There are several different types of car titles. The type of title you receive will depend on the circumstances surrounding your vehicle. Here is an overview of the different types of car titles:
This is the first title document issued by the vehicle manufacturer to the franchised dealer where the vehicle was delivered to. This document is used to transfer the vehicle to the first owner, and obtain the title.
This is similar to a certificate of origin used by some vehicle manufacturers import or domestic.
When a title is issued to an owner with no lien specified the title is clear.
When a vehicle incurs some type of loss events such as major damage, theft, or repair, the title may be designated as a salvage title. The decision to place a title in salvage status is normally made by the insurance company that pays a claim on the vehicle. In some states, there are statutory regulations that require an insurer to brand a vehicle with a salvage title. An example may be that a vehicle incurred damage that is more than 60% of its value. However, an insurance company can decide to place a salvage title brand on any vehicle it decides to, even if there is little or no damage. A salvage title, junk title, rebuilt title, or certificate of destruction are almost always permanent brands on the title which cannot be removed. In rare cases, a very complex and expensive process of reconstructing the vehicle and inspection may upgrade a branded title status, but it typically involves more expense than the vehicle is worth.
Salvage titles can normally be registered for road use. In some states an inspection is required to make sure that the vehicle is safe for the road, and that any parts used for repair are legal and have a verified origin. For your own safety make sure that any vehicle you purchase as a salvage title has operational airbags and valid documentation of the VIN# and all major component parts.
Any attempt to remove, obscure, conceal, or alter a title brand using unauthorized means can be a violation of law often referred to as “title washing” or “title laundering.” The salvage title designation is shared with all 50 states. Evading a title brand is a serious offense. Getting a new title for that purpose is illegal and results in serious criminal penalties.
A title that has been sold to a junkyard may incur a junk title designation if the vehicle is intended to be scrapped or parted out. A salvage title, junk title, rebuilt title, or certificate of destruction are almost always permanent brands on the title which cannot be removed. In rare cases, a very complex and expensive process of reconstructing the vehicle and inspection may upgrade a branded title status, but it typically involves more expense than the vehicle is worth.
Obtaining a vehicle title when there is a serious deficiency in the ownership documentation can sometimes be done using a bonded title. In this process, a security bond is purchased equalling the amount of the value of the vehicle. This bond covers any future claims in the event that a valid claim to the vehicle comes forward in the future. The bond is used to pay to remove the claim of ownership or lien. The bonded title will have a “Bonded” stamp on it for a period of 3 to 5 years. In many cases, the bonded title is more expensive than other title recovery options but may be the last resort when other methods are not possible. Contact us to determine if a bonded title or other option is most beneficial.
A vehicle that has been substantially rebuilt may have a reconstructed title brand issued by an insurance company, body shop, collision center, or licensed rebuilder. A vehicle with a reconstructed title can normally be registered for road use but may have an inspection requirement to verify it is roadworthy.
A title may be issued under an affidavit in lieu of other missing documentation.
A vehicle that has been substantially rebuilt may have a rebuilt title brand issued by an insurance company, body shop, collision center, or licensed rebuilder. A vehicle with a rebuilt title can normally be registered for road use but may have an inspection requirement to verify it is roadworthy. The vehicle insurance may have limits if the title is rebuilt.
When an insurance company has paid a claim for a vehicle and taken ownership from the insured, they have the option of processing the title as a certificate of destruction. In this case, the vehicle is intended to be destroyed and never to be used on the road or registered. It is unlikely that a vehicle with a certificate of destruction can ever be issued a valid title for transfer.
A vehicle with a certificate of destruction can sometimes appear to be in acceptable condition. The insurance company decides to prevent the car from road use to limit its liability in the event that the car is driven and is involved in an accident at a later date. If it is proven that an injury in an accident is because the car had some existing defect, the injured person could claim that the insurance company should not have let the car go back on the road.
A vehicle in otherwise good condition can be issued a certificate of destruction if the insurance company thinks that the airbags could be damaged, the frame could be weakened, or simply does not want to spend the money to do a detailed inspection, and just wants to sell it cheap to a junkyard.
A parts-only designation is typically found on a bill of sale or transfer form, not on 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 cloud on the title.
Many state DMV title systems are issuing electronic or paperless titles. If you need an actual title document those can often be obtained for transfer or loan processing.
