Transitioning to Electronic TitlesEvery year, we have discussions with directors, assistants, and commissioners from various Department of Motor Vehicles (DMV) offices across the country. They provide insights into the world of vehicle title and registrations in the public sector. Currently, the theme revolves around transitioning to electronic digital titles, although this shift may take a few years.
Ensuring Compliance and Combating FraudAnother prominent theme is ensuring that title and registration applicants comply with regulations. There has been a significant focus on combating fraud, addressing loopholes, and closing back doors that have been exploited over the past decade.
Impact of COVID-19 ExceptionsCOVID-19 brought exceptions to title regulations in 2020 and 2021, including adjustments to inspections and documentation requirements. However, these temporary measures are being revisited as the situation evolves.
Official Recommendations for Court Order and Bonded TitlesDMV offices are increasingly providing official recommendations for court order titles or bonded titles. This includes advising clerks at satellite branches to discuss these options with applicants.
Salvage and Partson TitlesThere’s a notable shift in handling salvage and partson titles, especially concerning cars sold by Copart or IAA. These vehicles are primarily intended for automotive businesses and auctions rather than the general public.
Safety Inspections and Coordination between StatesDMVs are now conducting more meticulous inspections to ensure salvaged vehicles meet safety standards. Additionally, there’s a growing trend of coordination between states to share data and streamline processes, aiming to prevent individuals from evading regulations by moving between states.
Importance of Proper Title ProceduresA title isn’t just a piece of paper; it’s a legal document confirming vehicle ownership and value. DMVs must ensure that titles are issued correctly to prevent disputes and uphold the integrity of the system.
Upcoming Conversations and UpdatesFurther conversations with DMV officials are planned for the end of summer or early fall. These discussions will provide further insights into evolving developments in the world of vehicle titles and registrations.
ConclusionNavigating the world of DMV procedures can be challenging, but it’s essential to understand the significance of proper title issuance. Stay tuned for more updates on DMV developments as they unfold in 2024.
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The Challenge for Automotive BusinessesSo, if you’re an automotive business like a body shop, a towing company, or a repair yard, you may have found that doing mechanics leans has become a lot more difficult.
Disappearing Service ProvidersMany of you have had a service, usually a mom-and-pop type company that works from home or some little agency that did your mechanics leans for you.
Frustrations of Repair ShopsWe get 15-20 calls a day from repair shops or automotive shops that say, “Look, I had a place that was doing all my mechanics leans… and I can’t get a hold of them.”
The Importance of Mechanics LiensMechanics leans are a very specific process that only a licensed Automotive facility can do. It’s a way for them to get paid back for repairs that were not paid for by the car owner.
The Mechanics of Mechanics LiensLet’s say somebody brings their car in for a transmission job… they don’t show up, they don’t pay the bill. Well, how do you get paid if you’re the shop?
Crackdown on FraudStarting about 15 years ago, the DMV departments in all the states found out it was often used for fraud.
Evolving RegulationsMost states now have statutes on the books that say the actual licensee has to send the certified letters, they have to post the ad in the newspaper, they have to hold the auction.
Third-Party ChallengesEven in states where it’s not illegal, it’s now so much more difficult that the third parties can’t afford to do it for the fees that most shops are wanting to pay.
Streamlining the ProcessWhat do you do if you are a licensed repair shop? Look into streamlining the process.
A Solution for Licensed Repair ShopsWe have a title service but it only does the paperwork. We can’t send out the certified letters, we can’t hold the auction for you, we can’t put ads in the newspapers.
Reasons for DisappearanceIf you’ve been wondering why your title mechanics lean company has disappeared off the face of the Earth, that’s why.
Alternatives to Mechanics LiensIf you’re not a licensed repair shop, mechanic lean is probably not the way to get a title. You could do a court order title for a lot quicker, cheaper, and easier process.
How to Get a Lien Release for a Vehicle Title
So how do you get a lien release for a vehicle title if you have a car that needs to get a title and there’s a lien holder showing on that title record with the DMV?
The title normally won’t be released until you have that lien cleared from the title records. Some of the complications could be if the lien holder’s out of business or if the car’s not fully paid off, or if it’s an automax type car title loan.
