Out-of-State Vehicle Titling: Strategies to Stay Informed and Safe

Titling vehicles both in and out of state can be a tricky business for both the dealer and consumer because of the various fees, taxes, and regulations involved. Often, used vehicle titling issues begin at point of trade or purchase due to incomplete or fraudulent information conveyed by a seller. There are, however, some simple ways for dealers (and consumers!) to stay alert and safe when engaging in out-of-state titling. Here are some details to keep an eye on:

Inconsistent Vehicle Title History

Inconsistencies regarding ownership, mileage, or maintenance records could mean that the vehicle has more issues than the owner is willing to admit — or the vehicle could be stolen. Unusual transaction patterns — such as under- or over-invoicing and frequent owners in a short time span — can be a sign of money laundering. A quick motor vehicle or title history record search can shed light on any discrepancies.

Outstanding Liens

Vehicles can have multiple lienholders, and unresolved liens can complicate the titling process. Before proceeding with out-of-state titling, confirm via a real-time electronic motor vehicle record that all liens have been satisfied.

Inadequate Documentation

Pay attention to the details of all existing documentation and look out for incorrect or incomplete information. Required documentation and regulations vary based on the vehicle’s type, primary use, and state of title and registration.

Title Washing

Title washing is the act of removing information from a car title by illegal or fraudulent means. Criminals usually wash out-of-state titles for vehicles that have been branded as “salvage,” meaning they’re not usable any longer, to replace with a “clean” title.

Unusually Low Prices

Excessively low selling prices compared to market values could indicate the seller is eager to get rid of the vehicle as quickly as possible, and the vehicle may not be clean — or even legally registered.

Lack of Transparency

Don’t trust sellers who are reluctant to communicate openly and honestly about the vehicle’s history. Withholding information is an indicator that either the vehicle or the seller is questionable. Taking time to verify the seller is who they claim to be through a multi-state driver’s license validation check can save a lot of potential headaches.

Inspection Results

Thoroughly inspect the vehicle to detect any potential issues that may not be obvious right away. For example, if the carpet has been replaced recently, there is a chance the car was involved in a flood. Or if the exterior paint is splotchy, the car might have been in an accident. And if the seats and steering wheel are worn out in a car with low mileage, that could indicate that someone has tampered with the odometer.

Paying close attention to the vehicle buying, selling, and titling process will ensure that you carry out processes legally, ethically, and efficiently. Fortunately, for dealers who utilize Auto Data Direct’s solutions, we handle many of these details.

To learn more about the solutions we offer, contact us.