When you purchase a vehicle from a car dealer, whether it’s an online dealership or a traditional car lot, and you decide to finance it through a credit union or another bank, you might assume that securing financing guarantees a smooth title transfer. However, what if the dealer fails to provide the title, leaving you in a potential quagmire? In this blog post, we’ll explore the implications of such a scenario and offer insights on how to protect yourself in these situations.
There are various reasons why a dealer might not have the title readily available. They could have acquired the vehicle from an auction and not received the title promptly. Despite regulations prohibiting the sale of a car without a title in possession, dealers might prioritize immediate profit over adhering to these rules, putting buyers at risk.
If you’ve secured financing through a credit union or a bank, you may wonder how the absence of a title affects your financial agreement. When you finance a vehicle, your bank essentially provides the dealer with the car’s price in cash. If, for any reason, the dealer doesn’t furnish the title promptly, your bank is left in a precarious position. They’ve paid cash for the car on your behalf, and they expect to recoup that amount through your monthly payments.
When a dealer fails to provide the title, it triggers a series of potential consequences for the buyer:
To safeguard yourself from falling victim to a delayed title scenario, here are crucial steps to consider:
Falling victim to a delayed title can lead to inconvenient and costly situations, with buyers unable to legally drive their vehicles due to expired temporary plates. To avoid such predicaments, exercise due diligence, and insist on title verification before signing any contracts or making payments.
If you find yourself entangled in a title-related issue or have questions about protecting your interests when buying a vehicle, don’t hesitate to reach out to our team. We’re here to provide guidance and support to ensure your ownership journey is smooth and secure.
Remember, your vehicle’s title is not just a piece of paper; it’s your key to hassle-free ownership. Insist on title verification, drive with confidence, and own your vehicle securely. Don’t let the absence of a title turn your purchase into a financial maze.
When you purchase a vehicle from a dealership, you expect to receive the title and lien release, which proves ownership and allows you to register the car. However, what happens if the dealership goes out of business before you receive these essential documents? Two potential problems could arise – your vehicle’s title and lien release. Let’s discuss what you need to know if your dealer goes out of business.
Recent news about the popular retailer Carvana has brought this topic to the forefront. Carvana is currently experiencing serious financial problems, reporting a loss of $1 billion in the fourth quarter of 2022. While they may restructure and survive, losing a billion dollars and 90% of their stock price is a significant setback. So, what should you watch out for if you purchase a vehicle from Carvana or any dealership that may be at risk of going out of business or losing their license? And what happens if you haven’t received your title yet?
One potential problem that could arise if your dealer goes out of business is that you may never receive your title. When you buy a vehicle, you need the title to prove ownership, but obtaining ownership can be difficult if the dealer is no longer in business. While most states have licensing laws that require dealers to post bonds to help customers get a title, it can still be a big mess to sort out.
To avoid this situation, we recommend asking the dealer to show you a copy of the title before you give them any money. This is important whether you are buying a new or used car, as it can help you avoid potential issues down the line. However, this can be tricky if the dealer sells vehicles on a floor plan, which means they have a line of credit from an auction, bank, or finance company to buy the vehicles. In this case, the bank or auction may hold the title until the dealer pays off the loan. If the dealer sells the vehicle before paying off the loan, they won’t have the title to give you, and you won’t be able to put it in your name.
Additionally, even if the dealer has the title, it can still get lost or damaged. This is why it is crucial to take every step you can to protect yourself when buying a car, especially from a dealer that may be at risk of going out of business or losing their license. By being proactive and doing your due diligence, you can avoid potential headaches and ensure a smooth vehicle ownership experience.
If you’re planning to buy a car from a dealer, especially one with some risk of not being around in the future, we highly recommend asking to see the title. They don’t have to give it to you, and they can cover up the owner’s name, but if they have the title in their hands, it can give you a lot more peace of mind. Knowing that you won’t be stuck without a title is crucial, especially if the dealer goes out of business.
But what if you’ve already purchased a vehicle and currently have title problems? In that case, you need to act quickly. Send notices to the dealer, the titling authority, and their licensing authority immediately to ensure you are not lost in the shuffle. Remember, the early bird gets the worm. If the dealer has titles they need to pay off from a floor plan because they’re short on cash, being persistent can help ensure they pay off yours first.
