Junkyards can buy cars with no title in some states by following specific legal procedures and using alternative documentation to verify ownership.
Methods junkyards use to purchase vehicles without titles:
State-specific exemptions: Some states allow junk or scrap vehicle sales without a title if the car is below a certain age or value threshold. The junkyard may only need the seller’s ID, registration, and a signed bill of sale.
Bonded title process: In some cases, buyers can obtain a bonded title by purchasing a surety bond that protects against ownership claims. This allows them to legally take ownership of a vehicle without the original title.
Mechanic’s lien: Junkyards that also operate as repair shops can sometimes claim ownership through a mechanic’s lien if a vehicle was abandoned after repairs.
Parts-only purchase: Some scrap yards buy vehicles strictly for parts and metal without transferring the title. The vehicle is dismantled and never resold or registered, which reduces title requirements in certain states.
Waiting period and notification: Junkyards may hold no-title vehicles for a state-mandated period while authorities check for theft reports or ownership claims.
Junkyards that buy without titles typically pay less due to the added risk and processing costs. They also perform VIN checks to ensure the vehicle is not reported stolen. Each state has different laws governing no-title sales, so junkyard policies vary by location. Contact we buy junk cars services in your area to ask about their no-title policies.