Can You Turn a Salvage Title Into a Clean Title?
We’ve all heard stories that someone took a salvage title and made it clean again. Dealerships even advertise that they can do this for you. Despite the rumors, there is no way to make a salvage title clean again. Scammers can make titles appear to be clean by obtaining an illegal title. Run a VIN check or vehicle history report to make sure the title is clean.
Illegally obtaining a false title is a federal offense called Title Washing. An illegally altered title can be exposed by running a VIN Check prior to purchasing the car.
As a car buyer you should be aware of the illegal methods used to wash a car title, so in this post we will be discussing them in detail.
Can You Make a Salvage Title Clean Again?
No, but a scammer can make a title look clean when it really isn’t.
Every year, people call and tell us something like this:
“My friend owns a car dealership and he says you can make a salvage title clean again.” Or worse:
“My car used to have a salvage title, but the dealership said they fixed that before I bought it – now it’s clean.”
As we say in the South, if you pull a person’s leg too hard it’s liable to come off. Those statements might sound plausible but they have a major flaw. A car’s title history is archived by the DMV and your state’s government. That history is unchangeable even if you say pretty please with sugar on top.
So, is it possible to make a salvage title clean again? Can a salvage or rebuilt title become clean? Can a salvage title be changed to clean? No, but scammers can make a title appear to be clean illegally. Doing so is a felony and doesn’t erase the car’s title history with the DMV.
Let’s break that down.
Altering a Car Title is a Felony
Falling under the umbrella of Auto Dealer Fraud Law, it is a federal offense for a car dealership or private party to misrepresent the title status of a vehicle or alter its odometer reading. That includes:
Misrepresenting the title status (aka Title Washing, a felony)
Presenting a fake or altered car title (aka Title Washing, a felony)
Lying about the vehicle’s mileage (aka Odometer Fraud)
These crimes are usually committed in two ways. A non-disclosure is when the seller intentionally withholds information that would negatively affect the value of the vehicle, like its history as a fleet vehicle, a prior salvage history, or flood damage.
An affirmative misrepresentation is when the seller intentionally advertises inaccurate details about the vehicle or glosses over the facts during the selling process. It’s a fancy phrase for a bold-faced lie.
The Truth Cannot Be Hidden: A Car’s Title History Will Never Change
The title history maintained by the DMV and state government is tied to a specific VIN number, so it won’t change even if someone produces an illegal title for that vehicle. But the physical paper title could appear to be clean while the title history says otherwise; this deception is far too common, but as a buyer you have ways to protect yourself.
Let’s look at a well-known example of these crimes in action which is covered in more detail in the article linked below.
Texas Dealership Loses Title Washing Lawsuit
In 2013, one Mr. Garrett Grable of Painesville, Ohio found a 2007 Dodge Ram on the website of a car dealership located in Houston, Texas. A one-owner truck advertised with 83,907 miles and no previous accidents, this Ram looked like the perfect buy at right around $26,000.
Mr. Grable flew to Houston to purchase the Ram. He discovered the dealer hadn’t mentioned the truck had bad tires, but they quickly agreed to deduct $900 from the truck’s price so Mr. Grable could buy a new set. The deal went through, Mr. Grable drove home to Ohio, and for three years he was a happy man with a nice Texas truck.
When he decided to upgrade in 2016, he took the Ram to a dealership in Ohio for a trade-in evaluation. The dealer ran a vehicle history report which revealed that in 2010 – three years prior to Mr. Grable’s purchase – this truck had three reported owners, multiple reported accidents, and a reported 170,000+ miles on the odometer.
Two years of legal action would eventually determine that the dealership bought the truck at auction with no title, obtained an illegal title, and fraudulently sold the truck to Mr. Grable without disclosing those facts. Found guilty of odometer fraud and title washing, not to mention non-disclosures and affirmative misrepresentations, the dealer was ordered to pay $52,500 in damages and an additional $76,000 in legal fees.
In short, it is possible to obtain an illegal title for a vehicle which could cover up a salvage title status on the surface – but the car’s title history would not change and those facts can always come to light.
How Do You Know a Car Title is Legitimate?
Purchasing a VIN Check would have saved Mr. Grable a heap of hassle. It’s the single smartest thing you can do before buying a used car and the only way to be sure a clean car title is what it appears to be.
Is a vehicle history report worthwhile?
Licensing, registration, and taxes account for nearly 10% of your expenses when buying a new or used car. A surprise salvage history could cause a vehicle to lose up to 40% of its value; knowing about it beforehand could save you from making a bad purchase. With 50% of your investment hanging in the balance, spending a few dollars on a vehicle history report is a no-brainer.
Trust your instinct
You can always walk away from a deal, even if you’re standing in front of your dream car with cash in hand. Remember that it doesn’t matter how nice the seller’s story sounds if the evidence doesn’t add up. If you ever get a bad feeling about a vehicle for any reason, trust your instinct and walk away.
Dirt Legal can help
We offer VIN Checks to help you make the best car buying decision possible. These will reveal the title history including details about previous salvage title claims and any other accidents on record along with many other helpful facts about the car.
If you have any questions about our services or car titles in general, please don’t hesitate to contact us and we will be glad to help. Click the buttons below to learn more about our services.
We are not attorneys. This article is not legal advice.