You don’t want to be the person whose title processing is last because it can lead to problems down the line. Your registration could run out, your temporary tag could expire, and you could get pulled over, have your car towed, and be out of luck. Being at the front of the line, not the back, is essential.
Many dealers may be running into financial problems, not just Carvana. But any dealer in financial trouble could pose a risk for buyers when it comes to obtaining the title. You don’t want to be the person who pays good money or owes money to a bank and doesn’t get a title. If you run into title problems, you can protect yourself and ensure a smooth vehicle ownership experience by being proactive and taking action.
In conclusion, you must look out for title problems when purchasing a vehicle from any dealer. Unfortunately, it can happen anywhere, even with reputable dealers. If the dealer loses the title before putting it in your name, you could be left hanging for a long time.
At our company, we handle a lot of titles for auctions and dealers, and we’ve seen situations where the dealer bought a car from an auction, had the title in their briefcase in their car, and the briefcase got lost or stolen. In those cases, getting the title back can be difficult, and the dealer cannot apply for a duplicate title, contrary to popular belief.
To protect yourself from potential title problems, make sure to take the necessary steps when purchasing a used car, such as asking to see the title and ensuring that the dealer is reputable. Stay informed, and don’t hesitate to contact us if you have any questions or concerns about title issues.
Get expert advice for buying or selling your car with TelAdvice.com. Our team of automotive experts can provide you with tailored advice to navigate the process with confidence. Schedule your consultation today and take the first step towards a stress-free buying or selling experience.
https://cartitles.com/wp-content/uploads/2023/03/teladvice-logo-transparent-300×165.pngTalk to an Expert
Vehicle titles are crucial in the automobile industry, especially for exported vehicles from auctions. These vehicles are highly prone to title investigations. In this article, we will focus on stolen vehicles from the US that were discovered in Europe. When a vehicle is stolen in the United States, titling becomes very difficult because the VIN or serial number is flagged as stolen. The federal record system, known as the National Motor Vehicle Title Information System (NMVTIS), accessible to all 50 states in the US, can identify stolen vehicles, making it impossible to title them. Even if a car is not stolen but has a lien, you still cannot sell it. However, shipping the car to another country can be a viable solution as the owner can stop paying the lien, and the car might be able to be titled.
To prevent stolen vehicles from being exported, the United States employs a unique approach. Unlike other commodities, vehicles undergo an inspection by the Customs and Border Protection (CBP) agency of Homeland Security on their way out of the country. Typically, we associate customs with inspecting things on their way in, but vehicles are also checked on their way out. The CBP aims to ensure that no vehicles leave the country that shouldn’t be leaving, such as those that are stolen, have liens, or have other problems. To get around this, people may hide vehicles inside containers and label them as auto parts or something else. However, this tactic is not foolproof, as a vehicle doesn’t need to be packed in a container, and it can be shipped on a transporter. If the VIN is hidden inside a container, the CBP won’t inspect it, but they will find it when it reaches the other end. The Spanish version of customs discovered the stolen vehicles when they came off the boat, and they alerted their American counterparts. This is why thieves often try to export stolen vehicles quickly to get them out of the country before they’re caught.
In many cases, stolen vehicles have trackers on them and can be located at the port. Port facilities have high-tech methods for discovering vehicles inside a container, such as x-raying the container or using dogs to detect vehicle-type scents. These methods catch many batches of vehicles leaving the country, with 30-40 vehicles being discovered at a time. However, many of these vehicles aren’t truly stolen; they have liens on them. Bringing a vehicle to another country and trying to title it with a VIN that’s not in the US can be tricky. Many other countries will check US VINs to see if they’re stolen and won’t title a stolen car, but they may not check for liens. If a person has a high-end vehicle with a lien, they can borrow money to buy the car, ship it, and sell it for cash, even at a discount. This puts money in their pocket. Customs is crucial to preventing title fraud or title washing because the VIN number sticks with the vehicle in this country. If the car is taken overseas or across the border, the owner can try to get ownership of it and extract the value from a stolen vehicle, a vehicle with a lien, or a bad title. However, if you’re dealing with a vehicle in another country that doesn’t subscribe to the United States title research or title background, then the title defect may not be a problem.
