Welcome to another episode of Car Titles, where we unravel the mysteries surrounding vehicle titles and address common questions and challenges raised by our customers. Today, we’ll delve into a series of real customer messages, exploring how these scenarios might resonate with your own experiences. Let’s dive in!
Our first inquiry hails from Illinois, featuring a classic tale of an old truck with a complicated history. The buyer, navigating through a web of transactions involving an old lady, a barn, and multiple bank buyouts, finds themselves stuck with a lingering lien issue. The state of Illinois demands a lien release for a bonded title, posing a significant hurdle.
In such cases, reaching out to the current bank in writing to request a lien release is the initial step. Craft a lien release document, fill it out, but refrain from signing it. Send it to the bank with a return envelope. If successful, you’ll have the lien released. If not, consider a court-ordered title as plan B.
Our second scenario unfolds in California, where an individual holds a title but seeks to register the vehicle out of state, specifically utilizing the “Vermont loophole” to avoid stringent smog inspections. However, this tactic is not designed to sidestep emissions regulations.
The Vermont loophole is intended to provide documentation in the absence of a title, not to evade state-specific requirements. Using Vermont registration to dodge smog inspections won’t hold up. States are aware of this loophole, and attempting to use it for such purposes may lead to legal consequences.
Our third case arises from Missouri, where an individual purchased a vehicle, lost the title before transferring it, and now contemplates obtaining a duplicate title. However, the term “duplicate title” has specific connotations in DMV procedures.
If the original title is lost, the current owner can apply for a duplicate title. However, if you’re the buyer without the original title, explore the possibility of a bonded title. Submitting affidavits, forms, and a surety bond to the DMV can lead to the issuance of a bonded title.
Our final query comes from a person named Sally (or Sully), who found a vehicle dropped off in their yard without a title. They wish to file for an abandoned vehicle title, assuming it’s a straightforward way to claim ownership.
Contrary to popular belief, designating a vehicle as abandoned doesn’t grant ownership rights. In most states, an abandoned vehicle is relinquished to the state, which then auctions it off. Given that the vehicle was given, not abandoned, exploring other avenues for title acquisition is advisable.
These scenarios offer a glimpse into the diverse challenges individuals face when navigating the realm of car titles. If you have your own title-related questions or dilemmas, feel free to call our hotline or email our help desk at [email protected]. We’re here to assist you on your journey through the intricacies of car titles.
As we continue to address real-world title challenges, stay tuned for more videos offering insights and solutions to empower you in your car ownership endeavors. Remember, your questions drive our discussions, and we’re here to guide you through the twists and turns of the car title landscape.
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.
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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.
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