What Is Title Washing, and How to Detect a Washed Title Car?

It is always recommended that car buyers perform a title check on any vehicle before purchasing it. These reports show any past damage, repairs, or outstanding debts that may devalue the asset or endanger you.

However, some unscrupulous car sellers are determined to hide these harmful elements. They perform a title wash, allowing them to trick people into paying significantly higher prices. So, you must be able to notice the signs of a washed title early in the buying process.

What Is Title Washing?

Title washing is the process of removing information about an unfavorable condition from a title to make it easier to sell. It conceals the vehicle's condition, gaining leverage when dealing with prospective buyers.

For example, a car that has gone through multiple crashes may have lasting body damage, making parts more quickly deteriorate or prone to failure. A scammer removes these events from the title, tricking victims into buying the car under false pretenses.

In many cases, a title washer will urge the buyer to review the vehicle's history and title. This act creates a more trustworthy persona but is just a front to prevent the buyer from digging any deeper.

How Does Title Washing Work?

There are three main ways that someone can wash a vehicle title. These methods vary in difficulty, but the extra work can make the lie harder for authorities to detect.

Transferring the Title to Another State

States "brand" car titles that have suffered extensive damages that make the vehicle unsafe to drive. Common causes for a brand involve manufacturer recalls, extensive damage, and issues with vehicle safety features (odometers, seatbelts, airbags, etc.)

The qualifying reasons for branding change between states. This variance allows scammers to retitle their vehicles in more lenient states and receive an unbranded bill of health. First-choice states include Texas, California, Washington, and Georgia.

Applying for a New Title

It is possible to title wash without moving states, but there are more prerequisites. The vehicle owner registers for a new title, claiming they don't know the car's history.

Many state branding processes rely on reports from the associated insurance company since they are the only information source other than the owner. There is no in-person inspection when applying for a new or replacement title. So, if the owner did not report damages, then the agency has no reason to brand.

Editing the Title

The most obviously illegal title-washing strategy is physically changing the original title. One way to do this is to scan the document and make digital edits, removing evidence of past accidents or active liens.

State motor agencies typically denote a condition on the title. This is the first thing a scammer changes, altering titles like "Rebuilt Salvage" to something like "Normal wear and tear". Many scammers also alter their personal information, making it more challenging to track them down once the victim catches on.

Is Title Washing Illegal?

Yes, title washing is a type of sales fraud as it intentionally distorts the vehicle's value to favor the seller. Many cases are tried in small claims court, but the crime can be punished at the federal level. The severity of the crime, misdemeanor, or felony, depends on the offender's history, financial losses, and state decisions.

There have been cases in which local, state, and federal agencies worked together to take down titlewashing operations. The most notable example was Operation Title Sweep, which caught a ring that defrauded Americans for millions in damages.

Some dealerships have also been punished for selling washed vehicles. In these cases, individuals sue the dealerships in civil court, typically on the grounds of negligence or fraud.

How Do Authorities Detect a Washed Title?

Title washing is most commonly performed in used car transactions. The trade happens between two people, leaving out government agencies and law enforcement. This means that it is challenging for authorities to discover individual cases.

However, this doesn't mean that washed titles can permanently evade detection. Vehicles are required to undergo state inspections regularly. These checks can find damages that aren't listed on the title, prompting the inspector to report a washed title.

Some cars that change hands or renew titles too often can also alert the Department of Motor Vehicles of suspicious activity. While it is unlikely that large agencies will investigate single cases, they may move if a trend indicating a crime ring is discovered.

How To Tell If a Car Has a Washed Title

The government takes a long time to find a washed title, and getting justice in these cases is often more trouble than it's worth. So, individual buyers must remain vigilant about the signs of a washed title.

Unless the scammer did a poor job altering the document, a washed title cannot be detected by appearance.

The most significant thing you can do is to rely on more than the car's title. A vehicle history report tracks accidents, repairs, mileage, and other significant events and assigns it to a distinct Vehicle Identification Number (VIN).

Buyers should also take the vehicle in for a pre-purchase inspection. Choose a mechanic without the seller's intervention. If the seller is against the inspection, that should send you running for the hills.

A VIN is embedded into the vehicle, making it much more challenging to tamper with and fool a buyer. There are third-party services that can run these checks, so you don't have to rely on the seller to do it and risk further deception. You can find the VIN on most vehicles on the driver's side dashboard or door. Older cars may also have it engraved onto the engine.

Other ways to detect a washed title include:

Noticeable Damage

A title might be clean, but that doesn't mean the car is. Check for visible body damage or inconsistencies in the seller's information. For example, you can see if they are lying about the odometer miles by checking the tread on the tires.

Unrealistic Deals

Scammers often try to play to your excitement about buying a new car. They offer "too good to be true" deals to sell the vehicle with as little resistance and verification as possible.

Not Showing Vehicle History

A title washer is unlikely to show you a vehicle history report. Ask the seller about it and check their reaction. They may dodge questions or provide vague answers about past incidents.

Out-of-State Vehicles

You may be able to find signs that the vehicle was brought in from another state. State university stickers and old license plates can be a dead giveaway.

What States Allow Title Washing?

There are no US states that have explicitly legalized title washing. However, some areas facilitate the crime by not instating state-level legislation or by maintaining weaker branding laws than the norm.

These states have significantly higher thresholds for what constitutes a "totaled vehicle" and earns a branded title. According to CarFax, these states have high ratios of title-washed vehicles based on how many titles each state alters per year.

These leniencies are justified by saying they prevent unnecessary devaluation of a major asset (Vehicles), but they also create loopholes that allow title washers to endanger future drivers.

Anti-Title Washing Legislation and Practices

There's been significant pushback against title washing as more people become victims of the practice. Several of the leading vehicle history report services, such as CarFax and Autocheck, inform people if the vehicle has had a title renewal or change.

Some states, like Texas and Colorado, are facing pressure to alter their requirements for totaled vehicles. These states dictate that a vehicle must sustain enough damage to have a zero-market value to receive a brand.

Additionally, the US Justice Department created the National Motor Vehicle Title Information System. This database of title brands is available on vehiclehistory.gov and allows anyone to check every title associated with a given VIN.

What to Do If You Bought a Title-Washed Car?

Contacting your state's Department of Consumer Affairs is the first step after confirming that you've purchased a title-washed vehicle. These departments can give you options on how to recover damages from the seller. You can also turn to a criminal lawyer for help.

In either case, you'll need to gather evidence of the deception. Documents like the vehicle history report or communications with the seller can prove whether the seller knew about the title-washing or if they are a victim, too.

In some scenarios, you can contact the seller and inform them of the problem. However, this may give them a warning to evade the coming legal proceedings and make things more challenging for you.

Title washing is a deceptive and illegal tactic that poses significant financial and driver safety risks. Vehicle sellers use it to gloss over dangerous physical defects and damage histories that provide vital context on the vehicle's drivability and overall condition.

Consumers can protect themselves by being thorough in the buying process and avoiding snap decisions. VIN checks and subjecting the car to a pre-purchase inspection will eliminate most of the risk of buying a title-washed vehicle.

If you do find yourself in the unfortunate position of owning one of these vehicles, contact your state's consumer authorities for further guidance.