The Expert Podcast

If you're buying a vehicle or purchasing a vehicle from anybody other than a new car franchise dealer, do not accept an MSO or Manufacturer Statement of Origin. An MSO is kind of like a title, but it's not really a title. It’s exactly what the words mean: Manufacturer’s Statement of Origin. It’s the manufacturer (like Ford, Honda, or Toyota) stating that they’re the origin of the vehicle. That’s all it is. On that document, it gives the name of the dealership that received the vehicle from the factory. Once that vehicle is sold, the dealership is supposed to sign the back and then turn it into the government to have the first title issued to the owner who bought the vehicle from the dealership.

What’s happening is that some people are making fake MSOs because they’re harder to trace. If you have a title, you can put the VIN number into Carfax, NVTIS, the insurance industry database, NCC, or the DMV, and they can verify if it’s a valid VIN, a valid title, and who the owner is. An MSO, however, is not a title. It’s never been titled yet, so there won’t be any records. It may look like a title, but it’s not. If you’re buying a car off the street from an individual, and they try to give you an MSO, that could be a fake document because there’s no way to know if that vehicle is legitimate. Many people are getting scammed out of large sums of money because an MSO is typically associated with a newer vehicle.

When you buy a vehicle from a licensed franchise dealer, they’re not supposed to hand out the MSO to the buyer. They’re supposed to sign it and turn it into the DMV so the DMV can issue a title for that buyer. If someone has an MSO, something went wrong. That’s not how it’s supposed to work. Maybe they said, “Hey, I’m moving to another state, so give me the MSO, and I’ll handle it.” Even in such cases, the dealership is not supposed to do that, but it occasionally happens. However, it could also mean that no sales tax was paid or other necessary steps were skipped.

If you get an MSO signed over to “Joe Smith” and Joe Smith tries to sell you the car with that MSO, you can’t do anything with it. That paperwork is worthless because it’s not in your name. He can’t sign it over to you because he’s listed as the assignee on the MSO. Be very cautious of MSOs or Manufacturer Statements of Origin. Some manufacturers call it a Certificate of Origin (CO). Either way, unless it says "Certificate of Title" and you can verify it with your DMV, these documents are highly suspicious.

For instance, there was an article from a Pacific Northwest newspaper (either Washington State or Oregon) about a couple who lost $45,000. They paid for a vehicle in cash with an MSO that turned out to be completely fake. The VIN numbers were all fake, and the car itself wasn’t stolen, but it was a new car someone bought from a dealership, got a loan on it, switched all the numbers around, and then resold it. You can’t get a title for such a vehicle because it has a lien, and it’s riddled with red flags.

Even if you have a legitimate MSO, it’s still going to be very difficult to get a title. For example, if someone bought a car five years ago but never titled it, you might find it easier to pursue a court-ordered title or bonded title instead of trying to deal with the MSO. Avoid buying cars with MSOs altogether. If you need more information on what to do if you have one or how to avoid getting scammed, click the link below. We have all the details, plus we offer consulting services.

You can now schedule live, one-on-one video calls with me or a title agent to discuss your situation and figure out the best way to get a title. Thanks to all our viewers! The year 2025 is shaping up to be a great one for vehicle owners because titling is expected to get much easier over the next 12 months.

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