As the aftermath of Hurricane Ian unfolds, a concerning trend is emerging in the automotive marketplace—flooded cars with non-repairable titles. Buyers, especially those acquiring vehicles from salvage auctions like Copart or IAA, need to exercise extreme caution to avoid potential pitfalls associated with these non-standard titles.
A recent incident underscores the complexities surrounding these flood-damaged vehicles. A customer purchased a vehicle from Copart, facilitated through a broker, only to discover that the car held a Florida Certificate of Destruction. Since the buyer was a civilian, not a licensed automotive dealership, the transaction went through a broker. Unfortunately, many consumers are unaware that acquiring a vehicle without a title doesn’t necessarily mean it’s eligible for the road.
A non-repairable title, often labeled as a Certificate of Destruction or similar designations, doesn’t reflect the actual condition of the vehicle. It indicates that the VIN has been flagged by an insurance company, making it ineligible for titling in all 50 U.S. states, along with Washington DC, Guam, and Puerto Rico. This designation isn’t open to interpretation—it is a directive stating that the vehicle cannot return to the road.
Insurance companies take this drastic step to mitigate future liabilities. If a vehicle with a history of flooding or other significant damages is allowed back on the road and an accident occurs, the insurer may face legal repercussions. To avoid potential lawsuits, insurers cancel the VIN, making it clear that the vehicle is not roadworthy.
While salvage titles technically allow for the repair, inspection, and road use of a vehicle, challenges may arise during the inspection process. Inspectors and DMV officials often scrutinize salvage vehicles, searching for any reason to prevent them from returning to the road. Even if a salvage title is obtained, it doesn’t guarantee successful inspection and road legality.
Buyers of salvage or flood-damaged vehicles face an uphill battle. The DMV and inspectors are reluctant to see these vehicles back on the road, and even minor errors or discrepancies in paperwork can jeopardize the inspection process. Some states mandate that the inspection be conducted in the state where the salvage title was issued, adding another layer of complexity.
Unlike salvage titles where success is not guaranteed, a vehicle with a Certificate of Destruction has a definitive fate—it can never return to the road. The cancellation of the VIN is irreversible, and the vehicle is forever designated as parts-only, junk, or for export.
For those seeking potential alternatives, exploring the possibility of obtaining a new VIN number is a complex but potential avenue. However, this opens up another realm of discussion, delving into the intricacies of acquiring a new VIN.
In the evolving landscape of flood-damaged vehicles and non-repairable titles, staying informed is paramount. A comprehensive understanding of the complexities involved can save buyers from unexpected challenges and ensure that the vehicle they acquire aligns with their intended use.
It’s essential to note that this information does not constitute legal advice. For tailored legal guidance specific to your situation, consult with an attorney.
Visit our website junktitle.com for in-depth information, insights, and potential solutions regarding non-repairable titles and the intricacies of acquiring a new VIN number. Stay informed, stay cautious, and make empowered decisions in the realm of flood-damaged vehicles.
Order Bonded Title Documents
If you are a North Carolina resident, a bonded title can be an effective way to recover your vehicle title if you don’t have sufficient evidence of ownership.
A bonded title is a type of title recovery method that requires the purchase of a surety bond, also known as a vehicle title bond, to secure the ownership of the vehicle. This is because, in order to receive a bonded title, you must have a significant lack of proper documentation. The DMV in your state is essentially taking your word that you are the vehicle owner. The vehicle title bond provides security for the DMV to assign the ownership in the event that there is an ownership discrepancy after the bonded title is issued.
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Before beginning your bonded title process, make sure that your vehicle meets the eligibility for a bonded title.
If your vehicle meets the eligibility requirements of a North Carolina bonded title, begin the application process by completing the Affidavit of Facts (MVR-92H) and the Application for Title (MVR-1). After completing the Affidavit of Facts, this document must be notarized.
Inspection
The bonded title process requires that all vehicles are inspected prior to the title being issued. To schedule your inspection, contact the NCDMV License & Theft Bureau. Bring all forms and documents for your application to this inspection. Once your inspection is complete, the officer who inspected the vehicle will complete the Report of Inspection (LT-270).
After your initial inspection, North Carolina requires an additional inspection for safety and emissions. To schedule your inspection, contact your nearest Inspection Station.
Title bond
Once your vehicle has been inspected and approved to move on to the next step, the NCDMV will tell you the value of your vehicle and of the bond to purchase. This value is typically based on the book value of the vehicle. Most title bonds are required to be 1.5x the value of the vehicle, however, that doesn’t mean it costs that much to purchase. Most title bonds cost around $100-$150 for average-value vehicles. Your surety provider will complete the Indemnity Bond firm (MVR-92D) upon purchasing your surety bond.
Once you’ve completed the official documents, passed inspection, and obtained your title bond, submit all of your documents and any state title fees to the NCDMV office in your county. They will process your application and return to you a bonded title in your name.
After 3 years of having BONDED stamped on your vehicle title, the bonded title brand will dissipate and you will have a clean North Carolina title in your name.
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+
If you are a Colorado resident, a bonded title can be an effective way to recover your vehicle title if you don’t have sufficient evidence of ownership.
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If your vehicle meets the eligibility requirements of a Colorado bonded title, begin the application process by contacting your county motor vehicle office to ensure you are eligible for a bonded title.
The bonded title process requires that all vehicles are inspected prior to the title being issued. To schedule your inspection, contact a certified P.O.S.T. inspector in your area. Once your inspection is complete, the officer who inspected the vehicle will complete the Certified VIN Inspector Form (DR 2704).
