Auto Dealer Title Washing

You’re always taking a chance when you buy a used car from a dealership. If you’re not a mechanic, you can only get an overview of the vehicle’s condition. You have no idea what happened with the previous owners, including any prior accidents or flood damage. The car’s title should help assure you the vehicle is in drivable condition. Unfortunately, shady dealers can use title-washing to hide the vehicle’s damaged history.

Title-washing is against the law. If you bought a car with an altered vehicle title, you can sue the dealership for damages. Talk to a dealer fraud lawyer about your legal options after a title-washing scam.

What Is Title-Washing for a Used Car?

Title-washing is a type of vehicle sales fraud that falsely increases a vehicle’s value. Totaled or rebuilt vehicles have salvage or rebuilt titles. Fraudulent car dealers can remove evidence of the actual title brand to make the vehicle appear clean. You would have no idea you’re buying a totaled or defective vehicle. Title-washing can also cover up a stolen vehicle.

There are different types of vehicle title branding. A title brand is a permanent indication of the vehicle’s history on the title or registration. Different types of title brands include:

• Rebuilt
• Salvage
• Irreparable
• Wrecked
• Theft recovery
• Flooded car
• Odometer rollback

Dealers can buy a car designated a total loss in one state and get a new title in a different state. With a clean car title, it appears that the vehicle has a clean history with no salvage vehicle record.

Title-washing scams allow shady dealers to buy damaged cars at a very low cost. They can then fix up the vehicles enough to trick unsuspecting buyers into thinking it’s in good condition. Shortly after, you begin having problems with the vehicle. Once another dealership or buyer notices the car’s title-washing, you’ll be unable to sell the vehicle.

Does Title-Washing Show Up on a Vehicle History Report?

Some dealerships offer a vehicle history report when buying a used vehicle. Common services include Carfax and AutoCheck. A Carfax report can show information about the vehicle’s history by tracking the VIN and previous owner information. This can help you watch for possible title-washing, odometer fraud, or other types of dealer fraud.

However, a vehicle history report may not show all possible title-washing. Carfax and AutoCheck rely on reporting from car dealers and mechanics. Vehicle history reports can identify some examples of title-washing, but they don’t provide a 100% guarantee. If you’re concerned about the vehicle’s history, get an independent inspection.

How Do You Know if a Car Has a Clean Title?

The National Motor Vehicle Title Information System (NMVTIS) is a national system that helps track motor vehicle fraud. The system can verify title and brand between different state DMVs and vehicle titling agencies.

Salvage yards that receive damaged vehicles must report the vehicle identification number (VIN) and other information to the NMVTIS. The NMVTIS has made it more difficult for criminals to engage in car title-washing by registering and sharing used vehicle title brands.

You can also protect your automotive purchase by getting an inspection from a repair shop you trust. Many consumers can’t identify signs of tampering or natural disaster damage. An experienced mechanic can look for signs of damage that are not indicated in the car’s history.

Can You Sue the Car Dealership for Title-Washing?

Title-washing is a federal crime. It’s also a criminal offense in many states. Car buyers defrauded by title-washing can also sue dealerships in civil court. When dealerships misrepresent a vehicle’s title history, and you rely on the fraudulent title, you can sue the dealership in court. Damages in a title-washing scam can include:

• Actual damages
• Statutory damages
• Repair or replacement costs
• Attorneys’ fees
• Punitive damages

Can an Auto Fraud Lawyer Help After Buying a Car With a Washed Title?

You invest thousands of dollars when you buy a vehicle. Make sure you do your research before making such a big investment. If you think the dealership is trying to trick you, just walk away. If you’ve already bought the vehicle and then suspect a scam, talk to a dealership fraud lawyer.

An auto fraud lawyer can help you get your money back after the dealership ripped you off. Contact a dealer fraud lawyer to understand your legal options after a title-washing scam.