National System to Track Lemons is Available, but California Is Not Part of It
In California and other states, the titles to repurchased lemon vehicles are branded "lemon buyback" and the titles to severly wrecked cars are branded "salvage" or words to that effect. A major problem is the ability of car wholesalers and others to buy such vehicles and then obtain clean titles in other states, a practice known as title-washing. Of course, the consumers who buy such vehicles are the victims of this practice.
A solution to this problem would be nationwide implementation of the National Motor Vehicle Title Information System, which allows users to instantly check titles on all vehicles in states participating in the system. Using this system, the problem of lemon laundering and title-washing would disappear saving consumers millions of dollars. The System was authorized by Congress in 1992 as part of the Anti Car Theft Act.
The catch is that only nine states, not including California, have joined the system. Another problem is that, so far, consumers do not have access to the system.
Chris Jensen reports in the August 25, 2007, edition of the New York Times that only $11 million would be required to implement the system nationwide. Congress so far has failed to appropriate the money. Why has not Congress taken this step? It cannot be the small amount of money involved so some influential groups must be against implementing the system. Let's take a wild guess--insurance companies and rental car companies that like to resell wrecked cars? Car dealers?
