Here’s another side effect of the crazy auto market with prices skyrocketing on used cars. One of the ways fraudsters are taking advantage of this is they buy high-mileage used cars for cheap and roll back the odometer so it looks like the car has less mileage than it shows. With the lower represented mileage, the fraudsters can resell the car at a much higher price to an innocent buyer. Low-mileage used vehicles are becoming increasingly hard to come by, and these fraudsters are banking on the desperation of buyers.
In this article from KSLTV, an investigator showed an example of how he rolled back the odometer of a vehicle from 150,000 to 50,000 with a cheap $300 tool. Now with the assumption of lower miles, you have a vehicle that may be worth $10,000, whereas it is actually worth around $3,000. So the fraudsters can sell the vehicle for much higher and the buyer thinks they’re getting a great deal when really they’re just buying a high-mileage car with a bunch of potential problems.
The high value of used cars skyrocketing has created this problem and the digital odometers make it even worse. Odometers used to be actual wheels inside of the dashboard that turned the numbers mechanically. Now, odometers are all digital so you can actually reprogram them to change the mileage.
The problem comes in for the buyer when it’s time to register and title the vehicle. When a vehicle is titled and registered, the mileage is recorded in the title information system. If you go to register and title your vehicle, but the mileage is lower than previously recorded, this will raise red flags in the system for true mileage unknown (TMU). True mileage unknown is a big deal. If the mileage is unknown, then there is no value because a TMU car can have any amount of miles.
Don’t take the word of the seller or what you see on the odometer, do a title history check to make sure that the vehicle has the mileage it’s supposed to. Don’t get stuck with a car that you think has low mileage and no problems, but has really been through the wringer and has significantly more miles on it than what was represented.
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 LetterPGlmcmFtZSBzcmM9Imh0dHBzOi8vYXBwLmFjdWl0eXNjaGVkdWxpbmcuY29tL3NjaGVkdWxlLnBocD9vd25lcj0xOTQ4ODEyNiZhcHBvaW50bWVudFR5cGU9MjMwNjY0MTAiIHRpdGxlPSJTY2hlZHVsZSBBcHBvaW50bWVudCIgd2lkdGg9IjEwMCUiIGhlaWdodD0iODAwIiBmcmFtZUJvcmRlcj0iMCI+PC9pZnJhbWU+PHNjcmlwdCBzcmM9Imh0dHBzOi8vZW1iZWQuYWN1aXR5c2NoZWR1bGluZy5jb20vanMvZW1iZWQuanMiIHR5cGU9InRleHQvamF2YXNjcmlwdCI+PC9zY3JpcHQ+
The unprecedented surge in used car prices has given rise to an alarming trend in the automotive market—odometer fraud. As consumers grapple with the challenge of finding affordable vehicles with low mileage, fraudsters are exploiting the situation by purchasing high-mileage cars at a bargain and manipulating the odometer readings to inflate the vehicle’s perceived value. In this blog post, we delve into the details of this deceptive practice and discuss how buyers can protect themselves from falling victim to odometer fraud.
The current auto market has witnessed a tumultuous journey marked by soaring prices, especially in the used car segment. As consumers face the daunting task of securing reasonably priced vehicles with low mileage, opportunistic criminals are capitalizing on the situation. One method they employ involves acquiring high-mileage cars at a lower cost and then tampering with the odometer to present a false narrative of the vehicle’s condition.
Unlike traditional odometers with physical wheels that displayed mileage, modern vehicles are equipped with digital odometers. While these digital displays enhance convenience, they also create an avenue for fraudsters to exploit. By using inexpensive odometer correction tools—priced at around $300—hackers can connect to the car’s computer system and roll back the recorded mileage.
Investigators have demonstrated the ease with which these frauds can occur. In one case, a vehicle with 150,000 miles on the odometer was rolled back to 50,000 miles. The consequence is a deceptive increase in the vehicle’s market value. What seems like a good deal at $6,000 or $7,000 might actually be a vehicle plagued with issues, originally valued at $2,000 or $3,000 due to its true high mileage.
The real challenge arises when buyers, unaware of the manipulated mileage, proceed to register the vehicle. The prior, unaltered mileage is recorded in the title history. In the event of a dispute or conflict, the title may be marked as “TMU” or True Mileage Unknown. This designation can render the vehicle virtually worthless, as it implies that the car’s actual mileage is uncertain and could be significantly higher than what is indicated.
