Can The Person At The DMV Be Wrong

Issues with Getting Answers from the DMV
We hear a lot from our customers that they’re having trouble getting good answers from their local DMV. A lot of times, we hear that they called the DMV or went in person to the DMV, and they told them something they could do—”Hey, if you do this, you’ll be able to get a title.” And they do that, and they find out later when they go back, “No, that didn’t work. You have to do something else.” Why is that? Is the DMV trying to mislead you? Well, they’re not really. It’s just that sometimes, for more difficult or complex title issues, the DMV employee you talked to initially may not know the right answer.

Lack of Training Among DMV Employees
A lot of times, the DMV employees are not necessarily trained on all the possible scenarios, so they might just give a guess or something they think is right. And then when you come back, they look it up, and it’s wrong. We deal with the DMV 80–90 times per day, and a lot of times what they tell you is incorrect. Again, not intentionally misleading—it’s just sometimes vague information.

Access to Expert Consultation
You have access to live one-on-one consultation and the undivided attention of a licensed certified expert in this subject and many others. We want to listen to your story. We want to hear your questions and give you expert advisement of your options. We want to tell you what we know about your situation and what options you have.

DMV Offices Closing Due to Non-Compliance
The offices that are actually being closed down because of non-compliance—sometimes these offices are doing things so bad that the main office for the DMV has to shut them down. This happened in Texas, and this one county was closed by the DMV for non-compliance. They had to go through some training so they learn better. And it’s not a one-off—it’s an ongoing trend of violating their rules and statutes.

The Importance of Getting Information in Writing
Don’t be surprised if you go to the DMV and might not want to take what they say at face value. Maybe get it in writing. We recommend if they tell you you can do something, have them give it to you in writing so that if you go back later and they tell you something different, you can say, “No, I have it right here.” Or look up the statute yourself to know what the rules are. Or get some third-party verification of the procedure you can use to get a vehicle title so you don’t get stuck with a car that you can’t get a title for.

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Why Is It So Hard To Get A Title From The DMV?

Waiting in Line at the DMV
So do you hate the DMV? Well, imagine these people waiting in line at 2 a.m. Waiting in line over one hundred people. This is in Broward County, Florida. This was posted on social media—pictures of these people just sitting, waiting in the dark to try to get the DMV to get a title, to get a registration, to get a license. And it says in this caption they only accept the first 50 people, and there are over 100 people in this line. So anything you can do to avoid waiting in line.

Alternatives to Visiting the DMV
The DMV is good. Try to do it by mail. Try to do it online. Try to do it maybe with a service. But if you’re looking to get something at the DMV, going in person, waiting in line is the last thing you want to do.

Challenges with Contacting the DMV
And as you probably already found out, you’re not going to get anybody on the phone when you call them. So don’t try to call them up either because they don’t have customer service at the DMV.

Considering Other Options
So this is just another example of why the DMV is tough to deal with and why you might want to look at alternatives to going down in person and torturing yourself with all the people at 2 a.m. in the morning.

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Should You File A Lien or An Abandoned Vehicle?

How to File for a Mechanic’s Lien on an Abandoned Vehicle
Well, first of all, it’s very important to distinguish between a mechanic’s lien and an abandoned vehicle. Because abandoned vehicles have a lot of limitations on what you can do. In most cases, the vehicle that you’re trying to get a title for really is not abandoned. Because if you call it abandoned, you’re probably going to lose out on what you’re trying to do with your title.

Example from Maryland
We’ll talk about that as an example. We’re going to take a look at a specific state. Happens to be Maryland and how they address mechanic’s liens and how you get titles and what you can and can’t do. Remember, we do have a service where if you want assistance with this mechanic’s lien vehicle title process, you can access that on our website. And we can give you more information either as instructions or we could do it for you. Or we can even do consultation.

Maryland Department of Transportation Motor Vehicle Administration
First, we’re going to look at Maryland Department of Transportation Motor Vehicle Administration entitling a vehicle with a mechanic’s lien.

