Dealing with salvage titles and vehicle inspectionsDo you have a salvage title for a vehicle that’s causing problems with your plans for that car? One thing you may run into is that you may need a vehicle inspection in order to get a new salvage title in your name. Sometimes those that require that inspection need the vehicle to be repaired up to their standards before that inspection happens. The problem is that if it’s not in your name and you spend all this money and it fails inspection, then you’re out all that money. So keep the receipts for any major component parts that you put on that car.
Importance of Documenting PartsHere’s why: When that car is inspected, they’re going to look at all the new parts that were put on. If you put on a front clip, an engine, transmission, axle—anything that’s what’s called a major component part—needs to be documented as to where that came from. If you purchased it new from a manufacturer or dealer, you need to have a receipt showing you bought a new fender. If you purchased it, which is more likely a used part from a junkyard or salvage yard, that salvage yard needs to give you the VIN number of the car that it came from.
Preventing Auto TheftIn most states, the government is preventing auto theft from taking parts off stolen cars to fix a salvage car. So you have to have the VIN number of the source of that major component part. So keep those receipts. Don’t try to jump states to wash their salvage off the title, meaning don’t try to use other states registrations to erase the salvage title. There’s a national database, and at some point it’ll catch up to that car, and if you’re the one who transferred it from one state to another, it’s going to tie into you, and you’re going to have legal consequences for that.
Rebuilt Titles and Certificate of DestructionSometimes, when a salvage title has been inspected and cleared, it becomes a rebuilt title. It can still have a brand on the title and a stamp on it, but it may not be salvaged. Be aware that if you have a certificate of destruction, that is not the same as a salvage title. That is like a death certificate for a car. Once that certificate of destruction or COD has been issued, that VIN number is now extinguished and can no longer be used as a vehicle for the road, no matter what you do to repair it or what kind of inspection you get.
Visit Our YouTube Channel for more insights and discussions on various topics. Consider subscribing to our YouTube channel. Click here!
Title Chain IssuesMotorcycles are more likely to need a lost title because there’s more frequently a gap in the title chain meaning that motorcycles aren’t always on the road in most parts of the country they can only be used about half the year so having a motorcycle off the road means that’s all that more time that the title can get lost that it’s not being transferred that the ownership isn’t being maintained sometimes a bike can be off the road for two or three years it’s also not what’s called an essential vehicle because it can’t be used year-round it’s not somebody’s primary vehicle in most cases so a lot of times these bikes will sit in a garage sit in a backyard sit in storage for years and then somebody will sell it during that time the title chain can be broken there’s also easier DMV rules for titling motorcycles so if you do have a motorcycle with a loss title the DMV rules are a lot more lacs to get you a title than it is for more expensive vehicle.
Starting with what you haveSo start with what you have: do you have a bill of sale? Do you have the owner’s name? Do you have the VIN number? Start with what you have and then work forward to build on things you don’t have, but don’t take any shortcuts. Title applications are legal documents that have to be done the right way.
DIY Title ApplicationYou can do it yourself very inexpensively you don’t have to pay a lot of money you don’t have to hire a person you can do all this stuff yourself in fact for most motorcycles that are older than 15 years you can actually get a legal title ownership application document from Vermont it doesn’t matter where you live doesn’t matter what state you’re in doesn’t matter where the bike is you can get a Vermont registration title and then convert it to your state very easy to do we’ve done other videos on this in the past so motorcycles are actually very easy although a lot of times the title chain has been broken for a longer period of time so that may start you out with a little more work to do but remember you can do it yourself and nobody needs to charge you money to do this for you.
Exporting Vehicles and Title RequirementsIf you’re looking for a title for your vehicle, it may be because you’re wanting to export the vehicle, and the export process requires that you present a title or other ownership documents. The export requirements are often different from the requirements for getting a new title.
Differing Requirements for ExportIn fact, the DMV has different requirements than things like customs, freight forwarders, or other government agencies that restrict the export of vehicles. One thing to look at is: are you the shipper or the owner? If you’re the owner of the vehicle, that means the title is in your name. If you are the shipper or the shipping company, sometimes you may not be the owner but are shipping the vehicle at the owner’s request. Those are two different things, and the documentation might be different, or you might need the owner to become involved if you’re the shipper.
