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What’s a VIN Verification?

A VIN verification is a very important process that verifies that the VIN listed on a vehicle title is the same VIN listed on the physical vehicle. Many states have adopted a VIN verification policy when titling vehicles and those state DMVs take VIN verifications very seriously. 

Why do you need a VIN verification?

A VIN verification is a good idea for everyone, regardless of if their state requires it or not. Depending on your state’s requirements, this may be performed by a notary public, DMV employee, member of law enforcement, or other authorized individuals. By performing a VIN verification, you’re ensuring that you’re receiving the correct VIN on your title and that the VIN is eligible for a title.

If the VIN on your vehicle is not the VIN that matches the vehicle title, that’s a big problem. This means that your title is invalid and that corrections must be made. On top of the corrections, there will be additional steps to take to further prove ownership of the vehicle which now has no title. If the VIN is correct but found in the NMVTIS database, your vehicle is likely not eligible for a title. VINs entered into the NMVTIS database are usually considered junk or may even be reported stolen. 

The VIN verification process may seem tedious, but it’s a very necessary part of the vehicle title process. Some states don’t require a VIN verification or may waive the verification, but we recommend always performing your own VIN verification if one is not required. 

A Comprehensive Guide to Vehicle Titles

A vehicle title is a legal document that proves ownership of a vehicle. While most vehicles require a title, obtaining a vehicle title isn’t necessarily a cookie cutter process. There are a variety of methods to obtain a vehicle title, each with its own set of requirements from the owner and reasons for being used.

Clear title

A clear title is one in the owner’s name that doesn’t have a lien or third party that could attempt to claim ownership. With a clear title, the owner is free to sell the vehicle if desired.

Bonded title 

If you do not have ownership documentation for a vehicle, you may purchase a surety bond to obtain a bonded title. The surety bond is equal to the value of the vehicle and covers any future claims in the event that a valid ownership claim to the vehicle comes forward in the future. Bonded titles are stamped “Bonded” for a period of 3-5 years before eventually coming off of the title where the owner can then apply for a clear title. 

Salvage title 

When a vehicle incurs major damage, the title may be designated as a salvage title. Typically insurance carriers will determine if a vehicle requires a salvage title, often when more than 60% of the vehicle’s value is lost. However, even if a vehicle doesn’t have massive damage, an insurance carrier can still place a salvage title brand on any vehicle. Salvage titles are permanent and cannot be removed under federal law. 

Junk title 

Titles that have been sold to junkyards may be designated junk titles if the vehicle is intended to be scrapped or sold for parts. Vehicles and parts who’s VIN is part of the NMVTIS database can not be titled after receiving a junk title brand.

Certificate of destruction 

When insurance companies pay claims for vehicles and take ownership, they are eligible to process the title as a certificate of destruction. Vehicles with this title are intended to be destroyed or never used on the road again.

Duplicate title 

If you are the legally titled owner of your vehicle and you’ve simply lost your title document, you can apply for a duplicate title. Duplicate titles can only be issued in the state that they were originally registered and only to the last titled owner in the DMV database.

Certificate of origin 

The very first document that was issued by the manufacturer to the dealer. This document is intended to be used to transfer the vehicle title to the first owner and obtain a title. 

Manufacturer’s statement of origin 

Similar to the certificate of origin, but involving brand new imported and domestic vehicles.

Reconstructed or rebuilt title 

Vehicles that have been substantially rebuilt may have a reconstructed title brand issued by an insurance company, body shop, collision center, or licensed rebuilder. These vehicles can typically be used for road use, but may require additional inspections to verify it’s safety.

Court-ordered 

A title may be issued under an affidavit in lieu of missing documentation. This title method is often a last resort when all other options have been exhausted.

Parts only title 

A parts-only designation is normally found on the bill of sale or transfer form, but not a title. However, if a parts-only bill of sale is submitted for vehicle title processing, the title may be issued with a salvage brand or other irreparable brand on title.

Lienholder title 

A vehicle that has a lien or a title loan may have the title issued directly to the lienholder. The purchaser will be listed as the owner, but the title will list the lienholder. Once the lien or loan is paid in full, the owner may send a lien release request letter to the lienholder for title transfer.

Export title 

A vehicle being exported will likely need title documentation for customs clearance. If the vehicle is not declared at the exit point, a clear title may not be possible in the destination country. Start the title process early so that port storage fees do not accumulate while waiting for the title.

Import title 

A vehicle being imported to the US must have legal title to clear customs. If the vehicle was previously titled in the US this is a vehicle title recovery process only. If the vehicle was not originally manufactured for the US market, there are requirements for certifying that the vehicle is legal for use in the United States. The Department of Transportation (DOT), Environmental Protection Agency (EPA), National Highway Transportation Safety Administration (NHTSA) and other agencies will need to verify that the vehicle meets standards for emissions, safety, bumper height, and other guidelines prior to entering the country.

