How to Clear a Salvage Title
When a vehicle sustains so much damage that the cost of repair equals more than the car's fair market value (a state that insurance companies commonly call “totaled”), it often holds a salvage title. When you clear a car's salvage title, the vehicle usually takes on the new title of “rebuilt salvage.” Salvage title regulations vary by state, so check with your local Department of Motor Vehicles for the particulars.
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Things You'll Need
- Restored vehicle with salvage title
- Before and after photos
- Proof of sales tax paid or purchase price
- Bills of sale for new parts
- Work orders
- Vehicle registration and title application form
- Damage disclosure statement
- Application for salvage vehicle examination
- DMV fees
Instructions
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Restore the vehicle to a fully operational, street legal state. In some cases, this may take many thousands of dollars and hundreds of man hours, especially if you're dealing with frame damage or twisted alignment. In other cases, cars receive a salvage title for simple cosmetic damage with a repair price that outweighs the book value, such as excessive hail damage.
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Take detailed before and after photos of your restored vehicle. Some states require clear color photos of all the car's angles.
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Gather the necessary documents for your trip to the local DMV. You'll need the current salvage title and proof of sales tax paid or proof of the purchase price to get a new title. Some states require the bills of sale from each component purchased for the restoration process. For used major components, such as engines and transmissions, you'll need the VIN of the vehicle they originally belonged to. You must provide work orders for any restoration performed by a mechanic.
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Obtain and complete a vehicle registration and title application form, a damage disclosure statement and a application for salvage vehicle examination. File these forms with the DMV and schedule and appointment for have your vehicle inspected.
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Pay all fees required by your DMV. Usually, this entails a filing fee and an inspection fee.
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Pass a safety and emissions inspection on the appointed date. Upon examination, the state inspector will also check your vehicle for stolen parts. If your car passes and your fees are paid up, the DMV will issue you a rebuilt salvage title, clearing the previous salvage title. You must surrender the salvage title to complete this process.
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Tips & Warnings
Do research online. To get accurate information make sure you find out the laws in your state.
References
Resources
- Photo Credit Jupiterimages/Photos.com/Getty Images
