Navigating Mechanic’s Lien Process: Safeguarding Against Fraud

The mechanic’s lien process is a valuable recourse for licensed repair shops and storage yards when dealing with unpaid bills on vehicles brought in for repairs or storage. However, this process has become a breeding ground for fraudulent activities, drawing the attention of the American Association of Motor Vehicle Administrators (AAMVA), a quasi-government authority working tirelessly with DMVs to combat fraud concerning mechanic’s liens.

Unraveling the Mechanics of Mechanic’s Liens

A mechanic’s lien serves as a crucial tool for licensed establishments to safeguard their rights and recover unpaid dues. When a vehicle is brought in for repairs, towing, or storage, and the bill remains unsettled, the lien allows the establishment to sell the vehicle to cover the outstanding payment. Notably, this process also wipes out any prior liens on the vehicle, regardless of whether they were settled or not.

Confronting the Fraud Epidemic

Alas, where there’s value, there’s often deception. Mechanic’s lien fraud has become a matter of concern, prompting the AAMVA to spearhead initiatives to counter these deceitful practices. The AAMVA’s vigilance has led to the identification of various fraudulent tactics.

Mechanic’s Lien Fraud Tactics

One prevalent fraudulent tactic is “title brand washing,” a ploy to remove salvage information from the title, concealing the vehicle’s true history. Moreover, some unscrupulous individuals intentionally remove liens without valid lien releases, manipulating the system for their gain. Fraudulent lien claimants may also employ tactics like evading notification requirements, omitting critical vehicle information from notices, or sending empty or meaningless envelopes to lienholders. The AAMVA is well aware of these shrewd tactics and deploys preventive measures to protect consumers.

Fighting Back Against Fraud

To effectively combat mechanic’s lien fraud, the AAMVA recommends conducting physical vehicle inspections before processing any mechanic’s lien title applications. This meticulous scrutiny ensures that the vehicle in question genuinely resides at the repair shop or storage yard. Moreover, verifying repair orders, notification records, bills of sale, and adhering to proper timelines is vital in detecting suspicious applications. To strengthen the defenses against fraud, the AAMVA emphasizes comprehensive employee training and stringent review practices to promptly identify potential red flags.

Consequences of Deception

The ramifications of engaging in mechanic’s lien fraud are grave, extending far beyond mere fines. Individuals involved in such deceitful activities may face criminal prosecution, substantial penalties, and even jail time. Law enforcement agencies and prosecutors relentlessly pursue these cases to protect innocent consumers from falling victim to dishonest practices.

Embracing Legitimate Practices

If you genuinely require a mechanic’s lien, adopting scrupulous adherence to legal processes is paramount. Ensuring accurate documentation, compliance with stipulated timelines, and maintaining transparent sales practices are essential steps to safeguarding your interests. Any deviation from legitimate procedures can raise suspicion and attract unwarranted investigations.

Mechanic’s lien fraud poses a serious threat, prompting regulatory authorities to remain steadfast in their pursuit of justice. It is imperative for both repair shops and individuals to steer clear of any fraudulent activities related to mechanic’s liens and embrace legitimate procedures. By upholding ethical practices and adhering to the law, the mechanic’s lien process can serve as an invaluable tool, ensuring rightful compensation while safeguarding consumer interests.

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Title Loophole No More: Vermont DMV Shuts Down Out-of-State Registration

Have you ever found yourself in a situation where you purchased a vehicle but misplaced the title? For years, there was a peculiar workaround known as the “Vermont title loophole.” It involved obtaining a registration from the state of Vermont to replace the missing title, which allowed you to acquire license plates and ownership documents. This workaround was primarily intended for minor paperwork issues, but some individuals began abusing it to evade taxes, inspections, and other legal obligations in their own states. Unfortunately, due to widespread misuse, the state of Vermont has put an end to this once-legendary process. In this blog, we’ll explore the rise and fall of the Vermont loophole and discuss alternative methods for obtaining a title.

