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How does title washing work?
Salvage titles are assigned to vehicles deemed a total loss by insurance companies. Salvaged vehicles have a lower market value, they are difficult to sell and, if not properly repaired, may be unsafe to drive. Consumers are advised to avoid them since they’re not a wise investment.
There are bad dealerships who buy salvaged vehicles, have it rebuilt and then sell the vehicles to the unsuspecting public without the brand. The method used to remove the brand is called “Title Washing”. Title washing hides the history of a vehicle that’s been salvaged. Titles are washed by transferring a salvaged vehicle to a state that doesn’t recognize the brand. When the state issues a new title, it may no longer show that it was salvaged. If not, the seller will move it from state to state until the title is washed clean.
Why is title washing a problem?
Consumers lose thousands of dollars and put their lives at risk by purchasing used cars with washed titles.
Salvaged cars with altered titles can be dangerous to drive. In a vehicle that’s been in a collision or a vehicle that has been submerged underwater, the airbags may no longer work. The crumple zones may not perform correctly and the engine is likely to fail at some point in the future.
There are other mechanical issues that could arise and will cost you a lot money in repairs.
How do I protect myself from title washing?
Too often we fall in love with a car and we forget to do our homework. Knowing what you buy and who you buy from are both important to help avoid purchasing a vehicle with a washed title.
So before you pull the trigger, we recommend that you get a Vehicle History Report to find out if the vehicle has a branded title. Get a report from VinAudit. Here, the vehicle history data is supplied by the National Motor Vehicle Title Information System (NMVTIS). States, insurance carriers, and salvage yards are required by federal law to report data to NMVTIS. The report will show all the brands issued by the reporting states. So, if you are looking at washed title, you are likely to see a clean title awarded by the state who does not recognize the brand. Now, on a VinAudit report you will see the any brand that it received from the state where it was previously titled.
Next tip, research the seller’s reputation. Check the dealership’s review online. Read through the customer’s feedback. Contact the local DMV or law enforcement to find out if they have past or existing cases of being involved in selling cars with “washed” titles.
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