Title washing scam results from the lack of a unified law regulating vehicle documentation in all the states. Title washing is used by car owners to “erase” the vehicle’s bad history in order to conceal from the buyer that it had a salvage title because of flood, severe accident or other damage. Title washing incidents increased after hurricane Katrina when many car dealers got stuck with excess of flood-damaged vehicles. Title washing is also frequently applied to “clipped” vehicles with the back and front coming from different cars, or rather of what was left of them after a crash.
The process of title washing is very simple. Here is how it is done. A car that is totaled by the insurance company is given a salvage title, which is often called “branding”. Then it can be repaired and resold with a low resale value. So, the car is transferred to states that don’t recognize the current title and assign it a new, clean tile. Title washing erases the branding and the car’s sale value rises again. Remember that title washed vehicles are sold not only by dealers but by individuals as well.
To avoid becoming a dealer scam victim perform VIN number check and get vehicle history report to reveal the truth about the car’s title. Once a car is assigned a salvage title this information is added to the computer database of services that provide vehicle history reports. These records remain in the database even when the car is transferred to other states.
VIN number check will protect you not just from title washing but from many other used car flaws, for example odometer rollback, salvage title or a flood damaged car.
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Hello,
I just found out last night, after trying to trade in my 02 Passat at a dealership, that it has a salvaged title! I paid the loan off last year and it the title I received says nothing of the sort. Carfax has revealed that it was salvaged in Michigan then auctioned off and back to Cali. Ok so now I am a victim of title washing and most importantly, I have no idea how safe my car really is! May not even have airbags!
But what do I do now? Is the dealer responisble? The credit union didnt catch this either. Can I get my money back? I dont believe carfax even existed back then. Who’s responsible? Some advise would be greatly appreciated!
thanks,
Massy
Thank you for the comment on our blog. It sounds like you might have rights against the dealership. I would need more information such as when you purchased the vehicle and where from. If you give us a call (phone 818.990.0418 ) and fax over your purchase documents (fax 818.990.0418 ) I will review and be able to discuss your legal options. Thank you.
Very truly yours,
Hovanes Margarian
Attorney At Law