If you're looking for a cheap car, your local police department may be the answer. Police auctions include cars used in crimes and cars that were towed but never redeemed by the owner. If you buy a seized car, you can apply for a title at your state's department of motor vehicles, though the exact procedure differs from one state to the next.
If there were any liens on the car -- claims against the title -- before the police seized it, these liens won't disappear just because you want to get title to the car. Creditors can place judgment liens on vehicles for unpaid debts. The lien stays on the car even after you buy it or otherwise take ownership of it. In Maryland, for example, the Motor Vehicle Administration won't issue you a title without a release from the lien holder. Getting the release may require paying off the lien.
The process of getting titles for seized cars varies by state. In Maryland, for example, you have to show the MVA your bill of sale, the court order that authorized police to seize the vehicle, and any other paperwork you received from the cops. You also have to submit all the usual paperwork, such as proof of insurance and a certificate of inspection. The fees attached also vary by state. Georgia, for instance, requires you to pay a one-time tax based on the value of the car.
