Title Washing
Illegally moving a branded title vehicle through a state with lax titling rules to "wash" the brand off. Federal fraud.
Title washing is the illegal practice of moving a vehicle with a branded title (salvage, flood, lemon, buyback) through a state with weaker title-branding rules to obtain a clean title. Common laundering states historically: Alabama, Georgia, Tennessee, parts of the Carolinas — though all 50 states now participate in NMVTIS (National Motor Vehicle Title Information System), which tracks brands across state lines. A NMVTIS report ($3-$10 from approved providers like VinAudit, ClearVin) catches almost all title-washed vehicles even when Carfax misses it. If a used-car deal looks suspiciously cheap or the title shows multiple state transfers in a short window, pull a NMVTIS report before signing. Buying a title-washed car is legal for the unwitting buyer but kills resale value when discovered.