Federal Guidelines for Mechanic’s Liens
Remember, this is just one state. But most states have about the same rules. And the reason we selected this one to give you as an example, even if you’re not in Maryland, the chances of you being in Maryland are very slim. Because it’s the smallest state in the country. And there’s 50 states. So you’re probably not in Maryland. But the rules here are probably very similar or the same as your state. Why is that? Most states use the federal guidelines for mechanic’s liens and abandoned vehicles.

What is a Mechanic’s Lien?
So what is a mechanic’s lien? You can put it against a vehicle by a repair or storage facility if the owner fails to pay the repair bill and leaves the vehicle in the custody of the facility. Now, think about that. This is not abandoned. They intentionally gave it to you in your custody for an extended period of time.

Selling the Vehicle
After taking the action required to establish a lien, the facility can then sell the vehicle to recoup the money owed to you. That sounds like what you want to do. Don’t be scared by what it says here that sell the vehicle at a public auction. It’s not like you have to bring it to some auction and let them auction it off. You hold the vehicle on your premises. You just give the public notice that they can come offer you a bid. You don’t have to take their bids. You could put your own bid in and beat everybody. It’s not like you have to pay anybody money. The money’s going right to you. You just have to at least let the public offer you something for it.

Rules for Obtaining a Mechanic’s Lien
What are the rules for obtaining a mechanic’s lien? Remember, this is a brief overview. But it does give you some insight into how it works. All of the following must be true before you can establish a mechanic’s lien. Notice the first word “all.” You have to have all of these true.

Charges and Repair Authorization
Charges for the vehicle or vehicle repairs must go unpaid for at least 30 days. Meaning that you can’t just jump the gun and file it 2 days after the guy dropped off the car. You have to wait a month. Charges must be supported by a repair authorization. What does that mean? You have to have a completed repair order authorized by the vehicle owner, including a detailed description of the work performed. So you can’t just make stuff up. You have to have it in writing and the owner has to sign it before you do the work.

Other Options
If you don’t have that or don’t meet any of these other criteria, there’s other ways you can get a title. Our website will give you what’s called a civil lien or a court order title or a bonded title. There’s other things you can do. So if you don’t meet these criteria, don’t worry. You can do other things. And sometimes the other things are actually easier.

Storage Fees
If you want to charge storage fees, you have to have a storage contract. You can’t just make up storage fees out of the blue and say I’m charging you $20 a day. Can’t do it. You have to have it in writing and signed.

Abandoned Vehicles
A vehicle that has been abandoned does not qualify for a mechanic’s lien. So don’t start calling these vehicles abandoned.

Contacting the Police
What happens if the vehicle’s abandoned? The local police department should be contacted.

Steps to Establish a Mechanic’s Lien
How do I establish a mechanic’s lien? At least 10 days prior to the planned auction date, you have to send a notification letter by registered mail to all the persons listed below.

Notification Details
The owner of the vehicle. The person who left the vehicle if it’s different than the owner. So if the vehicle’s owned by Joe Smith and Sally Smith dropped it off, you have to send a letter to each of those people.

Security Interest Holders
You have to send a letter to all holders of a security interest. What does that mean? That means lien holders. So if the vehicle has a lien holder, you have to send them a notice. And you have to send a notice to basically the DMV, the government authority.

Content of the Notification Letter
What has to be in that letter? The VIN number, year and make. A list of all the charges owed to you. So you have to have a breakdown of what the fees are that you’re claiming. Letting people know it’s going to be auctioned and the date and time of that auction.

Newspaper Advertisement
What you also have to do is you must also place a notice in the newspaper. And it’s very specific how you have to do it.

Correcting Errors in Advertisement
If the newspaper advertisement is incorrect, meaning you don’t wait the number of days, you do it too soon, too late, you must re-advertise and again send the certified letters out again.

Auction and Title
Then you hold your auction and you get your title.

Downsides and Limitations
What are the downsides? The downsides are, first of all, if you’re not a licensed repair facility, you can’t do this. You can’t just fix cars in your backyard and do mechanic’s lien because you’re an illegal mechanic to begin with. You can’t make up storage fees out of the blue. You also can’t wait too long. Most states have a rule that says you have to do this within six or eight or ten months. If you’ve been sitting on a car for 10 years, you can’t do a mechanic’s lien.