Electronic title 

Many state DMV title systems are transitioning to issuing electronic or paperless titles rather than physical paper documents.

Although selecting your title method may be challenging, it’s an important part of vehicle ownership. By titling your vehicle in your name, you’re ensuring that the certificate of ownership for your vehicle can never be legally transferred to someone else without your consent. Looking to title your vehicle, but need assistance choosing your title method or recovery process? Text TITLE to (402) 698-4853 for assistance in choosing your title method or recovery process.

Calculating Sales Tax Using the Vermont Title Loophole

One of the most common mistakes that vehicle owners make when using the Vermont title loophole is miscalculating their sales tax amount. The reason for this error is often simple – the applicant used the wrong NADA book value for their vehicle. Choosing the wrong NADA book value not only misrepresents your vehicle but can also lead to overpaying or underpaying on taxes.

Determine the book value

The Vermont DMV states that to determine the book value of a vehicle, the applicant must use the Clean Trade-In value outlined by the National Automobile Dealers Association (NADA) commonly referred to as the “NADA Value”. The book value of your vehicle is how much the vehicle is worth and how much it would cost to replace it entirely. When determining your NADA book value, be sure to choose the lowest possible value to avoid overpaying in taxes. Some older model vehicles may not have a clean trade-in option outlined by the NADA. In these cases, you may be able to utilize a comparable book such as Kelley Blue Book to determine the value of your vehicle. 

Calculate the sales tax

Once you’ve determined your NADA book value, you will use that figure to calculate the sales tax owed. Sales tax is due at the time of registration and is calculated using the NADA value or the purchase price, whichever is greater. Calculating the amount of sales tax for using the Vermont title loophole can be done using these formulas:

NADA book value is greater than the purchase price

(NADA value) x (6%) = Sales Tax Due

NADA book value is less than the purchase price

(Purchase price) x (6%) = Sales Tax Due

If your sales tax is calculated incorrectly, it’s likely that your application will be rejected. If it’s not rejected, but the sales tax amount is too low, you’ll receive a revised invoice for the remaining balance within 15 days.

Dealer appraisal request

In some situations, the applicant may believe that the vehicle’s value is lower than the stated NADA value. If so, the applicant may submit a Vermont Dealer Appraisal Form. The purpose of the appraisal process is to ensure that the fair amount of tax is being paid by the applicant for the vehicle they are registering. 

Looking for additional tips for using the Vermont title loophole? Check out our article here on the top 5 tips for success. For assistance with your paperwork, learn more about our Bill of Sale only title utilizing the Vermont title loophole here!

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 Letter

Top 5 Tips to Avoid Vehicle Title Scams

A vehicle title is a legal document that proves ownership of a particular vehicle. To transfer ownership of the vehicle, the prior owner must sign the title over, but how do you know if the title you have is legitimate before you buy?

Tip #1: Match the VIN on the vehicle with the title

On every certificate of title for a vehicle, the VIN will be present. Typically the VIN is 17 characters, but vehicles older than 1981 may contain less. The VIN is present inside of the vehicle in various areas, most commonly in the door and under the hood. Find at least 2-3 places on the vehicle where the VIN is present and verify that the VIN on the title matches the one on the vehicle.

Tip #2: Check the ID of the seller

Only the legally titled owner of the vehicle is authorized to sign over the title to the new owner. Check the certificate of title for the owner information and ask the seller to provide a valid photo ID to verify their identity. Oftentimes if the seller is not the actual owner, they may be attempting to jump titles or the vehicle may have been stolen. If the seller doesn’t want to prove their identity for verification, this may be a red flag that they’re involved in illegal activities.

Tip #3: Verify all liens are paid off

Check the lien section on the title for previous liens on the vehicle. Even if there is a signature in the lien section, it doesn’t mean it’s a valid signature. Contact the lienholder listed to verify that the lien has been paid off. If there’s a lien on the title, you won’t be able to transfer it until that lien has been released. Additionally, remember if there’s a lien on a vehicle, that vehicle is owned by the lender.

Tip #4: Verify the title number is current

At the top of the title will be the title number. If a title is reissued, the new title will be valid and will invalidate the old title. It’s possible that the title you’ve been given is an old title and a new title is already issued in someone else’s name. To check the status of the title number, contact your local DMV directly.

Tip #5: Check for signs of forgery

Titles cannot be issued from any other institution other than the DMV. If a title has been typed over or otherwise altered in an unofficial way, the title is considered forgery and is immediately deemed invalid. Additionally, check the title number against the current registration of the vehicle. If the title number on the registration does not match the title number of the certificate, it may be a false title.

