Only 2 Car Title Methods Are Recommended

Video channel, if you’re watching this it’s probably because you have a vehicle that needs a title, you have title problems, or maybe you’re just an auto enthusiast that runs into vehicles without titles. We’re going to talk about different ways of getting a title and why some of the common ways people go about getting a title really aren’t that good. There’s really only two ways that you should try to get a title for a vehicle when you don’t have the old title.

Understanding the Old Title
What do you mean by the old title? Well, a vehicle title, as you know, is a legal government document that looks like this. It’s not a blank sheet of paper you could buy from a company; it’s actually a physical certificate, and it evidences not only the vehicle itself but who’s the owner. On that title is listed who is the legal owner. Now, you can’t buy a title from a company, you can’t download one from the internet; you have to get it from the government. And the only way they give you a new title is if you have the old title.

Risks of Alternative Methods
There’s a lot of little loopholes and backdoor methods people use to get titles, but a lot of times they can get you in trouble. Let’s take a look at an example of that where there are methods of getting a title which sometimes are not really that good because when you use them, you can have your title revoked, and you can get legal problems.

Boyd Coddington Case
There’s a very famous auto rebuilder named Boyd Coddington. Now, this is an old article, this is from 2004, 20 years ago, and which is about how long we’ve been doing titles, by the way, since the early 2000s. The state of California filed charges against this person. Now, we’re not casting doubt on them, but what this person is doing is the attorney general special crimes unit conducting an investigation for fraudulent registration of replica vehicles. They were switching VIN numbers from one vehicle to another because these were constructed vehicles made out of parts of different cars. All the above actions are a felony because they were registering a vehicle where the value is represented and avoiding compliance with smog law.

Legal Implications
If you’re using any title method that’s trying to do some backdoor to avoid taxes, avoid smog laws, avoid inspection, or even change the identity of the vehicle, that’s going to be a problem. It’s not just California; that’s going to be a problem. If you are getting a title, not only do you want to make sure that the method is good, but you also want to make sure you know what the method is. The reason we say that is because there are a lot of options you’ll find out there on Craigslist, on Facebook, online, where there’ll be somebody that says, “Look, pay us money, we’ll give you a title.” If that company or person is not telling you exactly how they’re doing it, then you might want to be suspicious because who knows if the method they’re doing is any good, if it’s going to get you into trouble, or if the title can even get revoked.

Broadway Title Example
Here’s an example. There was a company back about the same amount of time called Broadway Title. Now again, this is back from 2011. A word of caution: I purchased a vehicle and went through Broadway Title in Alabama. I had to return my plates and title to the state of Illinois after having them for two years because the method that this company, Broadway Title, used was illegal and wasn’t right. Now, I think Broadway Title, the name has been sold to some other company, so I can’t speak to if this company’s any good, and this is just one person’s opinion. Other people have said that their method of doing it was ridiculous, that they had to get a lawyer, that the state didn’t allow it. There are a lot of potential variables. So let’s not jump too much onto Broadway Title, but what they were doing, according to other comments, and you can read yourself on a very popular classic car vehicle website, you can look this up, was signing the vehicle over to this company. They would get a title in their name and then sign it over to you. Who knows what they were doing to get the title in their name, right? If they were doing something that was maybe not just illegal but just borderline unethical, and if the state sees too many coming from this one company, they might crack down on them.

Importance of Transparency
That’s why the best way to do it is to not do something that’s opaque, that you can’t tell what the title method is. You want to know what it is. In fact, the way we do it is we don’t actually apply for the title. You want to be the one that applies for the title. If you let somebody else apply for the title, first of all, the title might not be in your name; it might be in somebody else’s name, and you have to rely on them to give it to you. Number two, you won’t know the method until you sign the form, which means that you’re liable for some method that you didn’t even know how it was done.

Official Methods: Bonded Title Process
There are only two ways that the government really says you should be getting a title. Let’s take a look at those. One is what’s called the bonded title process. In most states, there’s a few that don’t do this, they have a bonded title process where if you do not have the proper paperwork to get a title, you can go through this bonding process and get a title. Now, there are a couple of misconceptions. Some people think you have to pay thousands of dollars for a bond to do this. You have to buy a bond, but usually, the bond costs you a couple hundred bucks. It’s not that much, right? What you have to do is provide an explanation for requesting a bonded title. Basically, what they’re asking you is why didn’t you have the right paperwork, are you in legal control of the vehicle, are you in possession of the vehicle, right? If that’s the case and you have an explanation and you buy a bond, as long as the vehicle is legitimate, it’s not stolen, you don’t have any liens, you don’t have any claims against it, you pay a $15 non-refundable fee, and if you have any evidence of ownership, title, bill of sale, canceled check, provide that as well, they’ll take a look at it. If all things look like it’s okay and the state accepts bonds, you’ll get a title, right? That’s the official, suggested, recommended method that the states have. That’s what you should look at first.

