By now you'll all be familiar with the amount of title issues taking place in many states. Whether it's Carvana, Vroom etc., you’ve probably seen the headlines where each has lawsuits in many states where they are unable to provide titles to their customers.
“Complaints mount as Vroom customers claim they can’t drive cars over title issues”
“Florida files 47-count complaint against car dealer Vroom over title issues”
“Carvana’s problems pile up after losing license to sell cars in Illinois over title issues”
“Florida threatens to pull Carvana’s dealer license over ongoing title issues”
This as you know creates massive downstream issues, including the ability to register, get insurance and complete on financing.
In the wholesale world, it is critical that titles are available prior to payment, release and delivery of any vehicle. As a wholesale buyer whether you buy directly from a wholesaler, or on any platform whether that is online or in person, knowing you are guaranteed a title is a key differentiator. We have experienced situations where a supplier gets behind on titles, it can be a massive mountain to try to get out from under.
Title best practices:
- Do not pay for a vehicle until you can sight the title such as a title scan prior to payment is mandatory.
- For Canadian imported vehicles, a valid, original Canadian registration is required to get a fresh US title. If your supplier is not getting the registration to you in a timely fashion, withhold funds. We had a supplier that was consistently late with registrations, a $5k per vehicle holdback fixed that problem.
- Make sure the title is assignable and has available assignment spots. Getting a replacement or new title at this point can be massively time consuming and an unnecessary hassle.
- In states where you can roll a vehicle to a consumer without a title being immediately available, creates risk. With title in hand, you know you are safe.
With Signal’s Marketplace, all vehicles we show as available to reserve come with a guaranteed title. You will be able to see a scan of the fresh title, all assignment spots are available and our vehicles do not ship, nor do we ask for payment without a valid, transferable title.