Alternative Titles
Most of the time if you’ve been sitting on a car more than two or three years, you’re out of luck for mechanic’s lien. But there’s other things you could do that still get you a title. And a lot of times those other things are better than a mechanic’s lien. Like a civil lien or court order title or bonded title or VT transfer.

Importance of Legitimacy
Mechanic’s lien is a powerful tool to get a title for a vehicle that has other problems. However, don’t do a fake mechanic’s lien if a person really did not bring their car in for repairs. You don’t have a signed repair order. Don’t start making stuff up because what’ll happen is that owner of the vehicle after you get your title is going to get a letter saying hey, we noticed that your vehicle was transferred away from you doing a mechanic’s lien.

Consequences of Fraud
Did you sign a repair order? Did you bring your car in for work? They’re going to audit the mechanic’s lien. If they find out that you filed a fake mechanic’s lien, they’re going to revoke your title and they’re going to do enforcement action against you. You may not think it’s a big deal but the state licensing authority, they do know that people use this improperly to get titles when they’re not supposed to.

Consultation and Assistance
So make sure you’re doing it the right way. Make sure you’re all legit, eyes dotted, tees crossed. If there’s any question that the mechanic’s lien might not be the way to go, then do a civil lien. Do a court order title. Do a bonded title. It’s way better in terms of how it works out for you. If you do have more questions about how to run one of these, how to do the paperwork or you just want us to do it for you, click the link below.

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Does My State Accept Vermont Loophole Titles?

If you’ve delved into the intricacies of obtaining a title for your vehicle, you’ve likely come across the Vermont loophole, a method that involves registering your vehicle in Vermont and then transferring the registration to your home state. The allure of this approach lies in its perceived simplicity, but before you embark on this journey, it’s essential to understand the potential challenges and weigh the alternatives.

The Vermont Loophole: Not a Well-Kept Secret

The Vermont loophole is no clandestine strategy; it has been widely discussed in articles, automotive publications, and even recognized by insurance companies like Hagerty. This popularity, however, comes with a caveat – all 50 states’ DMVs are well-aware of this loophole, and their responses can vary.

The Risk of State DMV Resistance

While many states have historically accepted Vermont registrations for title purposes, there’s no guarantee your state will do the same. DMV policies can change, and certain states may, at times, resist this approach. Instances of states temporarily rejecting Vermont registrations have occurred in the past, only to revert to acceptance after a period.

The Unknown Factors: DMV Agents and Policies

On any given day, your interaction with a DMV agent, the specific branch, or even the policies set by the state commissioner can influence the outcome of your attempt to use a Vermont registration. Some agents may accept it without issue, while others may scrutinize it more closely, potentially leading to rejection.

Sales Tax and Additional Fees

Utilizing the Vermont loophole comes with its costs. Vermont requires payment of sales tax based on the book value of your vehicle, not the purchase price. Additionally, you’ll need to pay their registration fees and wait for license plates and registration. Upon returning to your state, you’ll be required to pay your state’s fees, adding an extra layer of expenses.

Consider the Direct Route: Your State’s Requirements

Before opting for the Vermont loophole, it’s crucial to evaluate whether it’s truly the best route. Contrary to popular belief, the requirements for obtaining a title directly from your state may not be significantly more challenging. Often, the perception of one’s state DMV being difficult arises from unfamiliarity with other states’ procedures.

The Case for Exploring Other Options

The Vermont loophole might seem like an ingenious workaround, but it’s not always the most practical choice. Exploring other options directly available in your state can often be faster, cheaper, and more straightforward. Don’t disregard these alternatives simply because they might appear more challenging initially.

Case in Point: Kit Car Dilemma

An illustrative example involves a client attempting to title a kit car. The client considered the Vermont loophole to avoid inspection requirements in their state. However, the complexities of paying taxes in Vermont, potential requirements, and the ultimate need for inspection in their home state made the direct route a more viable option.

Informed Decision Making

While the Vermont loophole remains a frequently used method, it’s not without its downsides. Before proceeding, consider other available options in your state and weigh the potential risks and costs associated with the Vermont approach. Ultimately, being well-informed and exploring all avenues will empower you to make the best decision for securing your vehicle’s title.

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