Title Washing

by FABIOLA CASTILLO

Crime is everywhere and all around us. Not all crime is requires the use of stun guns or pepper spray to thwart a potential assault or robbery. Some crimes are perpetrated by white collar or blue collar people who take advantage of others when they least expect it.

All over the country, vehicle documentation laws lack consistency. This results in a practice known as "title washing" which allows vehicles to lose their salvaged or flood-damaged branding.

Following hurricane Katrina that struck the Gulf states, many car dealerships in that area were stuck with a lotfuls of flood-damaged cars. Having known that, very few people would purchase one of these vehicles. Because of this trend, several car dealers have engaged in a practice of "title washing." Its purpose is to hide the fact that the car has been salvaged, flood-damaged, or hail-damaged. Salvaged titles are awarded to cars that are considered a total loss by insurance companies. Salvaged titles brand a vehicle which is put in a different light in the mind of a buyer. This means that the vehicle has a lower market value and is difficult to sell.

How is Title Washing Done?

Washing a title allows dealers and private individuals to remove the salvaged branding from car titles to minimize their losses. Titles are washed by transferring a salvaged vehicle to a state that does not recognize the salvage. When the state issues a new title, it may no longer reflect the fact that it had been salvaged. If not, the seller will move it from state to state frequently until the salvaged branding is gone. When it is gone, the car's history will have been "washed" clean.

Get a Vehicle History Report

Title washing is considered dishonest with the intent to deceive the public. However, potential car buyers can run a vehicle history report which tracks a car's history even it it has moved to another state. Once a vehicle has been branded and that information is reported to a vehicle history report service such as Carfax or AutoCheck, it stays in their records no matter what. The paper title will no longer indicate a salvaged vehicle, but a vehicle history report service will. Keep in mind that title washed vehicles are sold by private sellers as well as car dealers. Do not assume that because you are buying a car on a lot that its title has been washed clean. If possible, get a title guarantee from the seller or dealer in writing. This should not be too difficult if the seller is an honest dealer.

How to Report Title Washing Fraud

If you believe that a local car dealer is defrauding the public by selling a salvaged, flood-damaged, or hail-damaged vehicle as a good condition used vehicle, call your auto insurance company, local law enforcement agency, or the National Insurance Crime Bureau at 1-800-TEL-NICB.

Fabiola Castillo is an online marketer for the website NinjaCOPS.com. Her virtual store specializes in personal defense products where you can buy pepper spray, kubaton keychains, wireless hidden cameras, nunchaku technique videos, wholesale stun guns, expandable steel batons, and many other home security products.