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Is It Legal To TItle A Mini Truck? (Kei, Japanese Mini Trucks)

In recent times, the appeal of Japanese mini trucks has surged among consumers due to their affordability and unique features. However, a common question looms large: Can you successfully obtain title or registration for these compact vehicles in the United States? In this blog post, we delve into the intricate web of rules, laws, and potential challenges associated with registering or titling Japanese mini trucks in various states.

Understanding the Varied State Regulations

The succinct answer to the question lies in the fact that different states have different rules governing the registration and titling of Japanese mini trucks. The federal government, while allowing their importation, imposes specific criteria for on-highway use, such as meeting certain standards and speed limits. It’s crucial to comprehend that mere importation approval doesn’t automatically translate to eligibility for registration or titling.

The exemption for 25-year-old vehicles, outlined in HR 2628, facilitates the importation of vehicles not conforming to federal standards. However, this exemption only pertains to entry into the United States and doesn’t mandate state-level registration or titling.

State-Specific Challenges: An Overview

Examining specific state regulations reveals the diversity in approaches. For instance, Pennsylvania’s official titling division, PennDOT, provides options for registering a mini truck, including off-road titles and farm exemptions. However, it restricts on-road use, emphasizing occasional transportation rather than daily commuting.

Concerns: De-Registration and Changing Laws

An emerging trend is the de-registration of Japanese mini trucks in some states. Maine and Rhode Island, for instance, have revoked titles for these vehicles, signaling a potential shift in how states view their on-road eligibility. This raises concerns about the long-term viability of owning and operating such vehicles in states that are gradually tightening regulations.

State of Affairs in Arizona: Venture Trucks

Arizona stands out with its intention to create a new classification known as a “venture truck” or “mini truck key class.” The definition includes specific usage criteria, such as off-road recreational purposes and a maximum speed of 25 miles per hour. Even in states where mini trucks are allowed, there are often significant usage restrictions, barring them from highways and limiting speeds.

Recommendations for Owners: Check with Your State

For current or potential owners of Japanese mini trucks, a proactive approach is advised. Check with your state’s regulations to determine if they allow titling and registration for these vehicles. Moreover, inquire about any potential plans to change existing laws that might impact the on-road eligibility of Japanese mini trucks.

Caution on Out-of-State Registration: Vermont Loophole

While some may consider registering in another state, it’s not a straightforward solution. Most states require residency for titling and registration. Vermont is an exception, allowing out-of-state registration, but it’s not a foolproof method. Applying for a Vermont registration without proper documentation and formal requests may lead to rejection. Furthermore, using out-of-state plates in a state where you’re not a resident could attract unwanted attention from law enforcement.

Navigate Wisely in an Evolving Landscape

The landscape of registering Japanese mini trucks in the United States is dynamic and subject to change. While some states currently allow it, the trend indicates a tightening of regulations and potential de-registration in the future. For owners or prospective buyers, it’s essential to gather accurate information directly from state titling divisions, avoiding reliance on online forums or unofficial sources.

If you’re considering acquiring a Japanese mini truck, be aware of the evolving nature of state regulations and the possible consequences of ownership. Act prudently, stay informed, and make decisions based on reliable, documented information to ensure a smooth journey in the world of Japanese mini trucks.

Are Car Dealerships Dying Out?

Over the past three years, the automotive industry has faced quite a bit of turmoil. From the pandemic and lockdowns to supply chain shortages and aggressive price markups, car dealerships have been put through the wringer. Now, used car prices have gone up and there’s more inventory at dealerships, but no one wants to buy because of inflation. The prices are higher and because of interest rates, the monthly payments are higher.

The average price of a decent new car right now is around $46,000. At a typical interest rate of around 6-7% over a 60-month term (5 years), the monthly cost for a new car is around $1,000 per month. 

Now, where does that put the car dealership industry? Well, dealerships now have inventory but they don’t have any buyers. Manufacturers are pressing on dealerships from the other end, saying they’re not going to produce hundreds of cars for dealer lots anymore, and some aren’t going to be selling to dealerships at all. Some manufacturers want to sell straight to the consumer, like Tesla. No markups by the dealership, just straight from the manufacturer to the consumer.

What’s that going to do for used cars? Will used cars only be sold through dealerships? Where do you see the used car business in two or three years? Will there be factory stores with a small used car department?