The Rise of the Vermont Title Loophole

In the past, if you found yourself without a vehicle title, you could apply to the state of Vermont by mail for a registration document instead. This registration served as a substitute for the title and enabled you to obtain license plates and ownership papers. All you needed was a bill of sale, which could be signed by anyone, and you were good to go. The purpose of this process was to assist individuals who encountered minor paperwork issues and needed a temporary solution until they could obtain a proper title from their own state.

However, what started as a helpful solution quickly turned into a means for individuals to avoid taxes, inspections, and other legal requirements in their home states. Some people would acquire a Vermont registration to circumvent the need for inspections in states like California, where registration requires proof of inspection. By affixing a Vermont plate to their vehicle, they could drive without meeting their state’s inspection standards. This abuse of the Vermont loophole became increasingly prevalent, attracting attention from various media outlets, including Car and Driver, Motor Trend, and Jalopnik.

The Downfall of the Vermont Title Loophole

The widespread misuse of the Vermont loophole ultimately led to its demise. The state of Vermont, faced with the increasing number of individuals engaging in fraudulent activities, decided to close the loophole. People were registering stolen cars or creating their own quasi-DMVs, exploiting the system beyond what was intended. Vermont made the difficult decision to cease registering vehicles from out of state, as reported in an article on the subject. It was a necessary step to prevent further misuse and restore integrity to the registration process.

Exploring Alternatives

Although the Vermont loophole may have closed its doors, there are still alternative methods to obtain a title for your vehicle. Instead of relying on this now-defunct process, you can explore options such as acquiring a bonded title or obtaining a court-ordered title in your own state. These methods have been available for a long time and offer legitimate ways to resolve title issues. It is essential to understand the specific regulations and processes within your state to ensure a smooth and legal resolution.

The Vermont loophole was once a legendary process that provided a temporary fix for individuals with missing vehicle titles. Unfortunately, it was misused by many who sought to evade taxes, inspections, and other legal obligations. As a result, the state of Vermont decided to close the loophole and cease registering vehicles from out of state. While the closure of the Vermont loophole is a setback for some, alternative methods like bonded titles or court-ordered titles remain available. It is crucial to pursue legal avenues to obtain a title and ensure compliance with your state’s regulations. Remember, shortcuts may lead to consequences, but there are always legitimate paths to follow.

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No Lien Release Department? No Problem! Your Guide to Resolving Liens with Lenders

For many years, we have discussed obtaining a lien release for a vehicle, even with outstanding debts. We have explored the steps involved in acquiring a lien release, and recent developments regarding a company named American Car Center have brought this topic to the forefront. This underscores the importance of validating the method and suggestions we have been advocating for over a decade on how to ultimately obtain a lien release. 

Now, let us delve into the backstory of American Car Center’s closure and the process of obtaining a lien release.

So, here’s what happened: American Car Center, a sizable dealership organization with approximately 40 or 50 locations across the Southeast, operated by selling cars to customers and providing in-house financing. Essentially, they functioned as a “buy here pay here” lot, where customers financed their purchases through them and made payments directly to them. Once the payments were completed, customers would receive the title for their vehicle.

However, an unfortunate circumstance arose when American Car Center went out of business. This situation gave rise to a multitude of issues concerning outstanding payments, the ownership of the title, and other related complications.

We have been recommending a specific approach for years if you possess a vehicle that has been either charged off or written off and has any uncertainties regarding the title or lien release. Our suggestion is to request a lien release directly from the lien holder. 

However, paying attention to how you initiate this process is crucial. It is not advisable to handle it over the phone or through email, nor should you attempt to resolve it by simply calling them. The most effective course of action is to personally visit the lien holder’s office.

What you want to do is do it in writing in a very specific way. You prepare the document that’s a lien release, print it, mail it to them for signature put a return envelope with the self-addressed envelope. 

And so when this American car center went out of business, a lot of people reached out to the better business bureau. Brian Oglesbee from the Better Business Bureau has provided guidance on this matter. “Customers uncertain whether they should continue making payments have expressed their concerns,” According to the BBB representative, “some customers have fulfilled their payments but have yet to receive the car title.” The BBB advisors recommend that these customers request a release of lien form from the DMV and subsequently send it to the finance company.

