Help me understand auctions and titles please.

[Elkins45]

Reading some of the threads about auction vehicles has led me to discover there’s an IAA public auction lot just a few miles away. I did a little browsing but I find my understanding of how vehicle titles work isn’t sufficient for the task of deciding which listings I might be interested in bidding on.

Most of the listings fall into one of three categories:

Original title
Salvage title
Bill of Sale-KY

Original title I understand, no problem.
Salvage title I sorta understand; it means the vehicle was declared a total loss but then repaired. I’m not sure what legal significance that has.
Bill of Sale I don’t understand at all. All of those listings said “parts only” even if they were described as running and drivable. My assumption is that the auction house doesn’t hold the title on these vehicles or the ownership is in dispute. I don’t understand how they can sell such a vehicle. Wouldn’t this be the perfect way to move stolen cars? Can somebody help me understand the details of the vehicle titling process?

 

[97prizm]

Sometimes unscrupulous people can title swap on junk or stolen vehicles. When I was an emissions Inspector we had a non-English speaking couple come in for an emissions test. They were having titling issues. I speak a little Spanish but had to bring my co-worker in as I'd never seen a street vehicle with a title that had a giant "X" through it with "Ready for crusher " stamped on it.

 

[The_Jeff]

Someone might be able to buy an older vehicle and register it in Maine (15 years old) on the bill of sale.

Or someone might want parts-- a bill of sale is still a legal receipt, and will help them rebuild one good car from two wrecks, one with title, one without. The cops will want to see paperwork for all the parts that go into said clunker.

Or the bill of sale would be a start to getting a bonded title, a mid-sized PITA and large tie-up of capital.

From me to you, I'd skip the auction-- if a professional won't bid on a car, why should you? Better luck responding quickly to ads on facebook marketplace IMO. Unless you're actually an expert on a particular model car that they'll have there.