Is obtaining a title for an old, beat-up car in lousy condition easier than getting a title for a new car? This is a common question when someone faces difficulties with the DMV in obtaining a title. They argue, “It’s just an old car. It shouldn’t be that hard to get a title.” However, here’s the reality: the DMV does not differentiate how difficult it is to obtain a title based on the car’s worth. Whether you have a $10 million car or a beater, it is equally challenging to get a title.
This is because the DMV does not know the car’s value simply because it’s old or beat up. Some old vehicles hold a high value, and it’s not the DMV’s responsibility to determine a car’s worth. The fact that a vehicle is old or in poor condition doesn’t mean it’s not worth a lot. For example, suppose you came across an old ’69 Yanko Z 28 Camaro in terrible shape. In that case, it could still be worth $300,000 when restored. The DMV cannot give you a title without the proper documentation, as doing so would transfer someone else’s vehicle ownership to you. This is not allowed, even if the car is in bad condition.
By the same token, if the DMV made it harder to get a title because a car was worth more money, that wouldn’t be fair either. A car is a car, and its worth doesn’t matter. Even if a vehicle is only worth a hundred dollars to someone, that person might not want to lose it. Therefore, if the DMV is issuing titles to cars simply because they’re old or low in value, they are not protecting people’s property rights, which is the real purpose of getting a title. Getting a title is not just about you receiving a title; it’s about taking it away from someone else. Once you have a title with your name, other people’s rights to that vehicle are extinguished. The DMV effectively declares that nobody else owns the car anymore.
However, someone else might have legitimate rights to that vehicle, and just because a car is old and beat up doesn’t mean you get to claim it without regard to anybody else’s rights. Therefore, remember that a car’s age or value does not make it any easier to obtain a title. If the car is legitimately yours, with no liens, salvage, or any other issues, and nobody else has any rights to the vehicle, you should have no trouble getting a title.
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
When it comes to titling older, Highline, or specialty vehicles, vehicle valuation is a frequent concern. Often, an appraisal is necessary to establish the vehicle’s clear value. Sometimes, the value is overstated for taxes, and an appraisal is needed to demonstrate the accurate value. Conversely, some individuals may not be aware of their vehicle’s value. So, how can you determine the correct value?
We had a recent conversation with a company called Auto Appraise, and please note that we are not affiliated with them and do not profit from them. It is simply beneficial to know that there are professionals in this industry who can assist you. The appraisal is frequently required for probate cases where an estate with vehicles needs to be sold, and their value must be established. In other instances, legal matters, such as court-ordered titles or judgment liens against the vehicle’s owner, necessitate determining the vehicle’s value. It is essential to have an expert with documented experience in these cases. As we know from our investigative work if a person’s opinion cannot hold up in court as an expert witness, putting it on paper may not be worthwhile. Working with an individual with provenance and appraisal experience is crucial when dealing with disputed amounts.
However, conducting an appraisal to save a few hundred dollars on taxes is not worthwhile since appraisals can be quite costly. For instance, if you’re following the Vermont process and have a bill of sale for $3000 while the book value is $8000, and you don’t want to pay taxes on the additional $5000, you’ll only be charged about $300 in taxes. It makes no financial sense to pay hundreds of dollars for an appraisal to save $300. However, if you own a vehicle worth well into the five figures, such as $50,000 to $60,000, and the book value overestimates its worth, it may be worth considering an appraisal. Similarly, for specialized probate cases, an appraisal may be helpful.
When selecting an appraiser, ensure they have the appropriate credentials or license that the jurisdiction or venue that requests it will accept. For example, if it is necessary for the court, verify that the court will take it. If you need an appraisal for the DMV, ensure it is the type of appraisal the DMV will accept. It would be best to speak with the appraiser, such as the company mentioned here, to ensure they have the appropriate experience, reviews, and background, particularly for classic, specialty, or Highline vehicles. Although they may also appraise new cars, it is worth investigating. If you require additional information about appraisals, contact us at our help desk at [email protected].
Tell us about your vehicle and we'll direct you to a title recovery method that matches your scenario.
"*" indicates required fields