When the vehicle title is signed over to you, make sure that the seller completes their part correctly. If not, it could leave you with a vehicle and no title. Keeping yourself educated is the best way to stay safe from scams. These five tips are not the only ways to keep yourself safe from vehicle title scams. Always double-check the information provided and when in doubt, contact the DMV for verification. If the situation feels wrong, it just might be.

How to File a Mechanic’s Lien in Virginia 2022

A mechanic’s lien is a process afforded to licensed automotive facilities in order to recover costs for repairing a vehicle. Similar to the mechanic’s lien, many states also allow for storage facilities to file a similar lien on stored vehicles known as a storage lien. In Virginia, these two liens are processed in essentially the same method. If you’re an automotive mechanic or storage facility in Virginia looking to file a mechanic’s lien or storage lien (MSL), there are strict requirements and timelines to file. So how do you file a mechanic’s lien?

When filing a mechanic’s lien in Virginia, the first step is to determine the NADA value of the vehicle. The NADA value provides the book value of the vehicle which translates to how much the vehicle is worth. This step is especially crucial for filing a mechanic’s lien in Virginia as different filing procedures will exist for different value vehicles.

Virginia mechanic’s lien procedures by NADA value

NADA Value: $3,000 or less 

  • Submit VSA41 and apply for the official vehicle transcript from the DMV
  • Provide proof that you’ve possessed the vehicle for a minimum of 30 days
  • Submit requirements for state title application, nonrepairable certificate, or sell the vehicle.

This procedure to file a mechanic’s lien requires that there is no record of owner or lienholder on official DMV records. If a record is found, the owner and/or lienholder must be notified in accordance with MSL guidelines. Additionally, the vehicle must be at least 6 years older than the current model year.

NADA Value: $12,500 or less

  • Submit VSA41 and apply for the official vehicle transcript from the DMV
  • Notify all owner(s) and lienholder(s) by certified mail of your intent to sell the vehicle at least 10 days prior to the auction
  • If no owner(s) is located, you must post 3 public notices of the auction: one in a public place in the city or county where the vehicle is located, one on an official Commonwealth of Virginia property or website, and one in a city or county newspaper or website.
  • Provide proof that you’ve possessed the vehicle for a minimum of 30 days
  • Advertise the date, time, and location of the auction in at least one public place at least 10 days prior to the auction.
  • Once the vehicle is sold, the seller must provide documentation on the MSL process in accordance with VSA41.

NADA Value: $12,501-$25,000

  • Submit VSA41 and apply for the official vehicle transcript from the DMV
  • Notify all owner(s) and lienholder(s) by certified mail of your intent to sell the vehicle at least 10 days prior to the auction
  • If no owner(s) is located, you must post 3 public notices of the auction: one in a public place in the city or county where the vehicle is located, one on an official Commonwealth of Virginia property or website, and one in a city or county newspaper or website.
  • Provide proof that you’ve possessed the vehicle for a minimum of 30 days
  • Advertise the date, time, and location of the auction in at least one public place at least 10 days prior to the auction.
  • Petition to the General District Court of the county or city where the vehicle is located to order the vehicle sale. You must be granted the petition by the court.
  • Hold the vehicle auction through the sheriff of the jurisdiction once it is ordered.
  • The sheriff then must complete an affidavit of compliance that acknowledges the sale was in compliance with the court order.

NADA Value: $25,000+

  • Submit VSA41 and apply for the official vehicle transcript from the DMV
  • Notify all owner(s) and lienholder(s) by certified mail of your intent to sell the vehicle at least 10 days prior to the auction
  • If no owner(s) is located, you must post 3 public notices of the auction: one in a public place in the city or county where the vehicle is located, one on an official Commonwealth of Virginia property or website, and one in a city or county newspaper or website.
  • Provide proof that you’ve possessed the vehicle for a minimum of 30 days
  • Advertise the date, time, and location of the auction in at least one public place at least 10 days prior to the auction.
  • Petition to the Circuit Court of the county or city where the vehicle is located to order the vehicle sale. You must be granted the petition by the court.
  • Hold the vehicle auction through the sheriff of the jurisdiction once it is ordered.
  • The sheriff then must complete an affidavit of compliance that acknowledges the sale was in compliance with the court order.

The Virginia mechanic’s lien process and storage lien process is a very valuable and powerful tool. Unfortunately, oftentimes mechanic’s liens are not filed in good faith. The DMV is constantly picking through mechanic’s lien and storage lien applications to check for fraud. If you’ve submitted your application properly but it was still rejected by the DMV, don’t panic. This is a common tactic used by the DMV to scare off those who are attempting to use this process fraudulently. Simply resubmit your application and contact your local DMV if needed. If a mechanic’s lien is not done correctly, the DMV has the authority to revoke the title and could even bar a business from filing mechanic’s liens in the future.

Want help getting started on your mechanic’s lien or storage lien? CarTitles.com is the expert at handling challenging title situations. Let us help you get started with your paperwork or mechanic’s lien process here!

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