If you’ve been following our Car Titles YouTube channel, you might have caught us on a recent episode of The People’s Court. The case was a stark reminder of the potential pitfalls when purchasing a vehicle without a title. Let’s delve into the details of this intriguing case and the valuable lessons it holds for all car buyers.
The plaintiffs had bought a vehicle, only to realize later that the seller hadn’t provided a title; instead, they were handed a receipt or bill of sale. Facing difficulties obtaining a title, they sought our assistance at Car Titles to navigate the paperwork. It turned out to be a case of a vehicle with a fake VIN number and an undisclosed lien.
Our team conducted thorough research, uncovering the discrepancies in the VIN number and the existing lien on the vehicle. Armed with this information, the plaintiffs decided to take the matter to The People’s Court, where they showcased the documentation and forms we provided during their application to the DMV.
The defendant was found liable for the sale of a vehicle with a lien, and the judge expressed clear displeasure at the attempt to sell a car under such circumstances. The case underscored the importance of robust documentation when making a vehicle purchase, emphasizing the need for a buyer to secure a copy of the seller’s identification.
Our role in assisting the plaintiffs caught the attention of The People’s Court producers. We communicated with them afterward, providing additional information and documents related to vehicle titling. This collaboration opens doors for potential future engagements where we can contribute our expertise in vehicle records and titling.
If you’re contemplating purchasing a vehicle without a title, think twice. The risk involved in such transactions is substantial, and any perceived savings may vanish if you encounter obstacles in obtaining a title. It’s a lesson well-learned from a real-life courtroom drama – always prioritize securing a valid title when making a vehicle purchase.
The call is coming from inside the house! Even DMV employees can get involved in vehicle title fraud. Here’s an article out of Illinois where a DMV employee allegedly forged a vehicle title application using government resources.
According to the case, allegedly this employee of the Illinois Secretary of State was trying to get a title for a 2020 Land Rover that was actually a stolen vehicle. This person and a colleague that helped used a fake VIN to run a VIN check against the SOS computer database to avoid official detection. Unfortunately for them, the alleged scheme was uncovered.
This is a very isolated event, however, it does raise cautionary flags. If you’re looking to get a title for a vehicle through a non-standard method (e.g. bonded title, loophole, court order, etc.), you’ll want to ensure that you or the person doing the process for you is using completely legitimate means.
There are many ways to get a vehicle title; some are legitimate, and some are not. And when an improper method to get a title is used, you may find yourself in a position where the title gets revoked, you face legal consequences or fines, or both. In some instances, you may not even realize that the title has been revoked until you go to apply for a new one in your name. You may not have done anything wrong in the process, but a prior owner could’ve done the process improperly in the past, resulting in your current title being revoked.
So, make sure that the method to obtain your vehicle title is legitimate for your vehicle and for your situation. Properly obtaining your vehicle title will provide you with security in that title, knowing that it won’t be revoked at a later date.
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+
It’s been a few months since Hurricane Ian wreaked havoc across Florida, and now the vehicles that were damaged as a result are hitting the market. We’ve had hundreds of inquiries from people who have recently purchased these vehicles, only to find out that their new vehicle was issued a certificate of destruction. One caller purchased 14 vehicles from an auction, only to find that each one was issued a certificate of destruction. So, what does this designation mean? What can and can’t you do with these vehicles?
A certificate of destruction is issued by a government agency to declare that the vehicle is no longer eligible for road use. In Florida, they call this a certificate of destruction but is also known in other states as a non-repairable, junk, or parts only.
A certificate of destruction is not a vehicle title, even though it looks like one. A vehicle title designates the vehicle owner, while the certificate of destruction designates the vehicle to be destroyed or dismantled. This designation is taken very seriously by both state and federal government agencies. In fact, in Florida, violating the certificate of destruction by selling, transporting, or delivering the vehicle without making proper notifications is a third-degree felony.
If a vehicle has been given a certificate of destruction, nothing shall be applicable. A certificate of destruction cannot be transferred or changed or ever roadworthy again. Nothing is applicable to the vehicle after it has obtained a certificate of destruction, other than complete destruction.
The certificate of destruction may be issued by the government, but it’s the insurance companies who make the recommendation. This is because these vehicles have incurred significant damage from floods or accidents and the insurance companies who paid the claim do not want a damaged car to go back on the roads, even if it was repaired. Just because a repair is made doesn’t make the vehicle safe for regular use.