Make the process convenient for them by providing a self-addressed stamped envelope, as most companies lack a dedicated department for form completion. This way, you simplify the procedure. Customers can easily send the completed forms back and receive the lien release. It closely aligns with what you previously mentioned. 

We have repeatedly emphasized that most companies lack a specific department for lien releases, and this Better Business Bureau representative has corroborated that. They have confirmed that this approach is the most effective means of obtaining a lien release for your vehicle. Companies may even grant a lien release despite outstanding debts if you approach them correctly.

The controversy surrounding American Car Center is not to be taken lightly; it has evolved into a significant crisis that has jeopardized the titles of tens of thousands of individuals. Therefore, it is imperative to ensure that you make the correct request. Avoid doing it over the phone; certainly, if you are still making payments, it is crucial to continue doing so. However, it is equally important to ask for a lien release. Witnessing the availability of solutions for consumers in such situations is reassuring. Our aim is to prevent any unfortunate outcomes where you may lose both your vehicle and the substantial investment you have made over time.

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Will Used Car Prices “Go Back to Normal” Anytime Soon?

So, what is going on with used car prices? Was this recent little blip and drop in price just a head fake, and will it be only a drop in the bucket? If you’re in the market for a used car, now might be the time to buy because they may go up again. You might be expecting used car prices to crash, but here are some big headlines and data behind the scenes that show why that might be the case.

First of all, according to CNBC, there may not be a return to normal for the used vehicle market. There was a decline in price through the end of last year in 2022, but inventories remain low, and the pause in production might make used cars back up on the upswing.

We’re seeing that already used car prices are surging again. This is from March 30th, so whenever you’re watching this, it’s the beginning of 2023. According to the article, it says, “Nice while it lasted for nearly a year.” The average used vehicle price has been edging towards affordability for millions of people. It didn’t crash; it’s edging up slowly. The relief felt belated and slight, but it was welcome. However, the supply of used vehicles is failing to keep up with demand, and prices are creeping up again, with signs pointing to further increases.

Why is that? Well, you’ve got to remember that during 2020 and 2021, new cars were not produced at the same volume as in the past. So now, in 2023, a three-year-old used car is a 2020 model. They hardly made any new cars in 2020. Therefore, the amount and volume of available inventory are meager because we’re going through that dip where new cars weren’t produced at the time. At the same time, the demand for used vehicles is going through the roof. People want to buy used cars. Why is that? Here’s why.

New cars are now at an average transaction price of $50,000. So, the executives at Toyota say we’ll soon be paying $50,000 as the average transaction price for new cars. The average new car transaction price is around $47,480, and it’s only going up. The used car market isn’t going to slow down either. So, many factors are at play that put pressure on used car pricing, pushing them upward. Therefore, if you’re looking for a used car, that may be a problem.

It also comes in at the lower end, in the three or $4,000 range. Let’s take a look. According to one dealer, many customers can’t afford either new or late-model used cars. Some potential buyers he knows are using tax refunds to make ends meet. Used, inexpensive cars are now becoming more of a luxury. The market needs vehicles that are three, four, and $5,000 right now. Behind the vehicle shortage and inflated prices is the principle of supply and demand. It’s elementary, right? Again, they repeat that new cars are priced at $48,000, which is beyond reach for many. This will not make a return to what they call “normal.” Notice “normal” means what it was four or five years ago. That’s history. 

In 2018 or 2019, there were plenty of new cars being produced. You could buy a nice new car for $30,000 to $35,000. And in 2014 or 2015, there were tons of vehicles produced. So, a three-year-old used car was easy to find in 2018, right? If you’re in 2018 and looking for a three-year-old car, 2018 minus three is 2015. In 2015, there were around 12 million to 14 million new cars produced. There were plenty of them around.

