The Expert Podcast

so what about salvage rebuilt non repairable type vehicles and even reconstructed vehicles or vehicles and no vin number how does it work. let's take a look at let's see what the DMV has to say let's get right from the horse's mouth don't take anybody's word for don't you know get any kind of urban legends online opinions you know people that think they know what you're talking about even us we think we know we're talking about but let's get it from the horse's mouth. this is an example from the state New Mexico which is very typical of salvage and rebuilt titles in fact they're a little bit more lenient about salvage titles than many states. and this is their section of chapter nine about reconstructed rebuilt salvage and non repairable vehicles. this is a very common subject for viewers because a lot of title problems have to do with the subjects so we're gonna skip over rebuilt homemade shop built vehicles gliders reconstructed we're gonna jump right to salvage non repairable which is section E. and what they tell you on section E for salvaging non repairable is there some recent changes made significant changes in the definition to the procedure. a salvage vehicle is something other than non repairable we'll talk about non repairable in this video. and it's a subject to registration that's been wrecked destroyed or damaged and excluding hail damage. so to the extent that the insurance company has considered it uneconomical to repair the vehicle and subsequently not repaired and it goes to the insurance company. okay total loss payment is made by an insurer whether or not the vehicle is subsequently repaired or not or if the insurer obtained the agreement of that amount. bottom line is that if the insurance company pays out a total loss claim for whatever reason it's a salvage vehicle. we'll skip over non repairable for the moment who determines that a vehicle is salvage or non repairable. by rule the declaration by the insurance company makes it a salvage vehicle. the insurance company decides is it salvage or not. and there's a reason for it because insurance company is on the hook for that vehicle. if they call it salvage now they are protecting the public from buying that vehicle and not knowing because it's in a permanent record. okay non repairable vehicle if they say it's not repairable then that's what it is. because the insurance company said so it's an irrevocable record look it says here regardless of the amount to repair costs versus the market value. so it doesn't matter if the repair cost is five dollars and it's a fifty thousand dollar car if the insurance company says salvage it salvage. if the insurance company says non repairable it's non repairable. now why would an insurance company takes something that has apparently minimal damage and call it non repairable. there's a reason for it we'll get to that momentarily how do you transfer a salvage or non repairable vehicle. here you go it is unlawful for a person to sell or convey a salvage vehicle unless the title is branded. so you can't try to pass it off as a clean title. and you won't be able to anyways because the title records the national database will reflect that. here's the key the owner of a non repairable vehicle shall sell or convey the vehicle only to a license wrecker of vehicles. so if you somehow end up with a non repairable vehicle and some states call it different things some states call it parts only some states call it junk some states call it certificate of destruction Florida specifically some states don't even call it anything they just say it's not a title anymore. said Washington doesn't even give you a title they give you a bill of sale only. if you have one you have to sell it to somebody that dismantles racks or shreds the vehicle or crushes it or sells parts or disposes of vehicles. pretty clear non repairable that's not salvage is not repairable. to permanent designation it makes it ineligible for titling with that vin number. are there anything you can do with it you may be able to let's talk about that. if you have a vehicle that is a non repairable junk parts only you may be able to convert it to at the very top of the list let's take a look a reconstructed rebuilt homemade shop built vehicle. you be able to say I've turned this into a new vehicle put on new parts and I'm requesting a new vin number. a new vin number. New Mexico assigned vin for homemade shop built vehicles. the division will sign a permanent identification number known as a New Mexico assigned number. the owner will be required to have that number machine stamped or dye punched into the vehicle and then return it for an inspection. so what will happen is if you convert it to a homemade shop built vehicle they'll give you a number you have to fix it to the vehicle and then bring it back to make sure you put it on there. do not deface the original vin on the vehicle. if the original vin is already in place in the location have the assigned number inscribed in close proximity to that number. you have to bring it for factory for a final inspection. if the vehicle is built from shop built parts or parts of other vehicles the year in which the vehicles built will determine the year model. the vehicle make will be homemade so it's gonna say homemade on the title. what does that mean if you have a two thousand seventeen Toyota Camry that is a non repairable vehicle and you make it into a homemade shop built vehicle your new title not say Toyota Camry it's gonna stay homemade. ends you're gonna have a lot of hoops to jump through to make sure that the inspector to looks at it is not gonna fail it because they see that it's really that same two thousand seventeen camry. they wanna make sure you've done things to make it a different vehicle. think about like bat mobile or custom vehicle if it's a two thousand seventeen camry with the vin number scraped off it's probably not gonna fly. let's get back to salvage. salvage vehicle how do you transfer a salvage vehicle. well what you have to do is you have to have it branded on the title end you have to have it inspected. inspected meaning that the vehicle will be presented to the DMV after it's repaired to have them look at the car to make sure first safe for the road second that all the damage or issues that made a salvage are repaired. they're gonna make sure the air bags are good the anti lock brakes frames not bent they can make sure all of the suspension is in factory specs with alignment. there's no weak points in the sub frame like if it was bent and then pulled back straight make sure that that crease is not making the car weak. they're also gonna make you show the invoices and receipts for all the parts that you used to repair the vehicle. so if you repaired them and didn't get receipts for the parts you're not going to pass inspection even if the car is good to go as far as condition even in assembled vehicle reconstructed vehicle will have to be signed by the applicant saying that the vehicle is shop built and you have to indicate whether the vehicle was previously titled or registered in another state. you also have to fill out form MV D one oh oh five three saying that the applicant is checked off all the equipment required for that type of vehicle being registered. assembled vehicles must comply with federal standards for highway use this is the owner's responsibility. so if the applicant does not have equipment that's not working they will not process the application. they take this pretty seriously it's not as simple as just putting on a new vin number letting it fly through you have to have vehicle equipment correct you have to have an affirmation of specially constructed vehicles you have to make sure that you're not just trying to pass off a non repairable vehicle as a shop vehicle. if you construct a vehicle from more than one separate source donor cars you might have multiple vins and the first time that vehicle is retitled they're going to have to do a full VIN inspection to make sure that the correct vin numbers used. so to make a long story short salvage and non repairable vehicles have a lot of hoops to jump through again this is just one state New Mexico may seem like a lot but guess what most H. are harder than this New York forget it New York is the hardet of state. so if you're buying salvage vehicles if you're buying that repairable make sure you know what you're getting into before you bid at Copart IAAI and you get proper documents and you know that it's not going to be a simple titling process for putting the car back on the road.