Official Methods: Court Order Title
Now, there’s another method that you can use as a backup, and we’ll talk about the pros and cons of bonded title here in a minute. The other method is what’s called a court order title. You can get more information about these on our website at cartitles.com. The other method is used in states that don’t have a bonded title or if there’s some reason that the bonded title doesn’t work in your state. Here’s an example of a court order title; this happens to be in Ohio. What are the steps? You have to visit a clerk to get the court order packet, which is this packet right here. You have to request the last known address of the vehicle by submitting the form to the BMV. It costs five bucks, no big deal. Mail a certified letter, get an inspection, and then you have to file a petition. It says to appear before the judge. Normally, you don’t have to appear. Normally, you file the petition; if everything looks A-Okay, they’ll either give it to you, sometimes they require you to come in front of the clerk to raise your right hand and swear under oath that this is true, and then you pick up your title. So it’s a few steps; you have to jump through some hoops, but I have to tell you, it’s a lot fewer steps than sometimes some of these other methods that people use.

Vermont Loophole
For example, there’s the Vermont loophole. You’ll see this on our website, online, even major insurance companies like Hagerty Insurance, Car and Driver, have written about this loophole method. You apply by mail to the state of Vermont, you get a registration from Vermont, not a title, just a registration, then you bring that to your state and exchange it for a title. There are more steps involved with that than just doing a bonded or a court order, but a lot of people like to do it because they feel like they’re kind of being sneaky and getting over on the DMV. You could do that. In most states, you’re not going to have a problem. There are a few states that, if you bring a Vermont registration, they’re going to say, “We know about this deal, get out of here,” right? Different times throughout the year, different years, some states will have more problems than others. As of right now, in June of ’23, we know for a fact that the state of Florida, if you walk in with a Vermont registration, they’re probably going to tell you to get the heck out. If you want to go through the hassle of going through Vermont to get a registration and a license plate, you can do that, but you’re running the risk of your state not accepting it. That risk is totally on you.

Risks and Costs of the Vermont Loophole
Plus, you have to pay sales tax to the state of Vermont. You might think, “Well, how much could it be?” It could be a lot because Vermont does not figure the tax on what you think the value is or your bill of sale; they figure it on what the highest book value they can find is, unless you present evidence otherwise. The evidence has to be a book value, not a picture of the car in pieces, not what you paid for it. They might use a lower book value than what they find, but it’s only a book value. You can’t just say, “Well, it’s only worth $300 because it’s in parts.” We’ve done other videos on why that’s the case.

Mechanics Lien
Some people will try to file for a mechanics lien. “Well, my buddy has a repair shop, he’ll file a mechanics lien and get a title.” Don’t even bother. States all across the country are cracking down on mechanics liens. There are several title companies that were operating for the last few years that now are out of business. A couple of them have actually been prosecuted criminally for filing fake mechanics liens. A mechanics lien is designed for a repair shop that actually did work on a vehicle, somebody didn’t pay the bill, and they auctioned it off to the highest bidder. It’s not just giving it to somebody else. If that’s not what happened, the DMVs will find out because they audit these and they look to see this repair shop is doing a hundred mechanics liens a month but only reports sales tax of a small amount. They know they’re out there selling fake mechanics liens for $500 a piece.

Conclusion
Be aware that just like the article we saw at the beginning, your title can get revoked if you do it the wrong way. Now, the two methods that are officially recommended, suggested, required: bonded title and court order title. End of story. If you decide to do something else besides those two, you run the risk that it could be harder than those two, it could cost more money, it could get rejected, or it’s just not going to work. So make your choice accordingly. If you pick a method to try to get a title that’s not a court order, not a bonded title, you may run into problems down the road. Sometimes it works, but you have to make sure that you’re weighing your risk and your reward of which one you want to do.

Final Thoughts
The title landscape in 2023 is about the same as what it was before, but it’s much more risky to do something other than a bonded or a court order title. Look, we’ve been doing this for 20-plus years, doing car title paperwork for people. Remember, you’re not buying a title from a company, you’re not getting a company to print you out or issue you a title. A title is a legal government document; the government has to give it to you. Now, the company can help you get it, but you don’t want to just hand it over to them and let them do everything because they may do something that’s cheaper and easier for them to do because it makes them more profit, but it could put you in hot water. Make sure you’re aware of what the process is, that you read a description of what the process is, you pick the process that you are comfortable with and you’re familiar with, and make sure you know what it is. Don’t just click it and say, “Access to whatever, just do it.” Make sure you know what’s going on because that title is being done in your name on your behalf, and once you sign those forms and send them in, you’re on the hook for whatever they are.