Well, now fast forward to 2023. If you go back to three years ago, few cars were produced, and the new cars had a much higher price. So, all these factors are coming together to make finding a good used car for a decent price difficult. Additionally, with the high-interest rates, one of these articles shows that the used car interest rate is now 11%. So, you went from 8% to 11% in one year, and that’s going to have a significant effect on your ultimate car payment.

If you get a three-year-old car, you can get a four-year loan, resulting in a much higher payment than a five-year loan on a new car at 11%. You know, you’re looking at monthly payments of six to $700 for a used car. New vehicles are even worse. New cars are averaging about a thousand dollars a month for the price of a $50,000 car. So, keep this in mind as you’re shopping. And if you know you’re going to need a car in the next couple of years, now might be the time to buy because it’s possible that the prices won’t go any lower and they might start creeping back up.

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What’s Your Vehicle Worth? How To Get Your Vehicle Appraised

When it comes to titling older, Highline, or specialty vehicles, vehicle valuation is a frequent concern. Often, an appraisal is necessary to establish the vehicle’s clear value. Sometimes, the value is overstated for taxes, and an appraisal is needed to demonstrate the accurate value. Conversely, some individuals may not be aware of their vehicle’s value. So, how can you determine the correct value? 

We had a recent conversation with a company called Auto Appraise, and please note that we are not affiliated with them and do not profit from them. It is simply beneficial to know that there are professionals in this industry who can assist you. The appraisal is frequently required for probate cases where an estate with vehicles needs to be sold, and their value must be established. In other instances, legal matters, such as court-ordered titles or judgment liens against the vehicle’s owner, necessitate determining the vehicle’s value. It is essential to have an expert with documented experience in these cases. As we know from our investigative work if a person’s opinion cannot hold up in court as an expert witness, putting it on paper may not be worthwhile. Working with an individual with provenance and appraisal experience is crucial when dealing with disputed amounts. 

However, conducting an appraisal to save a few hundred dollars on taxes is not worthwhile since appraisals can be quite costly. For instance, if you’re following the Vermont process and have a bill of sale for $3000 while the book value is $8000, and you don’t want to pay taxes on the additional $5000, you’ll only be charged about $300 in taxes. It makes no financial sense to pay hundreds of dollars for an appraisal to save $300. However, if you own a vehicle worth well into the five figures, such as $50,000 to $60,000, and the book value overestimates its worth, it may be worth considering an appraisal. Similarly, for specialized probate cases, an appraisal may be helpful. 

When selecting an appraiser, ensure they have the appropriate credentials or license that the jurisdiction or venue that requests it will accept. For example, if it is necessary for the court, verify that the court will take it. If you need an appraisal for the DMV, ensure it is the type of appraisal the DMV will accept. It would be best to speak with the appraiser, such as the company mentioned here, to ensure they have the appropriate experience, reviews, and background, particularly for classic, specialty, or Highline vehicles. Although they may also appraise new cars, it is worth investigating. If you require additional information about appraisals, contact us at our help desk at help@cartitles.com.

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How To Get Rid Of A Car Without A Title

Are you stuck with a car that doesn’t have a title? It can be frustrating to figure out what to do with a vehicle you can’t legally sell or dispose of. In most states, selling or disposing of a car without a title is illegal. However, several options are available to you if you need to get rid of a car without a title. In this blog post, we’ll discuss how to get rid of a car without a title and provide guidance on the different ways to do it.

Why is getting rid of a car without a title so challenging?

Getting rid of a car without a title can be challenging because the title proves legal ownership of the vehicle. Without the title, the junkyard, dealership, or private buyer cannot verify that you own the vehicle they’re about to purchase and can legally sell it to them. Moreover, it raises the concern of outstanding liens on the title. Without a clear title, a buyer or a junkyard may hesitate to purchase the car due to the risk of inheriting any outstanding debts or liens.

File for a duplicate title

If you’re the car you’re trying to get rid of is titled in your name, but you’ve lost the title certificate, the best course of action is to file for a duplicate title. A duplicate title is an exact copy of your original title and can only be obtained by the current titled owner and from the state where the vehicle was last titled. If you’ve moved states and need to replace your title, you must apply with the DMV agency in your previous state of residence. Once you’ve obtained your duplicate title, you can legally sell or dispose of your vehicle.

