What is Car Title Washing?

Posted by Angel on September 11th, 2019

Title washing is an issue that usually happen in the used-car market. It is a problem that compromises the ability of a potential buyers to get accurate information concerning past damages or accidents that the car may have suffered in the past. 

If you wish to buy a used car, you need to know as much information as possible regarding the car so that you can make a better informed decision. For example, a car that has been previously affected by a major accident or flood may have serious issues that could have significant adverse impact on the long-term reliability of the car. Flood damage can result in electrical and corrosion problems that can be very difficult to rectify. If you don’t have these details, you might be buying a car that might not be good value for your money. 

There are several laws that are meant to protect consumers from ignorantly purchasing used cars that may have been severely damaged in the past. Cars that may have undergone serious collision and flood issues in the past will have a branded car title. There are different title brands that are meant to depict what type of damage a car may have been through in the past. For example, a car that has been declared a total loss because the car has lost over 75% of its value will be issued a salvage title, and a car damaged by flood will be issued by water-damage title. 

To put it in more clear terms, title washing is a process where the seller conceals the real status of the car by altering certain information regarding the car.  

How Title Washing Works

Title washing can be carried out in several ways. One of the means of executing title washing is to move the car from one state to another state. The laws and regulations that govern title branding differs from state to state, and dishonest sellers look for way to exploit these differences to their advantage. For example, if a car has been title branded in one state, it is possible for the seller to move the car to another state where the title brand is not recognized. 

Another method of title washing is to alter the car’s title. The title is a paper document that is branded to show any damage the car has suffered in the past. Some sellers will still find a way around the title by making physical changes to the document that may include removing every evidences of previous branding. 

Another method to carry out title washing is to reapply for a new title for a car without providing or disclosing the car’s history. The current regulations and laws is that title branding is dependent on the report provided by the vehicle insurer and the owner of the vehicle. Hence, if the owner of the car withholds information regarding previous damages when applying for a new title, such information will not reflect in the document and the car’s title may not be branded.  

Title branding is illegal and is considered an act of fraud to deceive prospective buyers.

Read more from http://cartitleloansfinance.mystrikingly.com/blog/finding-a-car-title-loan-online.