Can I Title An Export Only Vehicle?

What Does “Export Only” Mean?
One common inquiry our sales department receives revolves around vehicles labeled with an “export only” title. These vehicles often appear on platforms like Copart or IAA, sparking confusion among buyers. While they may bear the label “clean title export only,” it’s crucial to understand the implications behind this designation.

The Export Only Conundrum
Many assume that a “clean title export only” vehicle is in good condition since it carries a clean title. However, the reality is quite different. The “export only” designation indicates that the vehicle can only be utilized for export purposes, not for domestic use. But why label it as “clean title export only”?

Deciphering the Label
The distinction is necessary due to regulatory constraints. Customs regulations prohibit the export of salvage or junk vehicles in one piece. Attempting to export such vehicles would result in rejection during inspection. Hence, insurance companies use the “export only” label to facilitate the removal of vehicles from the country’s market.

Navigating the Restrictions
While these vehicles may have clean titles, they cannot be titled or registered within the US. Every state, including Guam, Puerto Rico, and Washington DC, prohibits their registration. Despite appearances, attempting to title such vehicles domestically will lead to rejection by the DMV or similar authorities.

The Pitfalls of Export Only Titles
Buyers must be wary of the implications of purchasing vehicles with “export only” titles. Despite aspirations to register them domestically, these vehicles are bound for export only. Attempting otherwise could lead to complications and legal hurdles.

Challenges for Exporters
Even for exporters, navigating the export of salvaged or junk vehicles can be arduous. Customs regulations often necessitate dismantling vehicles into component parts for export. This process can be time-consuming and financially burdensome.

Beware of Salvage Titles
Even salvage titles may pose challenges for exporters. Despite appearing salvageable, some vehicles may be designated as “parts only” in federal records. Exporters should exercise caution when considering salvage vehicles for export.

Conclusion
Understanding the nuances of “export only” titles is essential for both domestic buyers and exporters. While these vehicles may seem appealing, their limitations can lead to significant complications. It’s crucial to thoroughly research and comprehend the implications before engaging in any transaction involving such vehicles.

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