What about electric vehicles? Many of these manufacturers are telling dealerships that in 3-4 years, they can only sell EVs or mostly EVs. Many states are even canceling the eligibility of gasoline vehicles by the end of the decade. So dealerships won’t even be able to sell gas vehicles anymore; they won’t be allowed to go on the road. It’s clear that dealerships have to make a big transition if they want to stay afloat, and that’s going to put a big crimp on their parts and service business.

Most dealerships have a fixed absorption, meaning the fixed operations (service and parts) covers the fixed expenses; meaning overhead, rent, taxes, and insurance, all of this is paid for by their service and parts department. The sales department is where the profit comes from. So if your service and parts department can do 100% fixed absorption, you’re in good shape.

Well, electric vehicles don’t need as much service compared to gasoline vehicles. They don’t have internally lubricated engines or transmissions that need to be serviced regularly. They might need new brakes or tires, but that’s not the same as more expanded repairs. A lot of this is covered by a warranty, but the manufacturer still pays the dealer for the warranty. So what happens when everything goes to EVs and the fixed absorption only comes out to 20-30%? Well, now the sales department has to cover the difference; and if you have a lower margin and a lower volume, that may not be enough to withstand the expense footprint of a large traditional dealership. 

What do you think about phasing out car dealerships and buying directly from the manufacturer? Take away the wishful thinking of how you want a car dealership to be, and let us know how you think it’s actually going to be. No one wants to deal with a runaround salesperson who goes back and forth with the elusive “manager in the back”, would this alternative be a better option? What if negotiating was taken out of the picture and cars had fixed prices? What is the happy medium for consumers and how does a dealership enterprise create a structure that’s profitable and sustainable without going out of business?

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Salvage Auction Title Vehicles Hitting The Market

In the aftermath of hurricanes in Florida, the salvage auction pipeline is witnessing an influx of flood-damaged vehicles. While the rebuilding process is underway, it’s crucial to be aware of a potential pitfall – flood vehicles being sold with non-repairable or junk titles, often labeled as a “Certificate of Destruction.”

What is a Certificate of Destruction?

Vehicles designated as non-repairable or given a Certificate of Destruction are considered beyond salvage. Even if they appear outwardly undamaged or require minimal repairs, these titles indicate that the vehicle has been reported as irreparable due to severe damage, such as flooding. Once a vehicle receives this title, its VIN (Vehicle Identification Number) is canceled, rendering it ineligible for any state to issue a title.

Federal Database: NMVTIS

The cancellation of the VIN places the vehicle’s status in the National Motor Vehicle Title Information System (NMVTIS), a federal database. This system ensures that the non-repairable status is recognized nationwide, preventing the vehicle from ever being legally titled and registered for road use.

Pitfalls for Buyers

Buyers, especially those unaware of the implications, might be tempted by seemingly well-functioning flood vehicles in salvage auctions. It’s essential to recognize that even if repairs are feasible, the non-repairable designation means the vehicle can never regain road legality.

Buying Tips for Consumers

Whether you’re a consumer or purchasing through a broker, here are crucial tips:

  1. Verification is Key: Before making any purchase, thoroughly verify the vehicle’s title. Check for non-repairable, Certificate of Destruction, or junk titles.
  2. Understand the Title Brand: Salvage titles may be repairable, but non-repairable titles are a red flag. Understand the implications before proceeding with a purchase.
  3. Broker Disclosure: If working with a broker, ensure clarity regarding the title status. Brokers should transparently disclose the nature of the title to avoid unsuspecting buyers.
  4. National Database Check: Utilize NMVTIS or other services to check the vehicle’s title status. This can prevent costly mistakes and ensure the vehicle is roadworthy.

Stay Informed, Avoid Pitfalls

While the availability of flood vehicles in salvage auctions might seem like an opportunity, the non-repairable title turns these vehicles into potential money pits. Being informed about the different title designations and thoroughly checking a vehicle’s history can save you from investing in a car that’s practically worthless for road use.

In the aftermath of natural disasters, it’s crucial for both consumers and industry professionals to exercise due diligence and make well-informed decisions when dealing with flood-damaged vehicles.

What do I need to title and register a vehicle?

If you’ve ever wondered about the intricacies of titling a motor vehicle, you’re not alone. The process can be quite nuanced, varying slightly from state to state. In this update, we’ll focus on the requirements for obtaining a vehicle title, drawing insights from the state of Michigan, which mirrors the general requirements found across the United States.

