Are you worried that the car you're interested in has a car history that's been altered? Do you find yourself concerned that the seller is hiding something behind their back with this vehicle? If so, then you might be wondering "what is title washing and how can I avoid it?".
Title washing scams are more common than you'd think. Sellers will use it to attempt to hide things like flood damage, total loss, badly damaged cars, stolen vehicles, and more.
See below for an in-depth guide that highlights what car title washing is, as well as how you can protect yourself from it.
What Is Title Washing
Perhaps this is the first that you're hearing about car title washing. If so, you might be wondering what it is and how title washing works in general. How can someone wipe out a vehicle's history? how are they able to sabotage a vehicle history report?
Unfortunately, even car dealerships are sometimes guilty of car title washing. At its most general definition, car title washing is when someone purposely removes information from a vehicle's history report.
Why would anyone wash a car's title? It's usually done for one of two purposes:
- To hide the identity of the vehicle's rightful lienholder (if the car was stolen)
- To remove proof or branding that records a damaged vehicle
For example, let's say that a car undergoes a significant amount of flood damage and has to have major repairs done to get it running again. Normally, all of the damage and repairs would be included in the branded title.
However, someone (possibly the owner of the car) might attempt to wash the title and remove any proof that there was ever flood damage. That way, they can charge more to the buyer of the car and avoid scaring away the interested buyer with the car's true damage history.
How Is Car Title Washing Performed?
So how does this keep happening? If car title washing is as commonplace as it is, why hasn't it been stopped? Quite frankly, because it's easy to do, and there are multiple ways for corrupt people to cheat the system.
The most obvious is when someone alters the physical title. They simply make alterations to the documentation which is supposed to be the car title, remove all state branding, then get rid of any proof of the repairs, damage, or theft that has taken place.
Another way they can get away with it is if they move the car from its rightful state to another state. This is most common among car thieves. By moving it to a new state, they have the potential to remove the branding from one state—which contains all the undesirable records on it—and switch it out for the new state's branding.
Lastly, the criminal could decide to apply for an entirely new car title. If they're able to get a new title without having to reveal the car's actual history, they can make away with a car title that is unbranded and unscathed. In other words: a dishonest title.
How to Avoid Title Washing
The good news is that there are several things you can do to prevent yourself from falling for a washed title. If you take precautions, you'll avoid any conflict on the matter. See below for the steps to follow to avoid title washing scams.
1. Pay Attention to the Details
Does the offer on the vehicle seem too good to be true? The harsh reality, in this day in age, is that the price likely is too good to be true.
At the very least, a shockingly-low asking price should cause you to raise an eyebrow. Start by using an online vehicle valuation tool to assess the typical value of the car you're interested in buying.
If the price is way below that value range, be sure to ask questions. Why is the price so low compared to its market value? Is there anything in its past you should know about? If they dodge these questions, walk away from the vehicle.
2. Check the VIN Number
A car title can be manipulated. However, the car's VIN numbercannot be. No matter where the repairs are performed or the damage is inspected, auto mechanics are legally required to record it with the car's VIN number.
Anytime that you're looking into buying a car, be sure to get the car report by searching with its VIN. Here is a sample vehicle history report for you to get an idea of what that looks like.
These car history reports will go a long way towards helping you make an informed decision. You will have more confidence when you buy!
3. Don't Just Read the Car Title
The previous point implies this, but it bears worth repeating: don't use the car's title as your only reference to its history. As this article has pointed out, the car title can easily be manipulated.
Instead, be sure to check with the VIN. Once you search, be sure to pay close attention to the history report that you find.
If you're buying used cars, be sure to pay attention to things such as the number of previous owners it's had, whether the car has been sold quickly after being purchased.
Find a Clean Title for Your Next Car Today
Now that you have seen an in-depth guide answering your question of "what is title washing?" and how to avoid the plague, be sure to use this information to your advantage as you search for your next car.
For more inquiries, please be sure to reach out via our contact us page and we will be happy to assist you further.
