How To Get a Salvage Title Cleared
Source: Pixabay
Following a significant accident or other damage (like a fire or flood), a car may not be repairable to its original condition. In these situations, the insurance company will declare the affected vehicle a total loss. In other words, it would cost more to fix the car than it’s worth. When this happens, that car’s title gets branded as salvaged. So, that leads to a natural question, “How to get a salvage title cleared?”
The simple answer is you can’t, at least not legally. But, some steps can be taken to “rebuild” the title. Before we get into the details, this is a good time to review title washing or laundering. This is the action where a car’s salvage title status gets removed.
What to Know about Salvage Titles
As we mentioned, it’s a violation of federal law and the law in numerous states. And some states make this easier than others. A new title is issued without the salvage title label by retitling a vehicle (with a branded title) in certain other jurisdictions. Services like CARFAX and AutoCheck make this more complicated but not impossible.
We’ll skip the full story on title washing and get back to legitimate ways to work with a vehicle with a salvaged title. Keep in mind that these are general guidelines; each state has its own requirements for dealing with imperfect titles. For example, some states categorize stolen cars as salvaged. And lastly, we’ll be dealing with salvaged vehicles that aren’t roadworthy.
NOT JUST FOR CAR SHOPPING
The CoPilot app isn’t just for buying a car - our new CoPilot for Owning tool will help you keep track of recalls and gives you advice on which scheduled maintenance tasks are most important.
Part 1/Acquire the Title: How To Get a Salvage Title Cleared
The title clearing journey starts with acquiring the damaged vehicle and transferring the title to your name. Keep in mind that some states only allow qualified businesses to purchase salvaged cars.
Part 2/Repair the Vehicle: How To Get a Salvage Title Cleared
The next step involves repairing the salvaged vehicle back to roadworthy condition. This isn’t a weekend project but something that must be performed by a professional mechanic or technician. All work should be documented and records kept for all parts and services purchased to restore the car. It’s also good to photograph and video the job done on repairs that may not be visible once the repairs are finished. Why? The work will need to be inspected.
Part 3/Pass Inspection: How To Get a Salvage Title Cleared
Once all the restoration work is complete (and this means all systems should be brought to factory specifications), it’s time to work on rebuilding the car’s title. Specific states may vary the process, but you’ll generally start at the DMV. Fill out the required forms, provide the requested information (receipts, photos, etc.), and pay the inspection fee.
Once the inspection is scheduled, tow the car to the appointment and hope for the best. Assuming the vehicle passes muster, you’ll be issued a rebuilt title which may be labeled as “rebuilt salvage” or similar terminology.
HOW MUCH DOES IT COST TO TINT CAR WINDOWS?
Different tints block different levels of UV light and in the long run can prevent sun damage to your skin and eyes, but how much does it cost to tint car windows? We’ve got the answer.
Pro and Cons of a Car with a Salvaged Title
Advantages
Money is the number one reason people are attracted to a salvaged title vehicle. An opportunity to turn a profit, or drive an expensive car on the cheap, can be very appealing. Automotive professionals also look at such cars as a chance to separate things into parts, with no thought of repair or restoration.
Disadvantages
Dealing with salvaged vehicles is all about risk versus reward. There’s a great deal of uncertainty about buying a wrecked car with the hopes of repairing it and rebuilding the title. One unexpected problem (like discovering hidden damage to a critical component) can make a project financially unsound. And, repairs have to be made to a high standard to ensure the car can pass inspection.
Buying A Salvage Title Vehicle
The purchase of a salvage title vehicle is best left to professionals. This is someone who:
- Has experience in restoring such cars and rebuilding titles
- Will resell the vehicle to another professional to repair and return to roadworthy condition
- Plans on stripping the car to sell for parts and selling the remainder as scrap
It’s essential to understand that buying a salvaged car is strictly an all-cash affair. Banks won’t lend money for these transactions. So, be prepared to write a large check if you think you’ve found the wrecked Porsche of your dreams. In addition, insurance companies won’t cover salvage title vehicles.
THE 10 MOST RELIABLE USED SEDANS
If you’re ready to start shopping for a used car and reliability is a priority for you, take a look at our list of the top 10 most reliable used sedans on the market today.
What About Buying a Car with a Rebuilt Title?
An online car search may reveal an eye-popping bargain. Dive into the details, and often you’ll find out why; the vehicle was restored and now has a rebuilt title. Is this worth it? The best advice is to tread carefully before dipping your toe in this water. There are numerous considerations.
- What caused the vehicle to be salvaged in the first place? You’ll want to thoroughly investigate the extent of the original problem. Water damage, for example, may not affect sensitive electronic systems for months or even years down the road. And a severe collision may result in hidden damage that never got worked on.
- What repair work was performed? A car with a rebuilt title should be accompanied by a detailed record of all repair work.
- Who did the repair work? A restored car is only as good as the people who brought it back to life. If possible, look at online reviews and even talk with the mechanic about the project.
- Get the car inspected. With repair records in hand, have the vehicle thoroughly checked out by a qualified mechanic. Ideally, this person knows what to look for in a restored car and can use the repair records as a cross-reference.
- Confirm the title status. Verify that the car has passed the state inspection and has received a rebuilt title. Otherwise, just walk away.
- Check with your insurance company and the bank. Assuming the DMV has given the car a thumbs up with a rebuilt title, confirm that your insurance company will cover such a vehicle. Similarly, check with your bank or another lender if financing will be required (some lenders won’t touch rebuilt title cars with a ten-foot pole).
Get a Curated List of the Best Used Cars Near You
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. Only see cars five years or newer with low mileage — CoPilot Compare is the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices — just the most info on the best cars. Check out our About Us page to see how CoPilot works.
