Junking a Car Owned by a Business in Washington

WAC 308-56A-270 sets the format. A business signature has three parts.

If someone outside the company signs under a power of attorney, the Department of Licensing’s (DOL’s) format is “Business Inc. by Jane C. Doe, POA”. See power of attorney for the limits.

If the signature will be on an affidavit and not on the title, WAC 308-56A-265 says it must be notarized or certified. Do that before pickup day.

The rule says “authorized” but the sources we read do not list who that is for each kind of business. Your own records should answer it. Look for:

• Your operating agreement, bylaws or partnership agreement.
• A written resolution or a short note from the owners that names the signer and the vehicle.
• Your filings with the Secretary of State, which may show who runs the company.

If you are unsure, ask a vehicle licensing office what it will want to see. A short written authorization from the owners is easy to prepare and helps if anyone later asks why the vehicle was sold.

Read the owner line on the title carefully. Small mismatches are easier to fix now than on pickup day.

• Title, or a substitute. If it is lost, see how to replace a lost title.
• Odometer statement. Under RCW 46.12.665, GVW over 16,000 lb and model year 2010 or older are exempt today. Otherwise, expect to complete one.
• Plates. DOL says sellers are legally obligated to remove them. This also matters for a fleet, since tickets and tolls can follow a plate.
• Report of Sale. Due within five business days under RCW 46.12.650. Use the company as the owner. Our Report of Sale guide covers the steps.
• Your records. Keep a copy of the title, Report of Sale and any payment record. Ask your accountant how to record the sale. The IRS rule that losses on personal-use property are not deductible speaks to personal property, so do not apply it to business assets without asking.
• Your data. If the vehicle has a tracker, a toll pass or stored accounts, deal with those first. See erasing data.

We pick up from business lots, as well as streets, driveways and garages. A couple of things help the day go well:

• Tell us where it is parked and what is in the way. A photo helps, and the pickup form takes up to 3 photos.
• If it sits on a lot you lease, make sure your landlord is fine with a tow truck there. RCW 46.79.070 makes removing a vehicle without the property owner’s written permission and department-approved documentation a ground for fining a licensee.
• Have the person with authority present, or send someone with the signed title and a note. We recommend the seller be present, to hand over paperwork and get paid.
• Decide who receives the cash, and record it as you would other company money.

For larger or heavier vehicles, see junk truck removal and junk vans and SUVs. If you have several vehicles, see selling more than one, and call first so we can talk through the company title.

A company title is not in your personal name, so call first. Call us at (206) 941-0612 and tell us what you have, and we will tell you whether we can take it. Have the business name, the signer’s name and role, the vehicle details, and any lien information. If we can take it, offers depend on year and model, condition, demand for parts, weight and size, and towing distance. Our how it works page covers the rest.