register their 2005 Jeep, face an unexpected hurdle. Previously, due to the age of the vehicle, they could secure a registration without a title. However, the recent changes necessitate a title for all vehicles, regardless of age. This raises concerns for individuals who never acquired a title for their vehicles, potentially leading to complications for existing Vermont registration holders.
Voided Out-of-State Vermont RegistrationsMoreover, individuals who possess out-of-state Vermont registrations are facing a dilemma. The recent changes will void these registrations, creating an additional challenge for those who have already registered their vehicles. The process to resolve this involves utilizing the VIN number and an affidavit, but the inconvenience for affected individuals is undeniable.
Rising Fees and Administrative ChangesAdding to the mix, the Vermont Department of Motor Vehicles is increasing its fees, further impacting residents. The heightened fees add financial strain, making the registration and titling process more burdensome than before. These changes signal a significant shift in the landscape of vehicle registrations in the state.
The Enforcement Director was placed on administrative leave.Beyond the legislative changes, the Vermont DMV is facing internal challenges. The Director of Enforcement, who assumed the role just a few months ago, has been placed on administrative leave. Formerly a police chief and detective, this individual is now under FBI investigation. The nature of the investigation remains unclear, leaving room for speculation about potential wrongdoings or issues within the enforcement division.
Speculations Surrounding the FBI InvestigationThe FBI’s involvement in the investigation adds an extra layer of intrigue. While details remain scarce, the situation raises questions about the enforcement director’s actions or potential internal problems within the DMV’s enforcement division. As the investigation unfolds, the impact on the Vermont DMV and its overall operations remains uncertain.
Conclusion and Call for VigilanceThe unfolding developments at the Vermont Department of Motor Vehicles paint a picture of uncertainty and change. With legislative reforms, administrative shifts, and an ongoing FBI investigation, the future remains unclear. As the situation evolves, residents and stakeholders must stay vigilant to understand the full extent of these changes and their implications for Vermont’s motor vehicle processes. Stay tuned for further updates on this evolving situation.
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The Rise and Fall of Vermont Title LoopholesWell, if you’re here and reading this, it’s because you’ve heard something about getting a title from Vermont—maybe you’ve heard a lot about getting a title from Vermont. This has been a subject for more than 10 years, using a loophole to get a title from Vermont.
The End of an Era in 2023Well, if you’re familiar with it and you’re a veteran, you probably already know this: all good things must come to an end. In June 2023, the state of Vermont finally caved into pressure from other states to stop issuing these loophole registrations to people all over the country.
The Loophole Process and its TerminationIn order for them to use that to get a title in their state, you could use a bill of sale and get a registration and a license plate from Vermont, take that as your proof of ownership, bring it to your state, and switch over for a title. Now, the other secret is that a lot of people never switched it over; they just kept driving on Vermont plates in their state. That’s a whole other issue.
The End of Vermont Registrations for Out-of-State ResidentsFinally, as of January 2024, when we’re doing this video, Vermont will no longer give registrations to people from out of state. In fact, they don’t issue registrations for old cars anymore. You have to get a title, which means you have to have the old title.
Resident Restrictions and the Permission Slip DilemmaEven if you did that, you have to be a resident of Vermont. They do not give titles, registrations, or anything else to out-of-state residents. Even if you get the magic permission slip signed, you’ll see in prior videos and on our website what we used to talk about. Look, if you can get your state to give you a permission slip to sign it from your DMV to let Vermont give you an out-of-state registration, we’ll still do it. Most states weren’t doing that anyway, but now that’s over.
The Drawbacks of Vermont as a Title SolutionVermont wasn’t the best way to get a title, even going back two or three years. There were other methods that were way better; they were cheaper. Vermont used to charge you outrageous sales tax; that’s why they kept doing it because they’re making a lot of money. Vermont made you jump through a lot of hoops.
The Cautionary Tales of Using LoopholesSo, you can still do all the other legal methods of getting a title in your state. Don’t use any of these out-of-state loopholes because they’re just going to come back to haunt you. In fact, we’re hearing stories from people who got a Vermont registration in 2022-2023, used it to get a title in their state, did the loophole, and now their state is going back and revoking their title because they didn’t do it the proper way.
