[blucar]

As a general rule most states require that when a vehicle is turned in for scrape/junk, the title is supposed to be turned into the state. Does everyone do this? I don't think so! An honest wrecking yard will not accept vehicles that do not have clear ownership documents. Some "Yards" that sell older vehicles will place these vehicles in an "impound yard", retaining the paperwork in lieu of turning it into the state.
Throughout the years I have purchased several old/vintage vehicles from wrecking yards around the country, getting very old titles/registration and plates with the vehicle.
Private parties that part out vehicles is usually a completely different game, and therein can lay a big problem when a vehicle is purchased from a private party.
Several years ago we purchased a '39 Plymouth conv coupe from a man in Alabama. The car came with a notarized Bill of Sale.. No title, registration or license plates. As it has already been stated in a previous comment to this topic, Alabama did not issue titles on vehicles prior to 1975.
California and most of the western states have issued vehicle titles since sometime in the 1930's, or earlier.
We could not get a clear title/registration for the '39 Plymouth in California for several reasons: The serial number listed on the Bill of Sale did not match the tag riveted to the body, the same was true of the engine number.
Contacting Alabama DMV solved nothing, they would only supply a letter stating that they did not issue titles etc, on vehicles built prior to '75. Trying to contact the seller of the vehicle was fruitless, he had the money, referred us to the notary. The notary only varified the identity of the person that signed the bill of sale.
It took us over two years to get clear ownership of the '39 Plymouth, and that was via an "assigned VIN" by the state of California. The assigned number does not identify the Plym as being a '39 Plym. conv. cpe. In other words it lost it's identity, and possibly a significant amount of it's value..