Records request
Before a bonded title can be issued, Colorado law requires the applicant to make every effort to contact the registered owner. Submit vehicle records request to the Colorado motor vehicle office in your state. If the vehicle was not last titled in Colorado, you must also submit a vehicle records request to that state.
Once you receive the vehicle record information, send a certified letter to the titleholder requesting a title transfer. This letter must be sent by certified mail and be sure to keep the green return receipt for future use.
Bond statement
Once you’ve contacted the prior owner and obtained your green return receipt, complete the Bond Statement Guide Affidavit (DR 2394) to explain to the county motor vehicle office why you don’t have the proper ownership documents and need to obtain a title. Also, complete and sign the Application for Title (DR 2395).
DMV approval
Once you’ve completed your inspection, received your green return receipt, and completed the required paperwork, bring all of these documents plus your identification to the county motor vehicle office for approval and to determine your bond amount.
Bond purchase
The bond value is typically based on the book value of the vehicle. Most title bonds in Colorado are required to be 2x the value of the vehicle, however, that doesn’t mean it costs that much to purchase. Most title bonds cost around $100-$150 for average-value vehicles.
Once you’ve completed the official documents, passed inspection, and obtained your title bond, submit all of your documents and any state title fees to the county motor vehicle office. After receiving your application, the state of Colorado will review it and will issue you a new bonded title.
After 3 years of having BONDED stamped on your vehicle title, the bonded title brand will dissipate and you will have a clean Colorado title in your name.
If you are a Vermont resident, a bonded title can be an effective way to recover your vehicle title if you don’t have sufficient evidence of ownership.
A bonded title is a type of title recovery method that requires the purchase of a surety bond, also known as a vehicle title bond, to secure the ownership of the vehicle. This is because, in order to receive a bonded title, you must have a major lack of proper documentation. The DMV in your state is essentially taking your word that you are the owner of the vehicle. The vehicle title bond provides security for the DMV to assign the ownership in the event that there is an ownership discrepancy after the bonded title is issued.
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If your vehicle meets the eligibility requirements of a Vermont bonded title, begin the application process by completing the Vermont Registration Tax & Title Application.
VIN verification
VIN verification requires a physical inspection of the VIN of the vehicle. This is an official process and must be completed by an authorized agent such as a county Sherrif or military officer. VIN verification is required to ensure that the vehicle is permitted to be titled under federal and state laws. Certain VINs or replacement parts may be found in the NMVTIS database and are unable to be titled if the vehicle was rebuilt or previously damaged,
Once your vehicle has been inspected and approved to move on to the next step, the county tag office will tell you the value of the bond to purchase. This value is typically based on the book value of the vehicle. Most title bonds are required to be 1.5x the value of the vehicle, however, that doesn’t mean it costs that much to purchase. Most title bonds cost around $100-$150 for average-value vehicles. Before submitting, have your Motor Vehicle/Vessel Title Bond form notarized. Check with your bond provider to see if they can notarize your form.
Once you’ve completed the official documents, verified your VIN, and obtained your title bond, submit all of your documents, state title fees, and a copy of your bill of sale to the Vermont Department of Motor Vehicles. They will process your application and return to you a bonded title in your name.
After 3 years of having BONDED stamped on your vehicle title, the bonded title brand will dissipate and you will have a clean Vermont title in your name.
If you are a New York resident, a bonded title can be an effective way to recover your vehicle title if you don’t have sufficient evidence of ownership.
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If your vehicle meets the eligibility requirements of a New York bonded title, begin the application process by completing the Vehicle Title Application (MV-82), Odometer And Damage Disclosure Statement (MV-103), and Statement Of Transaction (DTF-802).
The state of New York requires the prior owner to be contacted before a bonded title can be processed. Submit a DPPA request to the New York State DMV or your local DMV office to request the current registered owner information. Using that information, you must send a letter via certified mail with a return receipt alerting them of your intention to obtain a bonded title. Be sure to keep the green return slip for future use. If the letter is returned undeliverable, do not open it, keep it sealed as it will be needed for future evidence.
A written statement is required for you to explain how the vehicle came into your possession. This letter should state the seller, the date of the transaction, the purchase price, and vehicle information. This written statement must be notarized.
Once you’ve completed the required documents, contacted the prior owner, and have your notarized written statement, visit your local DMV with all of the documentation. In addition, bring any other documents related to the vehicle such as a bill of sale, a printed photo of your VIN, and fees for tax, title, and registration. The DMV agent will review your documents and give you a Sales Tax Receipt (FS-6T).
Make copies of all documents for your records, then send all documents plus the Sales Tax Receipt (FS-6T) to the New York State DMV Title Bureau via certified mail. The Title Bureau will review your application and will either send you a title or ask you to post a bond.
If you are asked to post a bond, purchase your title bond from a surety bond provider. New York requires title bonds to be 1.5x the value of the vehicle. This value is typically based on the book value of the vehicle. Most title bonds are required to be around 1.5x the value of the vehicle, however, that doesn’t mean it costs that much to purchase. Most title bonds cost around $100-$150 for average-value vehicles.
After purchasing your bond, submit your bond information to the New York DMV per the instructions in their letter to you. When approved, the New York DMV will mail you your bonded title.
After 3 years of having BONDED stamped on your vehicle title, the bonded title brand will dissipate and you will have a clean New York title in your name.
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