A vehicle with a lien title or title loan may have a title issued directly to the lienholder. The purchaser will be listed as the owner, but the title will list the lender as the lienholder, and the lender will retain possession of the 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.
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.
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Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request Letter
When a vehicle incurs some type of loss event such as major damage, theft, or repair, the title may be designated as a salvage title. The decision to place a title in salvage status is normally made by the insurance company who pays a claim on the vehicle. In some states there are statutory regulations which require an insurer to brand a vehicle with a salvage title. An example may be that a vehicle incurred damage more than 60% of its value. However, an insurance company can decide to place a salvage title brand on any vehicle it decides to, even if there is little or no damage. A salvage title, junk title, rebuilt title, or certificate of destruction are almost always permanent brands on the title which cannot be removed. In rare cases a very complex and expensive process of reconstructing the vehicle and inspection may upgrade a branded title status, but it typically involves more expense than the vehicle is worth.
Salvage titles can normally be registered for road use. In some states an inspection is required to make sure that the vehicle is safe for the road, and that any parts used for repair are legal and have a verified origin. For your own safety make sure that any vehicle you purchase which as a salvage title has operational airbags and valid documentation of the VIN# and all major component parts.
Any attempt to remove, obscure, conceal, or alter a title brand using unauthorized means can be a violation of law often referred to as “title washing” or “title laundering.” The salvage title designation is shared with all 50 states. Evading a title brand is a serious offense. Getting a new title for that purpose is illegal and results is serious criminal penalties.
If you have a salvage title, certificate of destruction, or other branded title, be sure to follow all applicable Federal Laws on title branding:
https://www.gpo.gov/fdsys/pkg/CHRG-109hhrg27254/pdf/CHRG-109hhrg27254.pdf
For more information on titles for these types of vehicles and how to get a title for a junk vehicle, visit JunkTitle.com
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If you have a salvage title, certificate of destruction, or other branded title, be sure to follow all applicable Federal Laws on title branding.
Obtaining a vehicle title when there is a serious deficiency in the ownership documentation can sometimes be done using a bonded title. In this process, a vehicle title surety bond is purchased equalling the amount of the value of the vehicle. This vehicle title bond covers any claims in the event that a valid claim to the vehicle comes forward in the future. The title bond is used to pay to remove the claim of ownership or lien. The bonded title will have “Bonded” stamp on it for a period of 3 to 5 years. In many cases, the bonded title is more expensive than other title recovery options, but it may be a last resort when other methods are not possible. Contact us to determine if a bonded title or other option is most beneficial.
The requirements to obtain a bonded title vary by state. The bonded title application form can be found online on the state’s Department of Motor Vehicles (DMV) website. Some states also require an inspection of your vehicle before you apply for a bonded title. This can include an emissions inspection, VIN verification, or other general inspection. Inspections will vary by state but are generally completed by licensed garages or other mechanics in your area.
In some cases, residents of non-bonded title states may be able to obtain a bonded title through Vermont. Bonded titles are a valid method of title recovery only in the following states:
A surety bond is an agreement between you, the surety company, and the state DMV that says you are the legal owner of the vehicle. The surety bond also states that if the DMV finds out that there is a discrepancy regarding the ownership of this vehicle, they will not be held liable. In other words, if someone comes forward stating that they own this car and you falsely applied for a bonded title, you will be responsible for reimbursing the DMV for any costs incurred in correcting this situation. The surety bond amount is typically required to be 1.5 times the book value of the vehicle. Most surety bonds cost around $100-$150 to obtain for average valued vehicles. You are not required to pay 1.5x the value of your vehicle, only a small fraction to secure the surety bond.
To be successful in using this method of title recovery, ensure that you learn about all applicable laws in your jurisdiction and abide by all inspection regulations. Even if you’re missing the proper paperwork, if it’s your car, you deserve a title. For assistance with your title recovery, our title experts can help you obtain your bonded title.
In this video, we will discuss the various costs of getting a replacement car title. While the fees do vary by state and the method of title recovery, CarTitles.com will do your preparation for one low flat fee! Don’t waste your time at the DMV. Don’t waste your money on some fly-by-night title service. We will get your title recovery paperwork done correctly, quickly, and legally!
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