Scrapping a Car: Title REQUIRED
Scrapping a Car: Title REQUIRED
We receive calls from people seeking the option of scrapping a car without having the vehicle’s title. We are not able to buy a car without having the title. A junk car buyer, scrap car buyer or cash for cars buyer is unable to scrap a car for cash without the title due to the law. When looking to sell a car for cash you must have the title. What is a vehicle title? In the US and Canada the certificate of title is the primary document for establishing ownership of a vehicle. How can you sell a car for cash without a title? The answer is that it is legally impossible to do so because without a title, it is impossible to validate ownership and also impossible to transfer ownership. (Even when scrapping a car)
A scrap car buyer that doesn’t require the title is operating illegally according to Ohio law. If a junk car buyer indicates that the title isn’t required, they are breaking the law. Next we take a look at how the laws in Ohio relate to different providers when looking to sell a car for cash:
1. Federal regulations: requires auto recyclers and junk yards to report all scrapped cars on a monthly basis. Those not in compliance are subject to criminal penalties, regardless of whether they are a junk car buyer or cash for cars company.
2. Towing companies: According to http://publicsafety.ohio.gov, the Ohio BMV, “towing companies may purchase motor vehicles. Tow companies may not transfer vehicles to scrap processors or salvage facilities with assigned titles or an Unclaimed Affidavit.”
3. Scrap metal processors: Those working in “acquisition, processing and shipment of ferrous and nonferrous scrap. A scrap metal processor who receives a motor vehicle from the owner on the certificate of title shall mark the certificate “TO BE CANCELED” and forward the certificate to the clerk who issued it within 10 days. Scrap metal processors are prohibited from accepting a motor vehicle with any document other than a certificate of title. The scrap metal processor shall keep the record, including a copy of the canceled title, for three years. If the seller of the motor vehicle is not the titled owner, the record also shall include: the seller’s name and address; an ID number from the seller’s DL number, military I.D. or state-issued license; and a physical description of the seller (O.R.C. 4738.16).”
4. Salvage dealers: “in the business of selling used motor vehicle components (O.R.C. 4738.02). If an Ohio certificate of title or salvage certificate of title is assigned to a salvage dealer, the dealer is not required to obtain an Ohio certificate of title or a salvage certificate of title to the motor vehicle in the dealer’s own name if the dealer dismantles or destroys the motor vehicle; indicates the number of the dealer’s motor vehicle salvage dealer’s license on it; marks “FOR DESTRUCTION” across the face of the title; and surrenders the certificate of title or salvage certificate of title to a clerk (O.R.C. 4505.11).”
To summarize, when scrapping a car with a junk car buyer or scrap car buyer in Ohio you must have either the certificate of title or salvage certificate of title. In order to receive cash for cars, sell a car for cash or scrap a car for cash, you must have one of the two types of titles listed above. We are unable to pay cash for cars with a memorandum title. A memorandum title is essentially used for the purpose of obtaining license plates for the vehicle and does not validate ownership because the lender still owns the vehicle until the loan is paid in full.