Case Study: Insufficient DocumentationWe had a case today where we talked to somebody on the phone who actually had a vehicle that was in the US that had been shipped back from China. They tried to ship it from here to China. It made it on the boat from the US, got to China, and the Chinese government would not let it come off the boat because the documentation was insufficient. So it had to come all the way back, come off the boat, and now it’s back in the US pending title clarification and the right documents.
Preparing Before Going to the PortMake sure you fix these problems before you even go to the port. Even if you have the vehicle not on the boat, if it’s at the port waiting for you to fix a title, it’s costing money for storage at the port. You also don’t have control of the vehicle. It can get damaged if it sits for three months without being started or run. It could have other mechanical problems. So make sure you have all the title paperwork cleared up, correct, and in your hands before you even bring it to the port facility.
Customs and title requirementsCustoms is your first obstacle. Even if you try to ship a car as parts only without a title, customs will get involved with a vehicle or even major component parts of a vehicle because they’re trying to prevent stolen vehicles and stolen parts from being exported where you may not need the same type of titling requirements.
After I’ve been spoken with tens of thousands of clients over the years, we see a lot of people being scammed and ripped off by online title companies for things they can do themselves.
Common IssuesJust because you made an error—maybe you didn’t receive a title when you bought a car, maybe you lost a title when you bought a car, maybe the seller misled you and said, “I’m gonna get you the title later,” maybe they said, “Just call DMV and they’ll give you a title”—don’t get ripped off again by paying hundreds of dollars, sometimes more than the car cost, to an online car title company to get you a title.
DIY Title SolutionsYou can do this yourself. If it’s your car, you deserve a title. There is a legal way to get a title no matter what, just because you don’t know it yet and somebody online does. Don’t pay them hundreds of dollars to get a title when you can do it yourself.
Vermont Title OptionIf the car’s 15 years or older, you can get a title from the state of Vermont no matter where you live, and you’re good to go.
Newer Car SolutionsIf it’s newer than fifteen years, there are legal methods depending on where you are and what the process is. You can contact us through our website, consumers title org, and we can go through and show you what those methods might be to get a title.
ConclusionDon’t get ripped off again just because you made a mistake in not receiving a title or losing a title.
There are some illegal title duplication scams that we run into every day. These are ways that people try to get lost titles on cars, and people charge a lot of money to get lost titles for cars using these scams.
Mechanic’s Lien ScamOne of the most common is a mechanic’s lien scam. It’s usually a body shop or a towing company that will use the mechanic’s lien process to get a title for a car. It’s extremely illegal. The mechanic’s lien is supposed to get them a title for a car that they did work on. Did somebody then pay the bill? If they’re using the process to get titles for people that never had anything to do with their shop, you can get in big trouble. There’s people that get arrested for that all the time.
Title Agent ScamThere’s also scams where you actually have to sign over the title to the title agent. Usually, it’s an online company or you have to sign a power of attorney saying that you’re allowing them to sign anything they want to on that car. That, in effect, is signing over your rights of that car to that company that you don’t know who they are. You don’t know where they are. Is it a P.O. box? Are they licensed?
Unlicensed CompaniesThe other scam is exactly that: they’re unlicensed companies. In order to process car titles in most states, you actually have to have a state license to do business specifically for car titling and registration. If you don’t have that license, you’re operating illegally. And if you do business with somebody like that and they do something wrong or they file fraudulent documents, you’re gonna be on the hook for it. You could lose your car, you can get in legal trouble, and those are the kind of things you want to avoid to get a car title.
The Importance of Legal ProcessesThere are dozens of news stories every week. If you do a search on Google for car title scams or car title fraud or illegal car titles, you’ll find dozens of new stories. We see them all the time. You’ll find them on our blog about people who are getting in trouble every day for doing some type of improper or fraudulent process to get a lost title for a car rather than going through the legal process to do it, where you can get a title that won’t be revoked from you at a later date.
Tell us about your vehicle and we'll direct you to a title recovery method that matches your scenario.
"*" indicates required fields