What’s Needed to Title and Register a Vehicle?

The Michigan Secretary of State’s frequently asked questions shed light on the key elements required for titling and registering a vehicle. Here’s a breakdown:

  1. Original Title Certificate: Photocopies won’t suffice. You need the original title certificate from the last owner, ensuring it is unaltered, without modifications like crossing out, whiteout, or photocopying.
  2. Signatures: All title owners must sign the title when transferring ownership. Most states mandate original ink signatures on paper, often excluding online transfers.
  3. Seller’s Signature: The seller must complete and sign the seller’s portion of the title, unless they are physically present at the state office during the transfer.
  4. Odometer Statement: An odometer statement is necessary for all vehicles from 2010 onwards. Older vehicles may have different requirements depending on the state.
  5. Lien Release Document: If there was a loan against the vehicle, even if it’s paid off, you need a lien release document.
  6. Identification (ID): A valid ID, typically a driver’s license, is required. Most states issue vehicle titles to residents only, with limited exceptions.
  7. Insurance: While not always necessary for obtaining a title, valid insurance is required for vehicle registration. It’s recommended even if not registering immediately for protection against unforeseen events.

Additional Considerations and Fees

Beyond the essentials, there are additional factors to keep in mind:

  • Residency Requirement: Most states require vehicle owners to be residents to obtain a title. There are exceptions, such as allowing vehicles in a corporation’s name or providing evidence of a second home.
  • Sales Tax: Expect to pay sales tax on vehicle transfers. While exemptions exist for sales between immediate family members, documentation is often required.
  • Fees: Title transfer fees are typically nominal, often around $15. However, sales tax can significantly impact costs, and it’s determined based on the vehicle’s book value.

Insurance: A Wise Investment

While insurance isn’t a prerequisite for obtaining a title, it’s a prudent step. Having insurance coverage protects your investment, providing financial security in case of theft, accidents, or other unforeseen events.

Navigating the Titling Process

Understanding the requirements for titling a vehicle is crucial for a seamless process. Whether you’re dealing with a vehicle purchase, transfer of ownership, or estate matters, adherence to these guidelines ensures compliance with state regulations. While we’ve focused on Michigan, these principles apply broadly, allowing you to navigate the titling process with confidence. Stay informed, be diligent, and ensure all necessary documentation is in order for a hassle-free vehicle titling experience.

Classic Car Restoration Billing Fraud

If you’re an owner of a classic car or restore classic cars, be on the lookout for unscrupulous restoration companies. Here’s an example of a restoration gone wrong that ended up costing the owner millions of dollars.

According to an article from IndyStar, the ex-CEO of Angie’s list, Bill Oesterle, recently won a lawsuit against a former mechanic. In this case, Oesterle was restoring classic cars and decided to work with a boutique mechanic, which is someone who does work on older vehicles. This mechanic performed work on the vehicles and also helped him locate others to purchase. Well as it turns out, over the course of a couple of years, Oesterle was overcharged for service work on multiple rare vehicles, and some of the vehicles were misrepresented. 

Oesterle paid $50,000 for what he thought was a very rare Austin Healey 100M sports car as a coveted factory model that just needed some assembly. Come to find out, the vehicle that was purchased was not the original factory model that the alleged mechanic had promised. The mechanic told Oesterle the color, and the cost for assembly at $10,000, but sent an invoice for $130,000. But that wasn’t even the worst. In another instance, Oesterle purchased another classic car for $16,000 and was told the work would be done in two years and cost $200,000. Four years later, the job still isn’t done, but Oeseterle was left with bills totaling over a million dollars. 

What’s the takeaway?

If you’re going to hire someone to restore your vehicle, make sure to research the company or the person beforehand. Even if you did your due diligence in the beginning, due diligence is an ongoing process. If the numbers aren’t adding up, say something as soon as possible. 

If you’re a mechanic, make sure you’re managing your restorations properly. The mechanic in this case will have to pay back $7.2 million because of treble damages. Treble damages mean that if you’ve caused damage through fraud, you have to pay back three times what you took in. Treble damage statutes are found in many states, but not all.

So make sure if you’re a mechanic that you’re managing your restorations properly, and if you’re a vehicle owner, make sure you get regular updates. Do your due diligence on the company not only in the beginning but throughout the restoration process.

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