If you bought a car with a salvage title, oftentimes the first question is can you turn a salvage title into a clean title? The short answer is no, but the long answer is that there may be an option in your state to get your vehicle back on the road legally.
A clean title is a vehicle title that has no title brands, temporary or permanent, and has no other security interests outside of the vehicle owner. This means, there is no active loan or financing on the vehicle. A clean title shows the vehicle owner’s name, free of title branding.
A salvage title is a vehicle that has been damaged, wrecked, or destroyed and claimed as a total loss by an insurance company. To be considered salvage, the insurance company will deem that it is uneconomical to repair the vehicle. This means that the vehicle owner at the time of the damage or wreck did not have the vehicle repairs made and the insurance company paid out a total loss claim for the vehicle instead.
Once an insurance company pays out a total loss claim, they become the owners of the newly salvaged vehicle. Salvage vehicles are most commonly sold at insurance auctions such as Copart or IAAI. Vehicles are sold with the salvage title brand to alert the buyer of the prior claims and damages. You cannot sell a salvage title as a clean title or claim it to be a clean title.
A nonrepairable title, also known as a junk title and certificate of destruction, is similar to a salvage title and is often used interchangeably. However, a nonrepairable title is a vehicle that has been damaged, wrecked, or destroyed, claimed as a total loss by the insurance company, and has no resale value other than scrap metal or parts. This sounds similar to a salvage title, nonrepairable titles are sort of a step up in severity from salvage titles. Nonrepairable vehicles are often burned, crushed, or damaged beyond repair. These vehicles, however, can be sold for parts or scrap metal often only to certified wreckers or crushers of vehicles.
A reconstructed title, also known as a rebuilt title, is a title brand that can be applied when a salvage vehicle or nonrepairable parts are reconstructed together to create an entirely new vehicle. For example, if you had a salvage Toyota Camry, after reconstructing the vehicle with new parts, the vehicle will no longer be considered its original make/model because of the substantial changes to the vehicle. These substantial changes must be made to ensure the safety of the reconstructed vehicle.
Reconstructed vehicles are required to receive a brand new vehicle identification number (VIN) from their local DMV agency. When a vehicle is branded salvage or nonrepairable, the VIN goes into the National Motor Vehicle Title Information System as never being eligible for a title as is again. These vehicles, however, can typically be sold for parts and scrap metal depending on the type of damage.
Every state has its own laws regarding reconstructed titles and the inspection process that accompanies them. Before purchasing a salvage or nonrepairable vehicle to reconstruct, make sure that the vehicle parts are eligible for a title, it’s worth it to fix up the vehicle, and that your state allows for this process.
Looking to get a title for a salvage or nonrepairable vehicle? Visit JunkTitle.com to get started!
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Realizing that you bought a car with a lien on the title is frustrating to learn, to say the least. If the title has a lien leftover from the prior owner, why should you be stuck with it? If you bought a car with a lien on the title, don’t fret, here are some steps you can take to get a clear title in your name.
If the vehicle you bought has a lien on the title, you will be able to identify the lienholder printed on the front of the title above or below the individual owner’s name. Take note of the name of the lienholder and research their name in your state’s Secretary of State corporation database. Once you have the addresses and names of the lienholder, send by certified mail a request for lien release and a letter of non-interest.
It’s important to note that you cannot transfer a title that has an active lien on it. At this point in the title process, the prior owner is still the registered owner. If you can get their assistance in this process it will make the process more streamlined. Without the registered owner, you may have problems receiving information from the lienholder. It is illegal to contact the lienholder impersonating the registered owner to obtain a lien release.
If you can get the registered owner to obtain a lien release or letter of non-interest, they can then apply for a duplicate title in their name without the lienholder and then sign the new title over to you.
If you don’t know the prior owner or you are unable to find their information, CarTitles.com can help you find prior owner information.
First off, you should request the prior owner give you the certificate of title. When purchasing a vehicle, the vehicle certificate of title is the most important document of the process. The prior owner should obtain a lien release or letter of non-interest, then apply for a duplicate title to transfer over to you without the lien.
If you bought a car with a lien on the title, but you don’t have the prior title and can’t contact the prior owner, submit a DPPA motor vehicle records request form to your local DMV or have CarTitles.com help locate the prior owner. Not much can be done to remove the lien without the knowledge of the registered owner, the lienholder, or the original certificate of title. Before proceeding with your lien release process, you will need to attempt to contact the prior owner and pursue an alternative method of title recovery if needed.