In those cases, you have to go through a certain process. If the lien holder is out of business, you have to find out where they transfer their assets to.
If the car is not paid off, you might want to do a lien mitigation to have the lien discounted to an amount that’s palatable.
If it’s a title pawn, you may find that loan’s not even recorded on the title so there might be a duplicate title possible.
In other cases, if there’s any trouble finding the lien holder finding where they are, you can maybe get a letter of not interest from the bank listed on the title which will be the same as a lien release.
Sometimes if you have payoff documents from the bank showing that it was paid off on a certain day, the DMV may accept them.
So a court-ordered title is your last resort but if the car title loan is more than ten years old sometimes a court-ordered title may be the way to go.
So what’s the process for getting a new car title?
Scenario AssessmentWell, you have to look at the scenario to see which of the processes you have to go through.
True Duplicate TitleIf it’s a true duplicate, meaning that you are the title owner and it was in your name, you just need to get another copy. That’s an easy process. You go to the DMV, bring your driver’s license to the VIN number, and they’ll take care of that for you.
Changing the Owner NameIf you’re changing the owner’s name on the vehicle, you may need other documentation. You might have to remove a lien holder if there’s an old lien holder on the car. Look first at what documents you have: a bill of sale, a receipt, or any other documentation showing the vehicle’s transfer to you.
Locating the Prior OwnerYou may have to locate the prior owner to get some of these things signed, which may be part of the process of getting a new title.
Recent Purchase ConsiderationsIf you bought the car recently, you want to take a look to see if you bought it from a dealer or private seller, and even though somebody may have seemed like a dealer, sometimes there’s people who sell cars out of the blue that aren’t really legitimate licensed dealers; they’re just individuals who flip cars from the driveway or from some car lot somewhere.
Paper Trail and Chain of TitleSo check to see if it was a dealer or a private seller, and if there is, what’s the paper trail and what’s the chain of title that you have putting the car in your name?
Option Three: Bonded TitleSo if you’re looking to get a title for your vehicle we’re gonna now look at option number three in scenario three meaning that you purchase a vehicle you have limited documentation and the vehicle is newer than 15 years old in that case one of the options that is most often used is what’s called a bonded title.
The Bonding ProcessIn that scenario you purchase a bond from a bonding company it’s the same kind of company the issues bonds that get people out of jail it’s kind of like getting your title out of jail is what it is and they guarantee the ownership of your vehicle if you don’t have the right documentation meaning that you don’t have the old title you don’t have a signed over legal document to you from the prior owner and a bill of sale doesn’t count by the way it’s good that you have that but it’s not enough.
Exchanging the Bond for TitleThe bonding company will issue in lieu of that this vehicle bond once you have that you bring it to the DMV or the title office or the license office whatever it’s called in your state and you exchange it for a title in your name.
Costs and ConsiderationsNow what’s the catch well the catch is the bond might cost you 100 110 hundred and twenty dollars and they also have to prove it at the bonding company remember they’re guaranteeing the full value of the vehicle and you’re only paying $100 so if something goes wrong with the ownership or there’s a claim or there’s a lien they’re on the hook for so they’re gonna make sure that their chances of having to pay that out or slim they don’t want to be adding risk to their portfolio but once you get that bond in your hand you’re clear to go you can go to the DMV and get a title in your name.
Title SpecificsIn some states that title may be stamped bonded title it’s not like a salvage title or anything like that it just means that for three or five years that’s going to be on the title so that the bonding company knows that their lien or their bond is protected some states don’t recognize the bonded title so you have to make sure that the state you’re in is okay with that and if you are and kind of move to another state that doesn’t recognize it that could be a problem too it’s something to look into as an option if you don’t have sufficient documentation.
Do-It-Yourself OptionIt’s also something you can do yourself you don’t have to pay and out company to do this process for you you buy the bond from the bonding company 100 120 bucks in most cases that bonding company will also help you do the paperwork you don’t have to pay somebody else to do that so find the right company ask them if they will help you with the DMV paperwork turned in that bond wait a few days you’ll have a title in your name and that may be the solution as a worst case scenario if you have no other options.
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