Summary
Car titles are a legal official document; you don’t want to mess around with it. Do yourself a favor and do either a court order or bonded title. You might think by reading it, and we’ll pull this back up again, that this is going to be difficult. What are the steps to get a court order title? Visit the clerk, request it. This isn’t really seven steps; most of these steps are combined. This is actually less work than jumping through the hoops you have to do for Vermont because remember, when you do the Vermont loophole, you have to get the Vermont registration, then switch it to your state and switch over your insurance. There are a lot of steps there, get a VIN verification. It’s really the same amount of work, and you run the risk of your state not accepting it, and you have to pay the tax, and it’s just sketchy. You’re better off going directly with the right method.

Alternative Methods
There may be some legitimate realistic scenarios where the Vermont process is the best way to go. Many high-profile people have done it. Like I said, Car and Driver, Jalopnik, Hagerty Insurance, you’ll see many, many articles. People all over the web, all over the internet have done this, but it doesn’t mean in your case it’s the best way to go. Do yourself a favor: look at court order, look at bonded. Don’t be afraid of the fact that it sounds like it’s too much work, too much bureaucracy. In the long run, you’ll be a lot more secure. You won’t have to be looking over your shoulder waiting for the DMV to yank your title because you did something that they didn’t want you to do.

Contact Information
If you have any questions, reach our other website, cartitles.com. You can consult with a title agent, and we can help you understand any of the processes a little bit better.

Visit Our YouTube Channel for more insights and discussions on various topics. Consider subscribing to our YouTube channel. Click here!

Vermont Car Title Loophole Restrictions

Important Developments for the Vermont Loophole
Well, for those of you who have been following our channel for many years, this will come as no surprise, but there’s some important developments for the Vermont loophole. The thing that’s been, you know, most interesting to people around the country for over a decade and this Vermont loophole is having some significant changes over the next couple of weeks. And like I said, for what viewers of the channel, you’ve seen us talk about this going back a couple of years, that this is something that’s going to happen where this loophole is effectively being closed. There may be some ways to use it, but you want to be aware of what’s required.

New Requirements from the Vermont DMV
This is the new current requirements from the Vermont DMV. They’ve issued a bulletin called the Vermont register. I’m sorry, the out-of-state registration certification. This is a form that is issued 6 of 23, so June of 2023. This is a new form in concert with other state jurisdictions. What does that mean? That means a Vermont DMV has been in contact with other DMVs. We’ve reported on this for several years that the DMVs across the country have been working with Vermont to try to consolidate these rules because they don’t want people just kind of using this loophole and getting titles for vehicles they’re not supposed to.

Evaluation of Out-of-State Transactions
The Vermont Department of Motor Vehicles now evaluates all out-of-state transactions based on your own home state’s laws, regulations, and policies. And we’ve talked about this; every state has certain policies about where you can and cannot register your vehicle, right? So up until now, Vermont didn’t really care. To that end, the department will not process these transactions unless you can establish a legitimate connection. So what you have to do is you have to get this form that says by signing this form, I declare I’m the owner of the vehicle and apply for registration. I certify the statements contained in this application are true. I understand that the declaration is made under penalties to be completed by the Home State of Motor Vehicles or comparable agency.

Home State Approval Required
What that means is when you send in an application to the state of Vermont for a registration for the loophole, you have to get your state to say that’s okay—not okay to transfer the registration from Vermont to your state, but it’s okay for Vermont to give you that license plate in the first place, right? So once this information is received, a Vermont DMV law enforcement division will review the request and ultimately grant or deny the application. During this review process, the staff may request additional information from the owner or his home state.

Alternative Methods and Recommendations
So the long story short is they’re going to review these. If you’re trying to get a title for a vehicle that really you’re not supposed to, they’re not going to be part of that. We recommend, as we always have, looking at the other options: the bonded title, the court order title, prior owner contact, the other types of methods on our website. In fact, in most cases, the other methods are cheaper than Vermont because Vermont charges you big-time sales tax. They always have, and we’ve always advised people not to use Vermont as your first option because the taxes are high, and you have to wait for Vermont to process it and then switch it to your state.

Immediate Action Required
Whether you do a bonded title, a magistrate title, court order title, you don’t have to pay tax to Vermont. You don’t have to wait for Vermont to process it. And now you don’t have to deal with this effective immediately complete this form required option, right? Um, the form has to be completed in the home state of the vehicle owner certifying that the home state laws do not require the vehicle to be registered there. Very few states are going to say this is okay.