To shield yourself from the perils of odometer fraud, it is imperative not to rely solely on the seller’s word or the information displayed on the vehicle. Performing a thorough title history check is a crucial step in ensuring that the odometer reading is accurate. By verifying the vehicle’s mileage against its documented history, you can avoid the pitfalls of purchasing a seemingly low-mileage car that has, in reality, endured extensive wear and tear.
As the used car market continues to navigate its current challenges, consumers must remain vigilant against deceptive practices like odometer fraud. Staying informed, conducting due diligence, and leveraging title history checks can empower buyers to make well-informed decisions and avoid the pitfalls of a seemingly good deal turning into a costly nightmare.
Car titles serve as the legal cornerstone of vehicle ownership, issued exclusively by government agencies to establish proof of ownership. In this comprehensive guide, we’ll explore the intricacies of car titles, shed light on their critical components, and address potential challenges that may arise, such as lost or invalid titles.
A car title is a government-issued legal document that verifies ownership of a vehicle. This document is not a commodity available for purchase or download from the internet; it is strictly governed by the state where the vehicle is registered. Understanding its components and the information it holds is crucial for any vehicle owner.
Car titles come in various designs and formats, each unique to the issuing state. A representative example from Pennsylvania showcases security features like scrollwork and watermarks, akin to those found on currency. Key information includes the Vehicle Identification Number (VIN), year, make, and model of the vehicle, along with the owner’s name and address.
Encountering a situation where a title is lost, stolen, or deemed invalid is not uncommon. In such cases, the steps to address the problem depend on whether you are the legal owner or not.
Liens on vehicles come in two forms: financing liens and mechanics liens. Financing liens, resulting from borrowed money against the car, persist until the lien holder submits a specific document to the titling authority. Mechanics liens, a privilege granted to automotive facilities, allow the facility to take ownership of a vehicle left for repairs, storage, or towing until payment is received. Non-automotive entities can utilize civil liens to assert a claim against a vehicle.
While liens can represent financial obligations, they can also work in your favor. Properly addressing and navigating liens ensures clear ownership and minimizes the risk of disputes or challenges to your vehicle’s ownership.
Understanding the nuances of car titles and addressing common problems empowers vehicle owners to navigate the complexities of vehicle ownership confidently. Whether dealing with lost titles, liens, or other challenges, being informed and aware ensures a smoother journey through the intricate landscape of car titles. For more detailed information and resources, explore our website, where you’ll find additional insights and guidance on managing car title-related matters.
As we step into 2023, our company proudly celebrates nearly two decades of specializing in handling car titles for a diverse clientele, including dealerships, auctions, lien holders, and consumers. Over the years, we’ve encountered numerous inquiries about the best strategies for obtaining titles, especially in complex and challenging situations. In this blog post, we share insights and methods that have proven effective in solving the most intricate title problems, offering you a roadmap to navigate the often perplexing world of car titles.
While handling an uncomplicated title process can involve options like a bonded title or the Vermont loophole (not recommended), more challenging situations demand creative and strategic solutions. Whether you’re dealing with title complications arising from trade-ins at dealerships or unresolved liens, we present three tried-and-tested methods to address the most difficult title problems.
One straightforward approach to resolve title complications involves obtaining signatures from the prior owner or lien holder listed on the title. It’s essential to understand that no one but the person named in the title record can sign the required form. To simplify the process, prepare all necessary documents, fill out the form, and mail it to the concerned party. By making it easy for them to sign and return, you increase the likelihood of cooperation. Avoid intrusive phone calls and demonstrate that you’re looking out for their interests, making them more inclined to assist you.
For those reluctant to embrace the complexity of court proceedings, consider that obtaining a court order title is less complicated than enduring the consequences of not having a title at all. Filing three forms—petition for ownership, letter of non-interest, and Affidavit of Facts—with the court in your county can lead to a Judgment of Ownership. This legal document empowers you to secure a title directly from the DMV, bypassing bureaucratic hurdles. Remember, courts often facilitate remote processes to expedite the resolution.
