Even before hurricane Ian, our firm received hundreds of calls every day about vehicles that were purchased at salvage auctions that were flooded that are no longer eligible for a title. Many of these vehicles have been purchased from auctions like Copart or IAA and they may have been sold two or three times after the auction to unwitting buyers who purchased a vehicle without a title and didn’t know that these vehicles are no longer eligible for a title. Just because a car can be fixed or is in good condition, doesn’t mean that it can ever be titled.
Many of these cars have VIN numbers that have been entered into the federal database called the National Motor Vehicle Title Information System (NMVTIS). These VIN numbers have been effectively canceled as being eligible for titling or registration ever in the future. It’s an irreversible process. Now, look at these cars on the screen. You see this one in front of you obviously had water. You know up into the engine compartment but even these ones farther back may only have water up to the wheels. Some of these cars even if they can be repaired, or physically look okay are never able to be titled or registered on the road again. Once an insurance company pays a claim of a total loss, which normally will happen that vehicle now has to be sold through a salvage auction. And a lot of times in the past you may have been able to buy and sell cars from salvage auctions fix them up and get a salvage title. Not so easy in the future. Many of these cars have had their titling privileges revoked for that VIN number, here’s why.
This car obviously is going to have major rust and corrosion in major body panels in the mechanical components of the vehicle. The engine, transmission, drive train, brakes, and shocks. Now, look at this one right behind the stop sign. It only comes up about halfway above the center of the wheel, however that water made its way into major components like the antilock brake sensors into the subframe, into the fuel components, much of the wiring and many of the computers are actually under the seats of the vehicle. So a lot of that mechanical and electrical equipment has become corroded or will be corroded in the future. Because of that, the repair of the vehicle might not seem that significant. You might look at this vehicle, it gets dried off it gets washed, and maybe the carpets are replaced. Maybe some of the underneath of the vehicle’s subframe components are cleaned or repaired. But the vehicle will never be the same. It may be a year maybe two years down the road when the components that had saltwater intrusion in between the spot welded joints in between where A-frame and suspension components are bolted together, it’s gonna start rusting. Right. And even if for some reason, the vehicle is allowed to be titled the vehicle is never going to survive past a few years. So you want to avoid these vehicles at all costs. Now, sometimes you won’t even know. This is the case sometimes, you’ll see a vehicle like even this one in the front, the gray one. It looks like a Honda accord. Maybe presented and it looks like a perfectly fine vehicle. The water’s not going to do any physical damage that you’ll be able to see. You might notice maybe on the inside some musty smell or some dampness inside the doors. But it may not seem like a significantly damaged vehicle. However, the title is going to show salvage.
So here’s what you need to do. Run a history report. Now, don’t use Carfax. Don’t use any of these VIN checkers that you find online because they’re just really a $15-$20 throwaway of your money. They’re not a hundred percent accurate. In fact, if you look at the bottom of the disclaimers of many of these sites, it’ll tell you that it’s missing a lot of information, it’s not 100% accurate. The only way to get this information is directly from the DMV department of motor vehicles or the titling authority in your state, have them check it through the national database, not just their own database, the national database to see if this vehicle had any kind of flood insurance claim around the time of hurricane Ian. Last part of 2022 or the beginning of 2023. If the vehicle had a flood claim in Florida don’t buy it. It doesn’t matter how cheap it is. It doesn’t matter how good of a deal you can get. The car is not going to be worth what it’d be reasonably expected to pay for a normal vehicle even if it’s a little bit more money. In fact, if you look at this Honda accord you might not think it’s going to do a lot of damage but when water seeps into this door panel, there are things inside there like your power window motors, your power door lock actuators, all the wiring that goes into those. And that can connect back to things like computers and sensors. It’s going to have water that will soak up into that door panel and get into those parts, Even if it doesn’t go at an actual water level, it will seep up using capillary action into absorbent parts, even in the seats. Even inside the engine compartment, it’s going to get into things like the power steering rack. That’s going to be at or below this level of the water and those things over time, will get the fluid saltwater into the different components, and it’s going to ruin it.
If you add up all the small parts you need to replace it’s going to be more than the value of the car. What’s interesting is if you look at this Honda accord in the front, ironically, this car already had a body repair. If you look at this front fender it’s a slightly different color gray than the back door. And even this seam here between the pillar, this is a slightly different color gray. This was a car that has had this fender at least repainted and may be replaced and the paint didn’t match a hundred percent or maybe it matched when they did it. But over time, it faded at a different rate than the rest of the car. So ironically this is already a car with a collision repair or body repair and now it’s flooded.
