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Titling and registering niche RV, marine, and powersports vehicles come with costly challenges and risks, usually uncovered after the deal has closed. Dealerships are often helpless to the causes behind title and registration costs, but you don’t have to be!
Let’s take a look at the common frustrations associated with title and registration and what your dealership can do to minimize losses along the way.
Cost #1: Inconsistent State Regulations
State-to-state requirements for specialty vehicles vary, making a standard manual process for titling and registering out-of-state vehicles nearly impossible — without errors, anyway. Depending on the type of vehicle, even the same state may require different documents, charge separate fees, or take longer to issue titles or plates.
How to Standardize Compliance Checks
If you’re stuck with manual processes, the best you can do is learn what the customer is looking to buy and where they’re from. Between sales and F&I, confirming the requirements of each state or municipality is a vital step before letting the customer head off with their new vehicle.
Some titling and registration services can save you this time-consuming and risky manual process. If you’re in the market, look for one built to handle both in-state and out-of-state transactions, as more consumers are willing to travel farther for the best deals and vehicles.
Cost #2: Delayed Processing
Title processing delays — whether due to DMV backlogs, paperwork errors, or loan complications — are costly challenges impacting the registration process. When customers are unable to title and register their vehicle quickly, it has a ripple effect on your finances. Processing delays may affect the time it takes lenders to fund the deal, and some customers may decide to back out altogether. The potential cashflow risks associated with these delays can put your entire business at risk.
How to Minimize Processing Delays
While you can’t fix DMV backlogs, you can take steps to ensure all paperwork is completed and up-to-date fees are paid correctly with minimal administrative steps. Filling out forms through an automated platform provides more accurate forms with auto-populated vehicle and buyer information, so all fields are completed to avoid filing issues.
Cost #3: Complicated Trades
Many specialty vehicle sales conversations also factor in trade-ins or lien payoffs. Valuing trades can be complicated, considering the documentation needed to ensure the trade or pre-existing loan is handled accurately. Any mistakes in this process can leave your dealership on the hook for unexpected fees long after the deal is done.
How to Practice Due Diligence
Verifying a title for trade can be a risky and manual venture, but it’s necessary to understand vehicle history and validate the trade at the point of sale. Use the issuing state’s DMV website to confirm title status and other information. You can also refer to the National Motor Vehicle Title Information System (NMVTIS) to verify information on the title. Using a title tool that checks these sources automatically can help protect your dealership and ensure you have the most accurate information to value and process a trade.
Cost #4: Prevalent Fraud
Identity and vehicle fraud have become more prevalent as criminals use new technology to create and tweak documentation. Title washing is a prime example — and the consequences of incomplete or inaccurate vehicle history can cost you thousands of dollars during reconditioning or resale.
How to Stay Vigilant
The inconsistency of specialty vehicle titling and registration nationwide can open your dealership to risk if you aren’t prepared to handle fraud attempts. During every deal, inspect the title for watermarks and clear text formatting to search for any falsified information. Confirm customer identities and trade-in titles against NMVTIS and other databases to ensure any buyers and vehicles are clear of criminal associations.
Titling and registering specialty vehicles are complicated processes without much oversight. However, standard and automated processes can help you complete and submit paperwork to streamline the process while safeguarding your dealership. Take the necessary precautions today to protect your business from the costs associated with manual vehicle title and registration.