The Expert Podcast

Overview:

• Many car collectors and automotive enthusiasts face the challenge of buying vehicles without titles, often finding them through platforms like Craigslist or barn finds. For years, the Vermont loophole was a popular method for obtaining titles, especially for vehicles missing paperwork.
• This loophole, which was active for almost 20 years, was widely discussed in outlets like Hagerty Insurance, Car and Driver, and Jalopnik.
• Important Update: As of June 2023, Vermont closed this loophole under pressure from various state DMVs, making it no longer a viable option.

What’s the New Alternative?

• While the Vermont loophole is gone, there’s an alternative process that’s been available all along, which is often better, faster, and more affordable.
• The new method is Court-Ordered Titles, where you work directly with the court to obtain legal ownership of the vehicle.
• Why is this process better? Unlike the DMV, the court can make decisions about ownership, which is critical when dealing with missing title paperwork.

How to Get a Court-Ordered Title:

• Documents Needed:
  • Petition for Involuntary Transfer of a Vehicle: Requesting the court to transfer ownership of the vehicle to you based on the evidence you provide.
  • Affidavit of Facts: Explains how you acquired the vehicle and includes details like the year, make, model, and VIN number.
  • Declaration of No Interest: States that you are not aware of anyone else who might have a claim to the vehicle.
  • Title Application: Completed and submitted to the DMV after the court order is granted.
• The Process:
  • This process is usually administrative, meaning it doesn’t require a lengthy court case.
  • The court will review the documents, ensure the vehicle isn’t stolen or under a lien, and confirm everything is legit.
  • Once approved, the court will sign the declaration of ownership, and you can take it to the DMV to receive the title.
• Why This Method Works:
  • The DMV can’t make legal decisions on ownership; only the court can.
  • This method ensures that the title is issued legally, protecting both buyers and sellers.
  • While the DMV only handles documentation, the court has the authority to transfer ownership in cases like these.
• Tips and Resources:
  • If you need help with the process, you can use resources from websites like Cartitles.com for guidance, examples, and even services to prepare the documents for you.
  • This is a DIY-friendly process, but if needed, professionals can assist.
• Be Cautious with Title Assistance Services:
  • If using a third-party service, make sure you understand the process to avoid issues like having your title revoked later on.
  • Ensure that any title service is transparent about how they obtain the title to avoid future complications.
• Conclusion:
  • The Court-Ordered Title process is a reliable and legal method for getting titles for vehicles with missing paperwork.
  • For more details and resources, visit Cartitles.com, where you can find videos, examples, and personalized consultation services.
• Disclaimer:
  • This episode is not legal advice. It’s for informational purposes, and we recommend consulting with a professional if you need assistance with your title process.

Links:

• Cartitles.com [Insert Link Here]
• Additional Resources on Court-Ordered Titles [Insert Link Here]

Stay tuned for more updates on car title topics and legal advice in future episodes!

Car Market Trends (2020-2023):

• Due to a severe shortage of new cars from 2020 to 2023, the availability of used cars has significantly decreased.
• Fewer new cars being sold means fewer used cars entering the marketplace, making it harder to find good deals on used vehicles.

Used Electric Vehicles (EVs) Offer Opportunities:

• According to the New York Times, used EVs have fallen sharply in value, creating potential deals for buyers.
• Higher supply of used EVs is due to many people buying them as secondary vehicles or purchasing more than they actually need.
• Government incentives still exist in many states, offering benefits for purchasing used EVs.
• Example: The climate law introduced a tax credit of up to $4,000 on used EVs.

Price Comparison:

• Used battery-powered vehicles are 28% cheaper than they were a year ago, while regular used cars are only 7% cheaper.
• Used EVs are a more affordable alternative to new ones, which may be out of many buyers’ price ranges due to high costs.

Considerations for the Future:

• There could be future taxes on EVs charged by the mile instead of by the gallon.
• Some states are considering this change to replace the current fuel taxes, which are decreasing due to the rise of EVs.
• While this may affect EV owners in the future, it’s not yet a widespread issue.

Takeaway:

• If you’re in the market for a used car and can’t find a good deal on a gasoline-powered vehicle, consider a used EV as a viable and affordable option.