Final Advice and Assistance
If you want to go ahead and try for the Vermont loophole, go ahead. It’s, you know, your option to do, but we advise that you do another more appropriate process like we always have suggested: court order, bonded title, or other method you see on our website. Or you can consult with us to see what might be more appropriate in your scenario. But if you do decide to still persist with wanting to do this Vermont loophole, be aware that there’s a lot of possibility that it’s not going to work. And if you pay us to do it, then the cost is going to be spent. All we can do is switch it over to another process after the fact. So make sure that you pick a method that you want to abide by and not necessarily pick one just because you read it somewhere on the internet.

Our Commitment to Help
As always, we’re glad to help. We’re glad to be assisting with the title process because we know how hard it is to get a title. Uh, we deal with DMVs all the time. We want to make it easy for you, but we want to help guide you into a process that is going to be more appropriate for a scenario. And for most people, Vermont is not the way to go. You want to use another process. And even though we’ve advised that for a long time, many people still gravitate to it because it sounds good, it sounds like you’re getting away with something or a loophole. We don’t advise it, and looking at the other methods is probably going to be better for you. And let us help. Let us be a good resource, a free consumer resource for you.

Visit Our YouTube Channel for more insights and discussions on various topics. Consider subscribing to our YouTube channel. Click here!

Are Used Car Prices Going Up Or Down?

Mixed Messages in Used Car Prices
So what is really going on with used car prices? Some mixed messages for the first few months in 2022. Wholesale vehicle prices kind of dropped a little bit, not much but a little bit, for three months straight. Well, here in June, the prices went up after three months of sequential declines. Wholesale prices edged higher in May and this is right in the middle of having higher gas prices, inflation, higher interest rates on homes, and home prices still being up.

Factors Influencing the Used Car Market
So what gives? What’s going on with the used car market? Well, it could be that during the first few months of the year there was a little bit more new car inventory that kind of came out into the marketplace in, you know, February, March, April, and so used cars kind of slowed down a little bit. Maybe some dealerships got stacked up with vehicles in their used car department.

New Car Inventory Challenges
Well, now once we get into May and even June, new car inventory is even worse than it was. We’ve seen some data where some of the manufacturers have a 5 or 10-day supply of vehicles. Big manufacturers Mazda, Toyota, Honda, Subaru have a single digit or 10 or 15-day supply of vehicles. You can’t run a dealership with just that many cars.

Dealer Reactions and Questions
So maybe now dealerships are going back to the well to find some used cars to fund and supply their inventory. Let us know what you think. Are you a dealer? Why are you seeing used car prices go up? Are retail prices going up or are your margins getting thinner for your used car inventory?

Visit Our YouTube Channel for more insights and discussions on various topics. Consider subscribing to our YouTube channel. Click here!

Is “Jumping” A Car Title A Crime?

Very often the subject comes up about an open title or a jumping title. What that means is if you have a title certificate like this one, it’ll have all the information on the front about the vehicle, and on the back it has a place where the owner can sign their name as the seller to the new buyer. If the owner just signs their name and leaves the buyer blank, that’s called title jumping or title skipping.

Scenario of Title Jumping
What happens is many times a buyer will want the title to be open so they can flip the vehicle. So let’s say somebody’s selling a car on Craigslist or Facebook and the buyer comes to you and says, “Hey, I want to buy your car. Just sign the back of the title. I don’t know what name I’m going to put it in yet, so just leave it blank. I’ll fill it in later.” Well, if you do that, you may be guilty of title jumping.

Consequences for Sellers
Title jumping: right on the back of the title, it says do not sign a blank title. There are many reasons why this can create problems. You might not think as a seller it’s any problem for you because you don’t care who buys the car, right, as long as you get your money. But what happens is if you sign an open title, you have no idea who you sold it to. You have no idea if they’re actually going to put it into their name right away, which means you’re liable for things that could happen with the vehicle.

Legal Implications for Sellers
You also don’t know if they’re avoiding taxes and evading taxes, and if you help them do that, you could be liable as well. In most states, there’s fines, penalties, and imprisonment if you are caught jumping titles, and as the seller, you could be just as liable. On the back of that title, it has language that says violation could be a criminal offense.

Specific Risks and Penalties
And what it spells out is if someone sells a car to another person, they only sign their name but not fill out any additional information about the sale, such as the price or mileage. That’s another problem that can come up. If you don’t fill in the back of the title, you don’t put in the mileage, somebody could roll back the odometer and have a vehicle with an illegal odometer reading. You could also change the price where if somebody gives you 3,000 for it and they say I only gave you a thousand, they pay less tax, right, and that could be title or tax fraud, tax evasion.

