Titling a Repossessed Vehicle

A repossessed vehicle is a vehicle that was used as collateral to obtain a loan, either to pay for the vehicle or some other commodity, but the registered owner defaulted in satisfying the terms of the loan contract and the lender, or lienholder, has taken possession of the vehicle for the purpose of recovering the loan in whole or in part.

You must provide proof of address when titling a vehicle, unless you already have an established Virginia record with DMV, such as a Virginia driver's license, identification card, or title. If the vehicle is being titled in more than one name, only the first listed owner is required to provide proof of his or her address. A lienholder that is a business does not have to provide proof of address.

Before registering a repossessed vehicle, you must pay sales and use tax.

In State Lienholders

If you are a lienholder and are repossessing a vehicle currently titled in Virginia, you must obtain a repossession (REPO) title in your name after taking possession of the vehicle and prior to reselling it. This requirement, which falls under the privacy protection law, ensures that information about the previous owner is not divulged to an individual who purchases the vehicle from you.

Out-of-State Lienholders

For repossessed vehicles titled out-of-state, the lienholder is not always required by that state to title the vehicle in his name before a subsequent sale may be initiated. If you are a lienholder and are repossessing a vehicle currently titled in another state that you want to resell in Virginia, but you do not hold an out-of-state title in your name for the vehicle, you must apply for a Virginia REPO title first. You, or your authorized agent, must use a Repossession of Vehicle Titled Out-of-State form, VSA 98, to apply for the Virginia REPO title in your name. The current, valid, out-of-state title, as well as all repossession documents required by the originating state, as listed on page 2 of the VSA 98, must accompany the form, unless the vehicle is from another state and the vehicle is not required to be titled by the laws of that other state.

Purchasers of Repossessed Out-of-State Vehicles

If you are a customer who is not a lienholder, and you have purchased a repossessed vehicle that was titled out-of-state, and you are applying for a Virginia title in your name, you do not need to submit the VSA 98 to DMV. However, you do need the appropriate documents as outlined on page 2 of the VSA 98.