Overview:

• What happens if a dealership goes out of business?
• Consequences and risks for customers who purchased vehicles from a licensed automotive dealership.
• Dealerships are responsible for providing the title, documents, and legal vehicle transfer, but when they close, problems can arise.

Key Discussion Points:

• The Shift Bankruptcy:
  • Shift, a large online vehicle retailer, recently filed for bankruptcy.
  • They are not alone—other companies like Off Lease Only (Florida) and American Car Center (2023) also closed down.
• Risks for Buyers:
  • If a dealership goes bankrupt before transferring the title, buyers may face title problems.
  • Many dealerships use a "floor plan" or line of credit to finance their inventory. If they can't pay off cars before going bankrupt, customers could face title issues.
• The Impact of Car Trades:
  • If a customer traded in a car with a loan, and the dealership fails to pay off that loan due to bankruptcy, they may still be responsible for payments on both the old and new car, leaving the buyer at risk.

What You Can Do:

• Before Signing a Deal:
  • Always ask to see the title of the vehicle before finalizing your purchase.
  • Verify that the dealership owns the car outright and isn’t still paying off a loan.
• If the Dealership Closes After Purchase:
  • Contact the dealership or DMV immediately to inquire about your title status.
  • Check with the DMV to see if the title has been processed or if there are any issues.
• Seeking Professional Help:
  • Consider consulting a certified title agent for assistance in handling title and lien issues.

Conclusion:

• Dealership bankruptcies and title transfer issues are becoming more common, and the problem could spread further as more dealerships close down in the coming years.

Resources:

• More information on lien releases can be found on our website.
• Consultation with a certified title agent is available for those needing professional advice.

Current Trends in the Used Vehicle Market

• Used car prices are not expected to drop significantly anytime soon.
• Auction prices are holding steady, with some auctions seeing a slight increase.
• There's still a shortage of quality, low-mileage, late-model used vehicles.

Electric Vehicles (EVs) as an Exception

• Used EV prices are falling sharply.
• There's an increase in the supply of used EVs as demand drops.
• In contrast, gasoline vehicles are in short supply and remain in high demand.

Impact of the Recent Auto Industry Strike

• The recent strike has pressured new car manufacturing, affecting used car prices.

Lingering Effects from the COVID-19 Pandemic

• The used car market is still recovering from the production slowdown caused by the COVID-19 pandemic.
• Limited car production during 2020-2022 has led to fewer used vehicles available for purchase.
• Some used cars now have higher mileage due to longer ownership periods.

Looking for a Deal?

• If you're looking for a deal, used EVs might be the best option right now.
• For other used vehicles, expect prices to remain higher than anticipated.

What Are You Seeing in Your Area?

• We'd love to hear your observations on used car prices in your neck of the woods.

Discussion Points:

• Negative Equity Problem
  • Many vehicle owners owe more on their car than it’s worth (negative equity). For example, owing $18,000 on a car worth only $14,000.
  • One solution is to sell the car and cover the difference, but this may not be feasible for many.
• Short Sale as a Solution
  • Similar to housing short sales during the 2008 crisis.
  • Some banks offer vehicle short sale programs, though they may not widely advertise them.
  • Banks often prefer short sales over repossession to save on costs associated with vehicle recovery.
• Steps for a Vehicle Short Sale
  • Vehicle Condition Report: Document the vehicle’s condition accurately.
  • Title History Report: Confirm the current status of the vehicle's title.
  • Market Evaluation Report: Get a market value assessment based on the vehicle’s condition and title history.
  • Requesting a Short Sale: Contact the lienholder with a formal request, potentially securing an estoppel letter to agree on a reduced payoff amount.
  • Find a Buyer: Can be an institutional buyer or retail; retail may bring higher offers but requires more effort.
  • Affidavit of Non-Relation: Ensure the sale is not to a related party.
  • Financial Calculation Sheet: Provide financial details as required by the lender.
  • Lien Release Document: Finalize the process with a lien release after sale.
• Considerations and Cautions
  • Only attempt a short sale with realistic expectations of the car’s market value.
  • Fraudulent practices (such as misrepresenting the vehicle's condition) can lead to rejection of the short sale request.
  • Lenders may deny short sale requests from borrowers with high income or substantial savings.
• Additional Advice:
  • This approach may work 70-80% of the time, based on experience.
  • Be prepared to put in some paperwork time, as this can often be done without legal fees.
  • Alternatives include asking the lender for a loan modification, though requesting a short sale first may increase negotiating leverage.