For example, a vehicle damaged by hurricane Ian may have significant flood damage that isn’t readily apparent. If ABC insurance company approves the vehicle for road use after the claim has been paid, and the flood damage corroded the brake line causing an accident, the vehicle owner can sue ABC insurance company for putting the car back on the road in the first place. The insurance companies want to ensure that no one gets hurt and that they don’t get sued for damages so they’re playing it safe by issuing a certificate of destruction.
We’ve been getting hundreds of calls daily from people looking to purchase these types of cars at insurance auctions like Copart and IAA. Even if the car looks to be in good condition from the outside, remember that water damage isn’t always visible. If the car was crashed previously, you may see the physical repairs, but water and electrical damage can be easily hidden. If you’re looking to purchase a vehicle from an insurance auction, make sure to understand that particular vehicle’s history. Many people buy cars from auctions all the time to flip and sell for a profit, but that can’t happen if the car has a certificate of destruction.
Before buying a vehicle from an insurance auction, check the VIN through the National Motor Vehicle Information System (NMVTIS). This is a national database for all 50 states that shows which VINs are out of commission due to destruction designations.
If you’re on the lookout for a vehicle from a Florida auction, be aware that these vehicles that were issued a certificate of destruction from hurricane Ian are showing up in the marketplace. Before you buy, check the VIN with the NMVTIS so you don’t get stuck with a vehicle that you can never put on the road.
Recently, another example of a massive auto title fraud scheme was brought to light, this time out of Pennsylvania. According to this article, the Pennsylvania Attorney General busted a massive auto title fraud scheme that included 21 businesses, 5 residents, and about 30 people. So what happened?
According to the article, allegedly they were forging documents and using improper methods to get titles for vehicles that should not have been titled at all. Some of the vehicles were stolen, some had active liens, some had prior owners that were objecting, and some were actually salvage vehicles that had the VIN swapped to hide the salvage brand. All of this is considered to be title washing. The article mentions that hundreds, if not thousands of titles were issued and many of them will be revoked.
The moral of the story is that if you’re looking to get a new title, don’t use a sketchy or illegitimate process to get one. Specifically, be cautious about using the services of a title company that says they can get you an actual title certificate. Many title companies will say, “Give us $600 and we’ll get you a title, no questions asked, don’t worry about it”, and if you’re looking for relief from a complex situation, this may sound great, when in reality it will probably cause you more trouble down the road. The problem with this quick fix is that oftentimes these companies do not disclose the process used to get your title. This means, that they could be using one of the fraudulent methods from above, like the case in Pennsylvania. Even if you were part of this unknowingly, you’re still going to be on the hook for it because the title will be in your name. You may have not gotten your hands dirty, but you’ll be the one who has to answer for it as the vehicle’s owner.
If you’re looking for help with a complex title situation, hiring a title company may be beneficial, but it’s crucial for you to thoroughly understand the process before agreeing. Make sure to read over any documents that the title company has you sign to avoid agreeing to something that you’re not comfortable with or sure about. The paperwork has your name on it, and if the title company uses a fraudulent practice, you don’t want to be left holding the bag while they make off with your money.
Title documents are very serious government documents that are heavily scrutinized by state DMV agencies and the DOJ. Remember that when you are applying for a vehicle title, you are swearing under the penalty of perjury that it is being done correctly. If it’s done incorrectly, it could get you into a lot of trouble or you could lose your vehicle.
As we head into 2023, supply chain issues continue to affect the automotive business, but in a new way. Here’s an article from the Wall Street Journal talking about a shortage of title paper for car titles. You may think, why not just print a car title with a laser printer on standard paper? However, it’s not that easy.
Car titles are printed on security documents, similar to money or other documents like checks and birth certificates. This special paper has hidden security features like watermarks, woven threads, and specific color patterns to avoid duplication and forgery. Because this type of paper is so secure and specific, car title printing is backlogged until the security paper becomes available. Some states are having drivers wait months for their titles to be printed.
In the meantime, newer vehicles often have electric titles rather than paper titles. However, if you don’t have a newer model vehicle, you’ll run into problems if the vehicle is being transferred to another state, going to a lienholder, or if you’re planning to sell it or trade it in.
Backlogs created by supply chain issues aren’t just for the parts, these backlogs also impact things that are invisible to most buyers. Title documents are key to owning a vehicle. If the DMV has problems printing these documents, drivers will have to wait to get the right paperwork or to get their lien released from their vehicle.
Tell us about your vehicle and we'll direct you to a title recovery method that matches your scenario.
"*" indicates required fields
