If you’re the borrower on a defaulted automotive loan, meaning you’re behind on monthly payments, be aware that lenders are starting to ramp up their recovery tactics to recoup their funds.
As an example, toward the end of 2022, Wells Fargo Automotive began offering incentives to repo companies to prioritize the repossession of their vehicles, according to an article from Auto Finance News. Wells Fargo is offering $500 per vehicle to repo companies amid a shortage of drivers and other personnel.
Frankly, there aren’t enough repo agencies available to recover their vehicles, so banks are putting bounties out to have their vehicles repoed first. So if you have a vehicle with a loan in default, be aware of this, but also consider that you may be in a good position to negotiate the remaining cost with your lender. Your lender doesn’t actually want your car, they just want the money. Oftentimes under similar circumstances, lenders are more willing to negotiate the amount for a lien release rather than be at risk of never recovering that vehicle.
Even if a vehicle is repoed, there are many costs involved. First, the $500 incentive, then the transportation fees, and auction fees which can add up to several thousands of dollars. So in lieu of that hassle, lenders often see the value in negotiating rather than paying thousands of dollars to repo a vehicle in unknown condition or an unknown location.
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+
In today’s discussion, we aim to address two of the most common questions that frequently arise regarding the Vermont registration and bill of sale process for vehicles. We’ll delve into whether you can utilize this process for vehicles in disrepair or as mere shells, and we’ll decipher the intricacies of tax calculations, exploring ways to potentially reduce your tax burden.
Before we dive into the specifics, it’s essential to note that Vermont’s registration process is just one of several methods to obtain a title. While it might seem like a loophole, it may not always be the most optimal solution. Explore all available methods and weigh the pros and cons before settling on the Vermont process.
Let’s focus on the first question: Can you use Vermont registration for a vehicle that’s a shell, not roadworthy, or in parts? The key lies in the Vermont form VD119, the official document for this process. The critical clause to pay attention to is where the owner certifies that the vehicle is “properly equipped in good mechanical condition.” If your vehicle is a mere shell, in disrepair, or lacking essential components, it doesn’t meet the condition requirement. Vermont takes your word for it, but any triggers indicating otherwise could complicate your application.
Attempting to register a project car or a vehicle in non-complete condition might lead Vermont DMV to flag it. The process hinges on the vehicle being in good mechanical condition, and if this condition is not met, you might face challenges during inspection or even the rejection of your application.
Moving on to the second question, determining the tax you owe is a crucial aspect of the Vermont registration process. The Vermont Department of Motor Vehicles specifies that the tax is due at the time of registration, based on either the purchase price or the NADA clean trade-in value—whichever is greater.
Navigating Vermont’s registration process involves understanding and adhering to the condition requirement and calculating taxes based on the “whichever is greater” principle. Whether you choose to engage professional assistance or embark on a DIY journey, thoroughly acquaint yourself with the process through instructional videos and stay informed about updates.
At CarTitles.com, we’re here to be part of your solution, providing information, advice, and assistance as needed. Remember, proper knowledge and compliance can streamline the process and save you from potential setbacks. Feel free to share your thoughts, questions, or experiences in the comments, and stay tuned for more informative updates.
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.
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.
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