Disclaimer:

• Not legal advice; this is general information, and each lender’s process may vary.

Conclusion:
A vehicle short sale can be a practical way to relieve financial pressure, free up cash flow, and improve your overall financial health.

Episode Description:

• Many cars are purchased with loans, but sometimes the loan becomes a problem for two reasons:
  • You can no longer afford the payments.
  • The loan balance is higher than the value of the vehicle, creating negative equity.
• Negative equity can hurt your financial health, especially if you owe more than the car is worth.
• If you can’t afford your car payment, eventually, the car could be repossessed. If you have negative equity, it may impact your ability to trade in for a new vehicle and affect your net worth.
• A rising issue:
  • The search term “give car back” has been growing, signaling more people are looking for solutions.
  • In 2023, the average car payment reached $725, and now, payments are soaring to $800-900.
• Auto loan delinquencies are increasing, surpassing pre-COVID levels.

What are your options if you owe more than your car is worth?

• Selling the car: If it’s worth less than the loan, you’ll struggle to sell it for the amount you owe.
• Car Short Sale:
  • You can approach your lender with a proposal to settle the car loan for less than you owe, especially if you’re in a hardship situation.
  • Many banks have short sale departments, but you may need to fill out paperwork and prove that you’re financially struggling.
  • A successful short sale can waive the negative equity (the difference between the car's value and what you owe).
• Why choose a car short sale over repossession?
  • Credit Impact: A short sale may affect your credit less than a voluntary or involuntary repossession.
  • Avoid Additional Fees: Repossession often comes with extra charges for towing, storage, and auction fees, increasing the debt you owe.
  • Lock in Vehicle Value: By negotiating a short sale, you can lock in the vehicle's market value, ensuring you’re not stuck with an unexpected loss at auction.
• Steps for a car short sale:
  • Gather necessary documents: Prove your income and hardship, demonstrate the car’s value, and show that you don’t have significant savings.
  • Work with your lender's short sale department, though some may not publicly advertise this program.
  • Submit a short sale application and documents that demonstrate the car’s condition, its value, and your financial situation.
• Why banks prefer short sales:
  • They save money by not having to track you down for a repossession.
  • You’ll need to return the car in good condition with all necessary items (keys, remotes, manuals), which can save the bank costs (e.g., missing remote controls can cost hundreds).
• Car Short Sale Benefits:
  • Avoid the "snowball effect" of escalating debt and repossession.
  • Retain your belongings (e.g., cameras, phones, or gear) from the car, unlike during repossession.

Takeaway:
Consider a car short sale as a more favorable alternative to repossession if you're facing negative equity. It can protect your credit, reduce your debt, and help you regain control of your finances.

Overview:

• In 2026, new vehicles in the U.S. will be required to have an automotive kill switch, designed to shut off the car if it detects a potential drunk driver.
• The system detects bad driving behaviors like swerving or crossing lanes and triggers the kill switch to stop the car.

Concerns Raised:

• False Triggers: What if you swerve to avoid an obstacle like a deer, strong winds, or bad road conditions? How many swerves until the car shuts off?
• Vulnerability to Crime:
  • Criminals could exploit this technology by cutting in front of a driver multiple times, causing the car to believe the driver is drunk and triggering the shutdown.
  • This could lead to carjackings, robberies, or worse, leaving the driver stranded and vulnerable.
• The potential risk goes beyond accidental incidents—criminals could intentionally manipulate the system to immobilize drivers and control access to their vehicle.

Discussion Point:

• What do you think about this technology? Is the kill switch a safety measure or a new risk?
• Let us know your thoughts in the comments!

Is Leasing Always a Worse Deal Than Buying?

• Common advice often warns against leasing, but let’s explore how leasing compares to financing.
• Using a $50,000 car as an example, we’ll look at the differences in total costs and flexibility.

Financing: What to Expect

• Example calculation with no money down and no sales tax, using an 8.5% interest rate for a 5-year loan.
• Monthly payment: $1,025, totaling $61,500 over 5 years.
• At the end of 5 years, you own the car but may have depreciated value below what you owe.