Use a title recovery service

If you were not the last titled owner of the vehicle and you’re looking to get a title, consider using a title recovery service like CarTitles.com. You can use various methods to get a new title for a vehicle, each with varying requirements. While these options may be useful, they may not be the best route for you if you’re not planning to keep the car, as they can involve out-of-state loopholes, surety bond requirements, or a court filing. Remember, only the current titled owner can legally sell or dispose of the vehicle. If you plan to sell the car after getting a title, you’ll need to get the title in your name, and an expert title recovery service can assist you in this process. 

File for an abandoned vehicle removal

As a last resort, and if you do not want anything to do with the vehicle going forward, consider filing for an abandoned vehicle. Each state and county has it’s own abandoned motor vehicle (AMV) process, so check with your local DMV for the procedures in your state. Remember, abandoned vehicles are not “finder’s keeper’s” scenarios. If you genuinely want to get rid of the car without a title and have no further interests in it, filing for an abandoned vehicle will get it removed from your property. The AMV process typically involves a police report or DMV report, the vehicle will be towed, and the DMV will handle the disposal from there. 

All in all, it’s challenging to get rid of a car without a title, but there are options available. Whether in your name or just randomly shown up abandoned on your property, these title methods can help you get rid of any car without a title. Remember, the current titled owner is the only authorized party to sell the vehicle. If you’re not the owner, do not attempt to sell the car.

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Clean VIN Search Doesn’t Guarantee a Clean Title Status

Looking for a reason why you should never buy a car without a title? A perfect example of this occurred in Texas, where a woman was attempting to sell a vehicle without a title at a discounted price, but it turned out to be a rented car she was now trying to sell. You may think that if you buy a car with a bill of sale, and you check to see if it’s stolen or has liens, and it has a clean title, you’re in good shape. However, here’s the catch: if you were trying to buy the car from this woman and did a title check on it, it wouldn’t show any liens because it’s a rental car, and it wouldn’t show stolen because she rented it. You might assume that everything is okay, but unless you are physically handed a title at the time of purchase, and that title is valid (meaning that the name of the person on the title is the same as who you’re buying it from, it’s properly signed over, and it’s a legitimate title), you still could have problems. If you’re not getting a title, you risk losing all your money unless everything goes right with your title recovery.

Title recovery vs. Title transfer

Title recovery is different from just a title transfer. When you buy a car and receive a title, you simply sign the back, and it gets transferred to your name by the DMV. However, if you don’t receive a title when you buy it, you’ll have to go through a lot of hassle to obtain it. A bill of sale by itself is often not enough to get you a title, like in this case. If this person gave you a bill of sale, it wouldn’t help you get a title. It’s just a receipt of somebody taking your money, and it doesn’t prove that you’re the car’s owner, nor does it prove that they were the car’s owner. Therefore, a title check might be something that you think will clear things up, but if you did a title check on this person’s car, it won’t be reported stolen, have any liens, say salvage, or have back taxes. It’ll all look legitimate, like a clean title, but you’ll be out of your money. For instance, she tried to sell it for $10,000. If somebody paid her $10,000 and took the car, and once it was found out that the car was a rental, your title would be revoked, and you would be out of your money. The rental car company won’t give you their car for free, and you won’t be able to get your money back from the scammer because they probably spent it. So, you’re out of your hard-earned money.

So, the moral of the story is: do not buy a car without a title because you’re putting yourself at risk. The risk is still present even if you buy an old barn-find cheap car without a title. Until you have that magic certificate issued by the government of a title with your name on it, your money is completely at risk. There are a lot of things that could come up that keep you from getting a title. However, all the tools and resources to try to get a title are available on our website. But remember, until you have that clean title in your hand, your ownership is at risk because you’re not considered a legal owner until the title is issued by the government with your name on it.

No title? No problem!