So these vehicles are going to have major title problems in the future. A lot of times what happens with clients is they’ll buy these vehicles, they’ll fix them up, then they’ll go to try to get a title and find out you can’t get one. Many of these cars when they’re sold at Copart, the buyer at Copart who’s a licensed dealer, may know or should have known that the car is not eligible for a title, but you as a consumer who buys it later, do not have access to that auction report or to that auction transmittal to know that this vehicle can never be titled. So the short answer is don’t buy one of these cars, it’s more trouble than it’s worth whatever thousands you think you’re saving on buying the car. It’s going to cause more than that to repair hidden damage and not count the fact that the resale value will always be less than a vehicle with a clean title.
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 question comes up frequently: what is the difference between a kit car, assembled car, and a replica car?
A kit car is a vehicle that is manufactured as parts in an assembled kit from a company. You may still need to purchase other parts such as the frame and chassis. After purchasing the kit car, you assemble it yourself, then present the new vehicle to the DMV for a new VIN and title. Typically, the VIN is not provided when purchasing a kit car.
A kit car is an umbrella term for assembled and replica cars.
An assembled vehicle is a type of kit car that has a body that does not resemble any particular year, make, or model. These vehicles are completely customized, think along the lines of the “Batmobile”. An assembled car that was manufactured without a kit from a company is still considered to be a kit car due to the nature of its assembly.
An assembled vehicle must meet all safety and emissions standards of the year that it was manufactured. All of the safety and emissions features that go into a new car will be required in this vehicle (anti-lock brakes, airbags, etc.)
A replica car is another type of kit car that has a body that is built to resemble and be a reproduction of a specific year, model, and make. These kits may include original parts, but can also be built with new or reconditioned parts.
Replica cars, unlike assembled cars, do not have to meet current safety and emissions standards. Replica cars must only meet the safety and emissions standards of the year the original vehicle was manufactured. However, this may pose an issue when it comes time for title and registration depending on your state.
Remember, even if you made your car without a kit, it’s still considered to be a kit car, if manufactured by you. When titling and registering kit cars, make sure to accurately label your particular type of kit car.
Carvana, the publicly traded automotive retailer, has been under scrutiny in recent times due to emerging issues related to vehicle titles. In this update, we delve into the latest developments surrounding Carvana, shedding light on crucial information that may impact investors and customers alike.1. Carvana’s Financial Moves: Extending Credit Line and Inventory Financing AgreementIn a recent Form 8K filing, Carvana disclosed key financial maneuvers that may have implications for its operations. The company renewed its credit line with Ally Bank, backed by Deutsche Bank. This credit line, amounting to a staggering $2 billion, is earmarked for financing the used car inventory, utilizing a floor plan or floor line of credit. This financial tool provides dealerships with a line of credit to finance their on-lot inventory.The extension of this credit line by Carvana for another 18 months raises questions about the potential impact on the company’s financial health. A notable risk associated with such arrangements is the temptation for dealerships to engage in what’s known as “floor plan float,” utilizing the line of credit for purposes other than financing the inventory. While there’s no direct evidence that Carvana is involved in such practices, it’s a common challenge faced by dealerships running low on cash.2. Potential Bankruptcy Concerns: Insights from Investment AnalystsSeeking Alpha, a prominent investment platform, has raised concerns about the possibility of Carvana facing bankruptcy. The analysis points to challenges stemming from shifts in the used car market. The recent boom in the used car market, driven by production backlogs and supply chain disruptions, is now facing a contraction in demand. Carvana, with its high inventory and growing financial debt, may find itself navigating through declining margins. The article suggests that Carvana’s business model, while promising in theory, may struggle to generate profits, especially with rising interest costs.3. Securities Class Action: Law Firms Circling for InvestorsLaw firms are circling around Carvana, seeking investors interested in potential Securities class action lawsuits. Allegations include challenging Carvana’s statements regarding its growth, with claims that the company omitted crucial information about issues related to documentation, registration, and title processing. The lawsuits suggest that Carvana’s statements were misleading, potentially affecting its ability to continue business and attracting government investigations.4. Anecdotal Evidence: Persistent Title Issues and Client InquiriesDespite ongoing developments, anecdotal evidence suggests that title issues related to Carvana are still persisting. Recent client inquiries reveal ongoing challenges with title problems, indicating that the issues may not be completely resolved. This anecdotal evidence raises questions about the chronic nature of Carvana’s title problems.Making Informed DecisionsWhile the situation with Carvana continues to unfold, investors and customers should stay informed about the developments and potential risks associated with the company. The extension of credit lines, concerns about bankruptcy, and securities class actions are all factors that can impact the company’s future.It’s essential for stakeholders to conduct their research, consider multiple perspectives, and stay updated on the latest news. As the situation evolves, making informed decisions becomes paramount. This update aims to provide a snapshot of the current landscape surrounding Carvana, allowing individuals to form their conclusions based on the available information.
