How To Get a Salvage Title Cleared
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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.
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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.
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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.
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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).
Frequently Asked Questions
Q: Can I legally “clear” a salvage title?
A: Technically, you can’t “clear” a salvage title in the traditional sense. However, you can follow a process to have the title rebuilt, which involves repairing the vehicle to roadworthy condition and passing a state inspection. The resulting title is often labeled as “rebuilt salvage” or something similar.
Q: Can anyone buy and repair a salvage title vehicle?
A: While regulations vary by state, repairing salvage vehicles is often best left to professionals. Some states only allow qualified businesses to purchase salvage vehicles. The repair process requires extensive knowledge and skills to ensure the vehicle meets safety standards and can pass inspection.
Q: How does a rebuilt title differ from a regular title?
A: A rebuilt title indicates that a vehicle previously had a salvage title but has been repaired and passed a state inspection. While this allows the vehicle to be legally driven on public roads, it will always carry the “rebuilt” designation. This can affect the vehicle’s value and may make it more challenging to insure or sell in the future.
Q: Is it worth buying a salvage or rebuilt title vehicle?
A: It depends on your situation and risk tolerance. While these vehicles can offer significant savings, they also come with increased risks and potential long-term costs. They’re often best suited for automotive professionals or those with extensive car knowledge. For the average car buyer, the potential savings may not outweigh the risks and limitations associated with salvage or rebuilt title vehicles.
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