CarTitles.com takes the hassle out of getting your car title. If it’s your car, you deserve a title in your name.

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Protect Yourself from Title Industry Scams and Frauds

Even the title industry isn’t safe from scammers and fraudsters. In fact, instances of fraud in the title industry occur on a daily basis. In this article, we’ll review two recent cases of title fraud and discuss how to avoid becoming a victim.

One individual’s story exemplifies a common scam in the title industry. This man submitted counterfeit vehicle titles for a car he claimed to own and then falsely reported it stolen to the insurance company. Eventually, he was apprehended for both false reports and title washing. Title washing is a process where a valid title of a car is employed to eliminate the title of another vehicle with an issue, such as a lien or salvage. In this instance, the car was supposedly stolen, and the VIN was tampered with. Some individuals may attempt to modify the VIN, particularly on older cars, to make it appear as if it belongs to a legal vehicle or one with appropriate documentation.

Another case involves a scrapyard that possessed a total of 80 counterfeit titles. The scrapyard accepted numerous counterfeit vehicle titles or stolen cars in exchange for money. Several counterfeit titles had a previous history of being stolen by their owners, while others contained forged signatures from the company or lacked a notary. Some even lacked junk and non-repairable designations. The individual implicated in this case engaged in title washing to eliminate the junk designation and sell the car. They also possessed titles with forged owner signatures, and some bills of sale had fake VINs. It’s important to note that VINs cannot be fabricated as they are issued, and each VIN is registered in a system, making it easily traceable.

Verifying the authenticity of your title applications is essential. Moreover, if someone is performing title work on your behalf, ensuring that they aren’t fabricating or filing counterfeit titles is critical. Remember that you cannot outwit the DMV, which handles thousands of titles daily and has seen all the tricks in the book. Although fraudulent activities may seem to succeed initially, they will eventually catch up to you when the documents are compared to previous records or papers.

To sum up, the title industry has several instances of fraud and scams. Nevertheless, taking necessary precautions can prevent being a victim of these activities. Confirm that any title applications you submit or have submitted on your behalf are genuine. Be careful when dealing with anyone who offers to sell a car with a doubtful title. Don’t let fraudulent activities cause your title to be revoked.

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How Hard Is It to Get a Title for an Old Car?

Is obtaining a title for an old, beat-up car in lousy condition easier than getting a title for a new car? This is a common question when someone faces difficulties with the DMV in obtaining a title. They argue, “It’s just an old car. It shouldn’t be that hard to get a title.” However, here’s the reality: the DMV does not differentiate how difficult it is to obtain a title based on the car’s worth. Whether you have a $10 million car or a beater, it is equally challenging to get a title. 

This is because the DMV does not know the car’s value simply because it’s old or beat up. Some old vehicles hold a high value, and it’s not the DMV’s responsibility to determine a car’s worth. The fact that a vehicle is old or in poor condition doesn’t mean it’s not worth a lot. For example, suppose you came across an old ’69 Yanko Z 28 Camaro in terrible shape. In that case, it could still be worth $300,000 when restored. The DMV cannot give you a title without the proper documentation, as doing so would transfer someone else’s vehicle ownership to you. This is not allowed, even if the car is in bad condition.

By the same token, if the DMV made it harder to get a title because a car was worth more money, that wouldn’t be fair either. A car is a car, and its worth doesn’t matter. Even if a vehicle is only worth a hundred dollars to someone, that person might not want to lose it. Therefore, if the DMV is issuing titles to cars simply because they’re old or low in value, they are not protecting people’s property rights, which is the real purpose of getting a title. Getting a title is not just about you receiving a title; it’s about taking it away from someone else. Once you have a title with your name, other people’s rights to that vehicle are extinguished. The DMV effectively declares that nobody else owns the car anymore. 

However, someone else might have legitimate rights to that vehicle, and just because a car is old and beat up doesn’t mean you get to claim it without regard to anybody else’s rights. Therefore, remember that a car’s age or value does not make it any easier to obtain a title. If the car is legitimately yours, with no liens, salvage, or any other issues, and nobody else has any rights to the vehicle, you should have no trouble getting a title.

