what is an orange title in michigan

3 min read 25-12-2024

An "orange title" in Michigan isn't an official designation used by the state's Secretary of State. The term is often used informally to refer to a vehicle title that indicates some sort of problem or issue with the vehicle's history or ownership. These problems typically need to be resolved before the title can be transferred to a new owner. Let's explore the common scenarios that might lead to a title being referred to as "orange," remembering this isn't a formal title type.

Understanding Michigan Vehicle Titles: The Basics

Before diving into the complexities of "orange titles," let's establish a foundational understanding of Michigan vehicle titles. A Michigan vehicle title is a legal document proving ownership of a vehicle. It contains crucial information such as the vehicle identification number (VIN), make, model, year, and the current owner's name and address. A clean title is free from any significant issues.

What Makes a Title Considered "Orange"? Potential Problems

The term "orange title" typically arises when a title reflects one or more of the following issues:

1. Salvage or Rebuilt Titles

This is perhaps the most common reason for a title to be informally labeled "orange." A salvage title means the vehicle was declared a total loss by an insurance company due to damage. A rebuilt title signifies that the vehicle has undergone repairs after being declared a total loss. These titles often raise concerns about the vehicle's safety and structural integrity. You'll find this explicitly indicated on the title itself, not via a color.

2. Lienholders

If a loan is still outstanding on the vehicle, the lender will be listed as a lienholder on the title. While not technically an "orange title," the presence of a lien can complicate the transfer process and is often associated with the informal term. The title isn't "orange," but the situation creates complications akin to an issue a person might colloquially label as such.

3. Missing Information or Discrepancies

Errors or missing information on the title, such as an incorrect VIN or owner's name, can lead to delays and complications in transferring ownership. These titles, while not orange, cause similar difficulties. The Michigan Secretary of State will need to correct these issues before a sale can be finalized.

4. Stolen Vehicles

A vehicle that has been reported stolen will have a title reflecting that status. Obviously, such a title would not be transferable until the theft is fully resolved.

How to Verify a Michigan Vehicle Title

To avoid potential problems, always verify the title's legitimacy before purchasing a used vehicle in Michigan. You can do this by:

Checking the title's VIN against the vehicle's VIN: Ensure they match perfectly.
Using a VIN decoder: Several online services decode VINs to reveal the vehicle's history and any reported issues.
Contacting the Michigan Secretary of State: They can verify the title's authenticity and identify any outstanding liens or problems.
Obtaining a vehicle history report: A vehicle history report from a reputable company like Carfax or AutoCheck provides detailed information about a vehicle's past, including accidents and title issues.

Important Considerations

It's critical to remember that the term "orange title" is informal. The official titles from the Michigan Secretary of State don't use colors to denote problems. Always review the title thoroughly and conduct your due diligence before purchasing any used vehicle.

Buying a vehicle with a title that reflects any of the issues discussed above carries risks. While you might save money, you also risk significant future expenses related to repairs or legal challenges. Proceed with caution and seek professional advice if necessary.

This article provides general information and does not constitute legal advice. Consult with a legal professional for specific guidance regarding Michigan vehicle titles and related issues.