Getting a bond for a vehicle title often raises questions about the associated costs. There’s a common misconception that one needs to come up with a significant sum, deterring individuals from pursuing a bonded title. In this article, we aim to demystify the actual cost of obtaining a bond for a vehicle title, providing clarity on the process and expenses involved.
The cost of a lost title bond is not a direct reflection of the vehicle’s value; instead, it’s a fraction of the bond amount required. When obtaining a bonded title, the bond needs to be in the range of one and a half to two times the value of the vehicle. However, the actual payment is a nominal fee, typically around $100 to $200, regardless of the bond amount.
Let’s break it down with an example: If the vehicle’s value is $6,000, and the bond amount required is one and a half times the value ($9,000), the individual may only need to pay around $100 to $150 for the lost title bond.
Misunderstandings about the cost of bonded titles often lead individuals to explore alternative, and sometimes riskier, methods to obtain titles. It’s crucial to dispel these misconceptions and empower vehicle owners to make informed decisions.
Different states may have specific requirements for obtaining bonded titles. Let’s look at insights from Michigan and Illinois:
For those considering a surety bond, platforms like ProBonds.com offer a streamlined process for obtaining quotes based on the vehicle’s value and location. This ensures a hassle-free experience in acquiring the necessary surety bond.
In scenarios where a surety bond is not feasible, individuals can explore court order titles, a process that is more straightforward than it may seem. It provides an alternative route to secure a legal title for the vehicle.
Understanding the actual cost of obtaining a bond for a vehicle title is crucial for making informed decisions. By dispelling myths and clarifying the process, individuals can confidently pursue the most suitable path to secure their vehicle titles.
For further information and assistance, visit our website cartitles.com. Feel free to share your thoughts and questions in the comments section below. We’re here to help you navigate the complexities of vehicle titling with clarity and confidence.
Fraud within a company can manifest in various forms, and one insidious tactic is the utilization of ghost vendors. In this case study, we delve into a real-life example that occurred at a car dealership in the charming town of Toms River, New Jersey. This incident sheds light on the importance of vigilant oversight and thorough verification processes in preventing financial losses due to fraudulent activities.
The Ghost Vendor Scheme Unveiled
Situated in the picturesque setting of Toms River, a car dealership fell victim to a calculated scheme orchestrated by an employee entrusted with marketing and advertising responsibilities. This individual, holding a managerial position, took advantage of their role to engage in a ghost vendor scheme with a unique twist.
Instead of outsourcing legitimate marketing agencies for the dealership, the employee fabricated non-existent entities—limited liability partnerships and shell companies. Invoices were generated, billing the dealership for services purportedly rendered by these phantom companies. Astonishingly, the dealership ended up paying a staggering $1.3 million to these fictitious entities.
Cloaked Connections and Online Payment Tactics
To further obfuscate the fraudulent activities, the employee utilized an online payment service that allowed funds to be transferred into personal accounts. This not only concealed the connection between the employee and the ghost companies but also added an additional layer of complexity to the financial trail.
The subsequent complaint shed light on this intricate web of deceit, unraveling the extent of the financial losses suffered by the dealership. This case serves as a stark reminder that when entrusting individuals with financial responsibilities, a company must implement stringent verification processes and periodic audits.
Vigilance as a Safeguard: Spot Checks and Audits
The Toms River car dealership scenario underscores the necessity for companies to exercise due diligence in verifying the legitimacy of their vendors and scrutinizing financial transactions. Spot checks and audits can act as effective tools in preventing such fraudulent activities.
One noteworthy tactic employed by fraudsters is creating entities with names similar to legitimate vendors. By conducting quick Secretary of State inquiries, companies can swiftly confirm the authenticity of vendors, ensuring that payments are directed to genuine service providers.
Protecting Assets and Maximizing Returns
The financial impact of corporate fraud extends beyond the immediate losses. In the Toms River case, the dealership not only lost $1.3 million but also missed out on potential returns on investment that could have been derived from that sum. A proper audit and verification process could have safeguarded the assets and profitability of the company.
Companies are urged to trust their employees but verify their actions, implementing robust internal controls to thwart fraudulent schemes. In doing so, they not only protect their financial resources but also secure the foundation for sustained growth and success.
Corporate fraud is an ever-present threat, but with a proactive approach to oversight, companies can minimize risks and fortify their defenses against such clandestine activities. Stay vigilant, verify diligently, and protect your assets from being taken to the cleaners.
Tell us about your vehicle and we'll direct you to a title recovery method that matches your scenario.
"*" indicates required fields