Legal Standing of Title Jumping
And according to this article, and this is a little bit of exaggeration, title jumping is considered a felony and highly illegal in 50 states. It’s not a felony in all 50 states. It’s a crime in almost every state, but if you’re caught doing it intentionally, the penalties can be pretty severe.

Buyer Precautions and Solutions
As a buyer, if you have purchased a vehicle with an open title, sometimes you walk into the DMV with that title not filled in, they’ll seize it from you. They will impound the title and sometimes the vehicle. If you have that happen to you, you may be able to do a bonded title, you may be able to do a court order title, and you may be able to do some type of magistrate title.

Title Bond Costs and State Variations
One of the things to keep in mind is if you get a title bond, remember it only is going to cost you about a hundred dollars for the title bond. Many people think it’s going to cost you thousands of dollars for a title bond, but there are some states where you can’t get a bonded title. Here’s a list of those states. There’s about 10 states that you can’t, but you can do a court order title.

Conclusion and Resources
And all the information on bonded titles, court order titles, jump titles are all available on our website at cartitles.com. Just make sure that you know when you’re buying a vehicle, get a good certified title transfer to your name. If for some reason the seller doesn’t have it, think twice about giving them your hard-earned money unless they’re going to give you a valid legal title.

Visit Our YouTube Channel for more insights and discussions on various topics. Consider subscribing to our YouTube channel. Click here!

Why Do I Need A VIN Verification For My Title?

Why VIN Verification is Required by DMV
Many times a client asks us why does the Department of Motor Vehicles or the titling Authority require a VIN verification or VIN inspection on a vehicle when they’re transferring a title. Well, here’s a good reason why.

Fraud Investigation by FDLE
This is a case that was investigated for many months and there was fraud happening on titles in the State of Florida. The FDLE, which is the Florida Department of Law Enforcement, cracked down and arrested more than 20 people that were fraudulently titling cars. What were they doing? What they were doing is they were buying vehicles from dealerships on credit or with a bad check, and before the loan defaulted or before the check bounced, what they would do is they would change the VIN number on the vehicle and they would get a fraudulent VIN number (vehicle identification number). They used that to apply for a title and transfer it to somebody else so that unsuspecting buyer was actually buying a stolen car. This operation, Gone in 60 Days, netted all these people arrested.

Expansion of the Scam
What happened was it was so popular as a scam that then they started renting vehicles from airports and other high-end areas and doing the same thing. They were changing the VIN numbers, putting a fake VIN number on, and then reselling the vehicle. Sometimes they would even sell it to an insurance company.

Purpose of VIN Inspection
So the reason for having a VIN inspection or VIN verification is to make sure that the VIN number that’s on your vehicle is actually the correct VIN number for the car. Now, you know it is—you know, are aware that it’s legitimate—but the Department of Motor Vehicles wants to make sure and protect you that you’re not actually titling an illegal vehicle or a stolen vehicle.

Protecting Innocent Buyers
If the VIN number has been tampered with, removed, altered, changed, sometimes people will buy these vehicles from Copart or IAA with junk titles or parts-only titles and slap another VIN number on from a salvage vehicle, and that’s a way to sell a car or truck to an unsuspecting innocent buyer. So they’re trying to protect the owner, meaning you, or even the next buyer from having a vehicle that’s ineligible.

Simple Process of VIN Verification
Now, it’s real simple. Usually, a notary or any local agent can inspect the VIN number. Really, all they have to do is look at the VIN number, make sure it’s the same as what’s on your title paperwork, and then also verify that that’s the actual identifier for that vehicle, that it hasn’t been tampered with, it hasn’t been altered in any kind of way.

Importance Despite Inconvenience
A VIN inspection, VIN verification is inconvenient, it’s annoying, but there’s a reason that they do it. They’re not just trying to make your life miserable and make you jump through hoops or be inconvenient. They want to make sure that that vehicle is eligible, legitimate, because once they issue that title, that’s a legal government document. They’re putting their trust and faith behind it that you are now the owner, that’s a legitimate vehicle.

One-Time Requirement
So now when you go to sell it, you can represent to your buyer everything’s legit. So it is a one-time thing. You don’t have to do it every year; you don’t have to do it every month. It’s a one-time event that you have to get a VIN verification performed to make sure that that vehicle is legitimate.

Visit Our YouTube Channel for more insights and discussions on various topics. Consider subscribing to our YouTube channel. Click here!