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Watch Out For Title Problems From Dealers Going Out Of Business

When you purchase a vehicle from a dealership, you expect to receive the title and lien release, which proves ownership and allows you to register the car. However, what happens if the dealership goes out of business before you receive these essential documents? Two potential problems could arise – your vehicle’s title and lien release. Let’s discuss what you need to know if your dealer goes out of business.

Recent news about the popular retailer Carvana has brought this topic to the forefront. Carvana is currently experiencing serious financial problems, reporting a loss of $1 billion in the fourth quarter of 2022. While they may restructure and survive, losing a billion dollars and 90% of their stock price is a significant setback. So, what should you watch out for if you purchase a vehicle from Carvana or any dealership that may be at risk of going out of business or losing their license? And what happens if you haven’t received your title yet? 

Tips to prevent used car title problems with dealerships

One potential problem that could arise if your dealer goes out of business is that you may never receive your title. When you buy a vehicle, you need the title to prove ownership, but obtaining ownership can be difficult if the dealer is no longer in business. While most states have licensing laws that require dealers to post bonds to help customers get a title, it can still be a big mess to sort out.

To avoid this situation, we recommend asking the dealer to show you a copy of the title before you give them any money. This is important whether you are buying a new or used car, as it can help you avoid potential issues down the line. However, this can be tricky if the dealer sells vehicles on a floor plan, which means they have a line of credit from an auction, bank, or finance company to buy the vehicles. In this case, the bank or auction may hold the title until the dealer pays off the loan. If the dealer sells the vehicle before paying off the loan, they won’t have the title to give you, and you won’t be able to put it in your name.

Additionally, even if the dealer has the title, it can still get lost or damaged. This is why it is crucial to take every step you can to protect yourself when buying a car, especially from a dealer that may be at risk of going out of business or losing their license. By being proactive and doing your due diligence, you can avoid potential headaches and ensure a smooth vehicle ownership experience.

If you’re planning to buy a car from a dealer, especially one with some risk of not being around in the future, we highly recommend asking to see the title. They don’t have to give it to you, and they can cover up the owner’s name, but if they have the title in their hands, it can give you a lot more peace of mind. Knowing that you won’t be stuck without a title is crucial, especially if the dealer goes out of business.

What to do if your dealer went out of business

But what if you’ve already purchased a vehicle and currently have title problems? In that case, you need to act quickly. Send notices to the dealer, the titling authority, and their licensing authority immediately to ensure you are not lost in the shuffle. Remember, the early bird gets the worm. If the dealer has titles they need to pay off from a floor plan because they’re short on cash, being persistent can help ensure they pay off yours first.

You don’t want to be the person whose title processing is last because it can lead to problems down the line. Your registration could run out, your temporary tag could expire, and you could get pulled over, have your car towed, and be out of luck. Being at the front of the line, not the back, is essential.

Many dealers may be running into financial problems, not just Carvana. But any dealer in financial trouble could pose a risk for buyers when it comes to obtaining the title. You don’t want to be the person who pays good money or owes money to a bank and doesn’t get a title. If you run into title problems, you can protect yourself and ensure a smooth vehicle ownership experience by being proactive and taking action.

In conclusion, you must look out for title problems when purchasing a vehicle from any dealer. Unfortunately, it can happen anywhere, even with reputable dealers. If the dealer loses the title before putting it in your name, you could be left hanging for a long time.

At our company, we handle a lot of titles for auctions and dealers, and we’ve seen situations where the dealer bought a car from an auction, had the title in their briefcase in their car, and the briefcase got lost or stolen. In those cases, getting the title back can be difficult, and the dealer cannot apply for a duplicate title, contrary to popular belief.

To protect yourself from potential title problems, make sure to take the necessary steps when purchasing a used car, such as asking to see the title and ensuring that the dealer is reputable. Stay informed, and don’t hesitate to contact us if you have any questions or concerns about title issues.

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