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Salvage Title

I heard that it's possible to get a clean title to a salvaged car by taking it 
to another state, registering it there (and getting a new title), and bringing 
it back and getting a third title in the original state.

Supposedly, unscrupulous used car dealers could and did do this.  B.S.?

I would imagine the DMV/MVD (as it's called here) would have the VIN in their 
permanent record to prevent such a thing.