While some may be hesitant to pursue a surety bond title due to misconceptions about cost or duration, it can be a surprisingly streamlined process. By filling out required forms and signing affidavits, you can obtain a bonded title in many states. Although not universally available, it’s a viable option where applicable. The cost of a bond is often reasonable, making it an accessible solution for those seeking a title under challenging circumstances.
The Vermont loophole, a method some consider, involves acquiring Vermont registration to circumvent title complications. However, this approach introduces complexities, including dealing with two states, substantial tax obligations to Vermont, and potential challenges upon registering the vehicle in your state. It’s crucial to weigh the costs and benefits before pursuing this option.
Contrary to popular belief, claiming a vehicle as abandoned doesn’t grant automatic ownership rights. In many states, filing paperwork declaring a vehicle abandoned could lead to the state seizing and auctioning the vehicle. Similarly, while mechanics liens are an option for licensed Automotive facilities, a civil lien or court-ordered title may offer a simpler alternative for civilians seeking ownership claims.
It’s essential to recognize that obtaining a title is a process that anyone can navigate independently. Whether you choose to handle it yourself or seek professional assistance, full transparency is crucial. Our website serves as a comprehensive resource, providing instructions, comparisons, and insights to empower you as an informed consumer.
As we commemorate two decades of facilitating car titles, our commitment remains unwavering—to empower individuals and businesses facing challenging title situations. Whether you opt for the do-it-yourself route or choose professional assistance, remember that obtaining a title is a systematic process that demands adherence to legal requirements. Navigate the complexities wisely, and may your journey toward securing a clear title be swift and successful.
What is needed to transfer a vehicle title and registration? In the US, transferring a vehicle title involves meeting specific requirements, which can vary slightly from state to state. Despite these variations, most states have very similar requirements.
If you’re looking to transfer a vehicle title, here’s what you’ll need:
The original certificate of title from the prior owner or dealership must be presented at the time of transfer. A title certificate is a legal document, similar to money. You can’t photocopy a $100 bill and take it to the bank and expect it to be deposited; only the original title certificate will be accepted. In addition, the title certificate cannot be damaged or modified, it must be in perfect condition. If there is more than one owner to a vehicle, all titled owners must sign the transfer document. If not, the transfer is invalid.
Many states allow for the odometer statement to be included on the title application, but not all. If your state’s title application doesn’t have a designated spot for the odometer reading, check to see if your state has a separate document. This step will definitely be required for most vehicles year 2010 and newer, while some older vehicles may not need it at all, depending on the state.
If there was a loan against the vehicle that has not been cleared, you’ll need a lien release document from the lender. Even if the loan is paid off, the record of the loan remains with the DMV until the lien release document is presented by you or your lender.
When transferring a title, you’ll definitely need to bring your photo ID. However, the ID typically must be from the state where you are applying for the title. If you recently moved to a new state, you’ll need to transfer your license before you can apply for a title. Most states do not issue a vehicle title to non-residents. There are a few exceptions, but basically, they don’t want to register out-of-state residents because it can be a way for people to evade taxes or inspections in their home state.
In most states, titles are pretty cheap. Michigan, for example, charges $15 for title transfers. But you also have to pay sales tax as well. In Michigan, this is a 6% rate, like many other states. Sales tax is often waived if you’re selling to an immediate family member but check with your state’s DMV first before proceeding. While the title fees can be relatively inexpensive, taxes on a vehicle can get expensive quickly. The amount of tax paid on your vehicle will likely be determined by the book value, not the price you paid for it or the price you think it’s worth.
To register your vehicle, you’ll need to provide proof of insurance. The title proves who owns the vehicle, while the registration proves who can drive the vehicle, and insurance is required to put your vehicle on the road. It’s not normally required to have insurance to get only a title, but it’s a good idea to do it anyway. Even if you’re not driving the vehicle, it can get stolen from your garage or damaged in a fire, but without insurance, any damages will have to come out of pocket.
If you have all of these documents ready, you should be in for a smooth title transfer process. Before proceeding, check with your state’s specific requirements to ensure you have everything you need to successfully complete the title and registration transfer. Otherwise, you’ll have to proceed with a more complicated title recovery process. If it’s your car, you deserve a title in your name.
Tell us about your vehicle and we'll direct you to a title recovery method that matches your scenario.
"*" indicates required fields
