How To Remove a Salvage Title From Your Car

Salvage title is put on vehicles deemed too costly to repair by the insurance company as compared to the actual value of the car.

The percentage threshold and criteria for determining when salvage title is issued varies by state. Typically, cars that have been totaled in an accident, natural calamity or recovered in a bad condition after being stolen are given a salvage title.

How to remove salvage car title?

Once a vehicle or bike is branded as salvaged, you can change it to ‘rebuilt’, ‘assembled’, or ‘reconditioned’. However, this will require that you repair the vehicle from a certified mechanic and submit it to the local DMV office for inspection.

Inspection and re-branding can only be completed in the state where you purchased the salvage car.

You may have to obtain the re-branded title from the state where the car was purchased before you can register it in your home state. However, rules vary as per the state and you need to check with your local DMV.

Here is a brief summary of steps involved in removing a salvage title.

1. Purchase a Salvage Car

Most states don’t allow everyone to purchase a salvaged car. Only licensed rebuilders are allowed in some states to purchase or own a salvage car title. If that is the case in your state, you will be able to own the vehicle only when it has been repaired, inspected by DMV, and effectively re-branded.

2. Repair the Salvage Car

Once you get the vehicle, you need to repair it to pass inspection. Make sure you know what you are doing or have a certified mechanic do it for you. Hold on to all the paperwork and do not forget to take a lot of pictures during the repair process.

3. Apply for Inspection

Depending on your state rules, you will have to fill out the necessary forms to have the car inspected. This is where the vehicle paperwork and photos taken during the repair process will come in useful.

Most likely, the DMV will require you to submit the salvage title, bill of sale, photos, and all other documentations as part of the process.

Once you have completed the paperwork, schedule an inspection for the earliest convenient date. You will be required to pay an inspection fee at the DMV. Once the inspection is complete, the inspector shall paste a decal on the vehicle certifying it to have passed the inspection.

4. Re-braded Title Paperwork

Your work does not end at having the vehicle clear inspection. You still need to apply for the re-branded title paperwork. This will require more forms and an additional fee.

Once this has been done, you will receive the new title with a statement branded on its face indicating the vehicle to be rebuilt.

Don’t become a Launderer

It is important to understand that concealing a car’s history is a serious crime called title laundering, if not done in a legal way. Auto licensing requirements are different in every state and you must make sure to check the unique titling rules and registration requirements of your state. Read more articles on help with finance.