Alternatives to Vermont TitlesWhat does that mean for you if you have a vehicle that you need to get a title for but don’t have proper documentation for? That’s okay. There are methods you could use; you could do a bonded title, a court order title, or a magistrate title prior to a contact. There are three or four different methods; they’re all better than Vermont ever was, they’re cheaper, and it’s just paperwork.
Vermont is Dead. Choose the Right Path.Our website will give you the instructions; you could do it all yourself for free. We have a title service if you want our assistance; we’re glad to help. But, probably for the better, the Vermont thing is officially dead. There were a couple of little ways you could kind of still use it up until about a month ago by getting permission from your state, having an old car, and all that stuff. Now it’s over. Vermont will not give you anything if you don’t live in Vermont with a license. So, do it the proper way; go through your state; don’t use any of these out-of-state loopholes, urban legends, because they’re just going to come back to haunt you.
Seeking guidance and assistanceOur website will give you the instructions; if you’d like more information, you can call us up. The phone number is on the website below; you can even schedule a consultation with a title agent if you prefer, or we have title service where we can do all the paperwork for you.
The Era of Vermont is Officially OverSo, yes, the short answer is that Vermont is officially done. It was kind of over 6 months ago, but there were still some pathways you could try to use it. But now, forget about it. Vermont is dead. Forget about Vermont. If it’s the first time you’ve heard about it, you didn’t miss anything. If you’ve been using Vermont before, okay, now you can switch to Plan B. But Plan B is out there, and it’s better than Vermont ever was.
Watch our YouTube video: https://youtu.be/PwtR3B6MqEs?si=0HGfKACVdxmkvMbE
When it comes to titling older vehicles, especially highline or specialty models, one aspect that often demands attention is vehicle valuation. The need for a precise appraisal becomes evident in various situations, whether it be for tax assessments, legal matters, or probate cases. In this blog post, we delve into the intricacies of vehicle valuation and shed light on the importance of appraisals, featuring insights from a conversation with Auto Appraise.
In the realm of vehicle ownership, scenarios often arise where the established value is either too high for tax considerations or underestimated. Appraisals play a crucial role in establishing the accurate market value, ensuring fair tax assessments.
Appraisals become indispensable in legal contexts, such as court-ordered titles, judgment liens against vehicle owners, and probate cases involving estates with vehicles. An expert appraisal, backed by documented experience, becomes pivotal in situations prone to disputes.
In a recent conversation with Auto Appraise, a specialized company in vehicle appraisals, we gained insights into the importance of having professionals in the field. It’s noteworthy that our mention of Auto Appraise is not an affiliation, and we don’t derive any financial benefits from them. However, their expertise in the industry makes them a noteworthy player in the realm of vehicle appraisals.
Auto Appraise boasts a team with proven experience in conducting appraisals. Recognizing the significance of having an expert witness whose opinions hold up in court, their documented background instills confidence in the reliability of their services.
To provide potential clients with a glimpse into their work, Auto Appraise maintains a YouTube channel where they discuss various vehicle types, with a particular focus on older classic vehicles. This channel offers valuable insights into their expertise.
While appraisals are crucial, it’s essential to conduct a cost-benefit analysis. For minor variations in valuation that don’t significantly impact taxes, the cost of an appraisal may outweigh the benefits. However, for high-value vehicles or specialized probate cases, an appraisal becomes a worthwhile investment.
Before opting for an appraisal service, ensure that the appraiser possesses the necessary credentials and licenses accepted by the jurisdiction or venue where it’s required. Compatibility with court or DMV standards is paramount for the appraisal’s validity.
In the intricate world of vehicle valuation, the role of appraisals cannot be overstated. Whether dealing with tax considerations, legal complexities, or unique probate cases, professional appraisal services, such as those offered by Auto Appraise, provide a crucial lifeline. If you find yourself in need of a vehicle appraisal, it’s advisable to communicate with the appraiser, ensuring their services align with your specific requirements.
For inquiries or assistance regarding appraisals, feel free to reach out to our help desk at [email protected]. Our dedicated team is here to guide you through the intricacies of vehicle valuation, empowering you to make informed decisions.
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