Keep in mind that in most jurisdictions, it is illegal to sell a vehicle with a lien on the title. If the title has a lien, this means the vehicle is technically owned by the bank or lender, not the individual owner. A lien is only removed once the loan is paid back in full or released willingly by the lender. If it’s not your lien, don’t get stuck with it on your vehicle title.
Need to remove a lien? CarTitles.com makes it easy to send a request for lien release to your lienholder. Our team of title experts can help you release your lien or prepare your paperwork for any other title recovery method provided.
If you are a Wisconsin resident and don’t have sufficient evidence of ownership, a bonded title can be an effective way to get a vehicle title.
A bonded title is a brand of vehicle title that is available when the vehicle owner does not have sufficient evidence of ownership such as a signed certificate of title or prior title with their name. The vehicle owner is required to purchase a surety bond, also known as a title bond, to secure their claims to ownership. The title bond is required because, in a bonded title process, the DMV or comparable agency is essentially taking your word that you are the legal vehicle owner. The value of the bond comes into play if there is a discrepancy in ownership after the bonded title is issued.
To get started on the bonded title process in Wisconsin, make sure that your vehicle meets the above requirements and that you have obtained the necessary official documents. If your vehicle is eligible, complete the required official forms in their entirety, have them notarized, and submit them to your local Wisconsin DMV location.
After submitting, the Wisconsin DMV will look over your application and run a title search to determine the prior owner of the vehicle. If an active title record is found in the Wisconsin database, you must request the official motor vehicle records and contact the registered owner of the vehicle. If an out-of-state title record is found, the DMV will tell you the last titled state and you will have to request the motor vehicle records from that state to make contact with the registered owner. If no active title record is found, you may proceed with your bonded title application.
If no title record is found in state or out of state, the DMV will inform you of the bond value to purchase. Do not purchase a title bond until you’ve received confirmation from the DMV. Title bonds are nonrefundable. Most DMVs will calculate the value of the bond based on the value of the vehicle. While many surety bonds are valued at $10,000+, most of those bonds only cost around $100-$200 to purchase.
Once all of the above steps have been taken and the title bond has been purchased, you can then submit all of your ownership documents, official forms, and photos to the DMV to issue your bonded title.
A bonded title is a very valuable alternative method to getting a vehicle title. After receiving your bonded title, the certificate will have BONDED stamped across the top. After 5 years of having this title brand, you will be able to remove it from your title record to give your vehicle a clear title.
CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for your Wisconsin bonded title or any other title recovery method provided.
Looking for a quote for your title bond? Check out ProBonds.com!
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If you don’t own it, can you sell a car on behalf of someone else?
A car title is a legal government document. Similar to a passport or a social security card, this document is only valid if it is printed by an official government agency. You cannot print a car title online or buy one from a non-government agency.
The purpose of a car title is to prove that you own your vehicle and have proof of ownership for that vehicle. This makes it easier for you to sell or trade in your vehicle, as well as transferring ownership of the vehicle from owner to owner.
If you’re not the legal owner of the car, you cannot sell the vehicle without the owner’s signature and permission. However, if the owner signed a power of attorney, you may be able to sell the car on their behalf.
A power of attorney is a legal document that enables an individual to delegate authority over his or her financial affairs to another person. The person who holds power of attorney can handle asset transactions and banking activities on behalf of someone else. In most cases, this is done when someone is ill or incapacitated and cannot handle these tasks for themselves.
If the owner of your car has signed a power of attorney form giving you permission to sell his or her vehicle on their behalf, then you can legally sell it off as long as it’s not in violation of any other laws or contracts filed by either party involved.
Every state has a process to transfer a vehicle title from a deceased owner. This process may involve providing the owner’s death certificate and usually can only be done by relatives or with their written approval.
Looking for more information on the deceased owner title transfer process? Check out our article: What To Do If You Have A Lost Title & Deceased Owner
Oftentimes when a member of the military is deployed, they’ll leave their vehicle in the care of a trusted civilian relative. Before deploying, many military service members will provide a power of attorney to that relative to handle their assets while being deployed. If there is no power of attorney, contact the base where they are posted. The base will provide opportunities for military service members to sign documents and conduct other civilian business when necessary.
If the owner of the vehicle is in prison or jail, they likely did not have the time beforehand to sign a power of attorney. However, every prison or jail has a “signing day” typically once or twice per month where inmates are able to sign official documents needed for their outside life.
If the co-owner is an ex-spouse, the process to sell the vehicle may be a bit more difficult. If you can get your ex-spouse to sign off on the title transfer, then you will have no problems. If you cannot get your ex-spouse to sign the title or they are not able to be contacted, you can request a court-ordered title with your county clerk.
