Salvaged Vehicles

There is a fine line that exists when it comes to wrecked vehicles. On one side, the vehicle's life on the road is deemed kaput and it is sent off to the junk heap to be scrapped or parted out. The other side of the line entails the vehicle undergoing a rebuild and entering the on-ramp for another go-round.

This can be problematic, of course, considering the vehicle was at one time considered totaled. But then the miracle of modern mechanics shines things up a bit and the vehicle is back on the market as good as new―hopefully.

As long as the buyer purchasing the car is completely aware of the vehicle's history and the title is legit under the law pertaining to salvage vehicles, then everybody goes away from the deal happy.

But is does not always work that way. There are instances when you might end up with a vehicle that was salvaged, but the title doesn't say so―and it appears to be just a regular used car with a standard title. So as with any vehicle you intend to buy, make sure to do as much research on its history as possible.

What Is a Salvage Vehicle?

A salvage vehicle is generally defined as a car damaged beyond its fair market value to fix. This is what insurance companies call "totaled." Some vehicles actually look totaled: crushed beyond recognition. Others appear to be OK but have some serious internal or structural issues that would cause a year's salary to rectify.

If you are stuck with this type of vehicle, then you will have to go through quite a few hoops if you yourself intend to make it roadworthy again. However, most of us never even think of this step because we settle with the insurance company and they take the vehicle―along with the title, registration, and plates.

Salvage Vehicle Options

If for some reason the vehicle stays with you and does not go to the insurance company, you have a few options. The insurance company, however, will notify the state within 10 days that the vehicle was judged totaled and that you chose to not accept a settlement. This puts the onus on you to make sure you take the proper measures with the vehicle.

Junk the Vehicle

Most likely if you did not settle with the insurance company, the vehicle was not worth salvaging―or else this would not be a very viable option. Essentially, by junking a vehicle you sign the vehicle over to the county as having no resale value. There is a form you will need to fill out, and in some cases the county will even pick up the vehicle and dispose of it.

The County of Hawaii and the City and County of Honolulu both provide the necessary forms online. You will have to visit a registration office (see locations below) on Maui or Kauai to pick up their county forms.

Sell the Vehicle

You have the option of selling the vehicle to a licensed salvage repair shop or salvage yard. This requires you to first convert the current title to a salvage title. You can do this by going to a registration office with the vehicle registration card, plates, title, and any paperwork that details the vehicle's condition.

Once the salvage title is issued, you can sign it over to an authorized rebuilder. A bill of sale will need to be part of this transaction.

Rebuild the Vehicle

Those who are handy in a garage may see the totaled vehicle as some grand dream or challenge. There is nothing wrong with bringing a salvaged vehicle back from the dead, especially if you are a licensed mechanic with a weekend hobby. You can even resell the vehicle when you are finished. But there are a multitude of measures you must complete before parting ways with the rebuilt vehicle:

1. Before you even begin work on the vehicle, you will need to get a salvage title.
2. Upon completion of the vehicle's repairs, you will need to take it to a specialized county inspector. Call your local registration office to find out exactly where you need to bring the vehicle.
3. Fill out the necessary application for the new title, which with have the words "Rebuilt Vehicle" stamped across the face of the document.
4. Once the title is issued, you have the option of selling the vehicle or registering it as your own.

Office Locations

• City and County of Honolulu

• Hawaii County

• Kauai County

• Maui County