Leasing: A Different Structure

• A 3-year lease with a “money factor” (similar to an 8% interest rate) results in a monthly payment of just over $1,000.
• At the end of the lease, you don’t own the car, but you have options:
  • Walk away with no further obligation.
  • Pay a residual value of $24,000 to own the car or continue financing it.

Key Benefits of Leasing

• Flexibility at the end of 3 years: walk away or buy if the car’s value exceeds the residual.
• Potential to benefit from rebates or hidden discounts that manufacturers often apply only to leases.
• Manufacturers can offer lower monthly payments on leases without impacting the car’s perceived value.

Why Leasing Could Be a Smart Choice

• Leasing gives you an “out” without negative equity, which can be beneficial if you want to switch cars or your circumstances change.
• Sometimes, total leasing costs may be comparable or even lower than financing, especially with dealer incentives.
• Leasing may allow you to drive a new car every few years without the hassle of resale or depreciation concerns.

Smart Tips Before Committing

• Always compare total lease and financing costs side by side.
• Ensure calculations are based on equal terms: same down payment, same vehicle, and all fees.
• Take time to review the numbers before making a decision—avoid impulsive commitments at the dealership.

Final Thought

• Leasing isn’t inherently “bad”; it’s an option that can provide financial flexibility. Weigh your options carefully, do the math, and choose what works best for you.

In this episode, we dive into some of the most significant developments shaping the future of the automotive industry, including:

• Hyundai to Sell Cars on Amazon (2024)
  • Hyundai is set to start selling vehicles through Amazon in 2024, eliminating traditional dealership costs.
  • This could revolutionize auto retailing, offering lower prices or higher profits for manufacturers.
  • This shift may open up more options for consumers and set the stage for a new wave in vehicle sales, potentially spreading across the industry.
  • Mark your calendars for 2027-2028—this is where the evolution of auto retailing officially begins.
• Tesla Fire Incident
  • A Tesla fell into a lake, and the fire didn't start from the crash but from the battery being immersed in water.
  • The incident raised concerns about the challenges fire departments face when dealing with EV battery fires, which can get worse when water is used.
  • As EVs become more prevalent, these issues, along with higher repair costs, will impact the cost of ownership and insurance premiums.
• Electric Vehicle Repair and Insurance Costs
  • As the number of electric vehicles (EVs) on the road increases, the higher repair costs will lead to increased insurance premiums.
  • Even if you don’t own an EV, your insurance rates could go up to account for potential repairs when involved in accidents with electric vehicles.
• Anti-Speeding Tech in New Cars
  • The federal government is considering anti-speeding technology for new cars, which could potentially control your vehicle’s speed or warn you if you’re speeding.
  • Discussions around "kill switches" have also emerged, raising concerns that your car could be shut off entirely if you're speeding.
  • This technology may radically change how we drive and how vehicle manufacturers approach car safety.

These developments represent major shifts in the automotive world. Whether you’re a car owner, enthusiast, or working in the car business, these changes will impact everyone in the next few years.
We’d love to hear your thoughts on these topics—let us know in the comments!

Introduction: The used EV market is facing major challenges, with electric vehicle prices plummeting by 33% and longer selling times. EVs are growing in popularity year over year, but recent trends in the used market are concerning.

Key Topic Highlights:

• Price Drops: While all used car prices have fallen around 5% (normal depreciation), used electric vehicles have seen a drastic 33% decrease, creating a tough market for sellers.
• Dealer Challenges: Many dealers struggle to sell used EVs, especially in the $30,000 to $35,000 range. As units lose value daily, dealers are feeling the pressure.
• Media & Forecasts: Some media outlets and forecasts may paint a positive picture of EV growth, but there are underlying issues, especially for the used EV sector.

Consumer Behavior: The used EV market suffers partly because buyers of new EVs are typically early adopters, while used car buyers tend to prioritize affordability over innovation or status.

Dealer Strategies:

• "Sell it Twice" Approach: Some dealers attempt to turn used EVs into lease options, selling the vehicle first to an in-house company and then to consumers, to maximize rebates and benefits.
• Floor Plan Costs: When cars sit on dealer lots too long, they incur additional costs known as floor plan expenses, which further cut into dealer profits.

Conclusion: The backup of EVs on dealer lots is creating financial strain. Have an opinion on this topic? Let us know in the comments.