If you’re not the owner, it’s probably not yours to sell unless you have a power of attorney. The DMV won’t just take your word that you are the owner of a vehicle unless you have the signed certificate of title. Remember, selling a vehicle without a title is illegal in many jurisdictions. However, if you’re in one of these four scenarios, consider the options available to transfer the title.
CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for any title recovery method provided.
Car title scams are a scary reality. At CarTitles.com, we work with clients every day who have unfortunately fallen victim to a car title scam. A car title transfer is a legal process so one may think it’s difficult to pull off a car title scam, but it’s important to remember that scammers also know these legal processes and how to get around them without being detected.
Scammers are able to continue their scams because many people are unfamiliar with their tactics. CarTitles.com has been a trusted resource for consumer title information since 2009 and in these years of experience, we’ve gathered information on how these scams play out. Here is a list of the top 5 most common car title scams that we’ve seen over the years:
First off, it’s important to note that to get a new title it must be issued from the department of motor vehicles or an equivalent state government entity. You, as the vehicle owner, will be required to sign the official documents or sign a power of attorney.
The scam goes like this: A title company will claim to be able to get your title for you for a large amount of money, somewhere between $400-$800 usually. They won’t send you any documents to sign or a power of attorney, nor will they explain the process they are using. After you pay them this large amount of money, they’ll try to apply for a duplicate title in your name. Remember, they don’t have your legal permission to do so, so this method is automatically illegal. If the process works, they’ll keep the extra hundreds of dollars in profit and send you an illegal title that could end up being revoked. If the duplicate title scam doesn’t work, they’ll claim that your vehicle has a VIN problem and that violated their terms and conditions so they get to keep your money and you’re out of a title.
A mechanic’s lien is a legal process that allows body shops, repair shops, and towing companies to place a lien on a vehicle and sell it at auction to recover funds from an unpaid bill for the repair, storage, or towing fees.
The scam goes like this: A mechanic or tow company will claim that they can get you a title for your vehicle at a low cost. They’ll falsify documents to claim that the vehicle was brought in under legitimate circumstances and go through the entire mechanic’s lien process. Once the process is finished, you’ll either end up with an illegal title from a mechanic’s lien process or the company will auction off your vehicle to keep the profit. The worst part is because it’s a mechanic’s lien process and the company has “evidence” of the process, many times it’s their word over yours.
In the majority of cases, an abandoned vehicle is not allowed to be kept by the finder and must be towed and sold at auction. There are very few places that allow for vehicles that are claimed abandoned to be titled by the finder.
The scam goes like this: Someone will claim to be able to get you a title using the abandoned vehicle process. What will actually happen is that your vehicle will be claimed abandoned, towed from your property, and sold at auction. There are very few jurisdictions where this is not the case for an abandoned vehicle. The scammer may be the one to auction your vehicle or benefit from the auction.
Title washing is a federal offense! Title washing occurs when a title is branded with a permanent brand (such as salvage, junk, non-repairable, certificate of destruction, or parts-only) but someone attempts to remove the brand without going through the official inspection process.
The scam goes like this: Someone will claim to be able to clear your title from its permanent brand. They won’t tell you about the process they are using or they will be very vague in their description. The scammer will wash the title of the brand in any way they can, even if that means printing a fake title, and will return to you an illegal title. You may not even know it until it’s time to transfer your title to a new owner and the VIN will be flagged at the DMV. Even if you weren’t aware of this method being used, you may still be held liable and prosecuted for title washing.
The ownership transfer scam is one of the oldest scams in the book and is still seen frequently. If someone says you need to transfer ownership to get a clean title, this is a red flag.
The scam goes like this: Someone will claim to be able to clear the lien off of your title, remove the bonded stamp, or get a new name printed on the front. They’ll tell you that the easiest way for them to help is if you signed over the title so they can sign the documents personally without a power of attorney. Once you sign the title over, that’s it. The scammer can then transfer the title into their name because they have the signed certificate of title from you. If this happens, you won’t be able to report the vehicle as stolen because it’s no longer in your name.
Car title scams have been around for a while, but they continue to be popular among scammers due to the fact that they offer such a low-risk/high-reward scenario. Often, these scams are successful because they’re so unexpected and confusing for consumers. The best way to protect yourself from any type of scam is to be vigilant and educate yourself on common scam tactics.
Get expert advice for buying or selling your car with TelAdvice.com. Our team of automotive experts can provide you with tailored advice to navigate the process with confidence. Schedule your consultation today and take the first step towards a stress-free buying or selling experience.
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