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Salvaged Vehicles
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- Life After Salvage
- The Scourge of Flood Damage
Page OverviewWhether they're destroyed in an accident, through vandalism, or by a natural disaster such as Hurricane Katrina, vehicles that are too damaged to repair profitably often end up as "salvage" in a scrap yard, cut up for parts, or stripped and shipped overseas as just another ingredient in the manufacture of steel.
Michigan defines a salvage vehicle as a late-model vehicle that will cost more than 75% but less than 91% of its pre-incident value to repair. "Late model" for a vehicle under 8,000 pounds is anything less than six years old. For larger vehicles, it's 16 years. You might also hear a salvage vehicle referred to as a vehicle that's been "totaled."
Top Life as a Salvage
When a car is declared salvage, its registration is retired and its title is replaced with a salvage title. Salvage titles are a different color―orange―than regular vehicle titles. They also list the vehicle's color and nonsalvageable parts. It's almost always the company that insures the vehicle that decides whether to total it and declare it salvage.
In Michigan, once it's salvage, a vehicle can't be operated on public roads. In addition to cars and trucks, motorcycles, trailer coaches, and titled trailers also can be declared salvage.
Licensed auto dealers in Michigan are allowed to buy salvage vehicles and reassign salvage titles, but they must give a written or printed disclosure to the buyer. This document certifies that the dealer informed the buyer the vehicle was previously a distressed vehicle.
Individuals also can buy totaled vehicles, but they must apply for a salvage title before the vehicle can be transported or towed. Owners may apply for an original salvage title at a Secretary of State branch office by completing an Application for Original Michigan Salvage Title (TR-12) form.
Dealers and other businesses can apply for a salvage title either at a branch office or by mail.
Top Life After Salvage
Salvage vehicles can end up back on the road after extensive, occasionally questionable repairs. Sometimes, dealers, shops, or individuals decide a totaled car is worth rebuilding or repairing. Once the work is complete, the car needs to undergo an extensive examination by a specially trained salvage vehicle inspector.
For a $100 fee, the inspector will verify the ownership of the parts used in the rebuild and make certain the vehicle meets Michigan Vehicle Code requirements.
A list of certified salvage vehicle inspectors by geographic region and by county is available online. You can also call the Secretary of State's Program Operations Division at (517) 241-6850 for more information.
If the vehicle passes the inspection, titling it is simply a matter of bringing the salvage title, an Application for Salvage Vehicle Inspection(TR-13A), and an original Salvage Vehicle Recertification form (TR-13B, which is available only to law enforcement officers) to a Secretary of State branch office.
The cost for a rebuilt-salvage title is $15.
Top The Scourge of Flood Damage
In Michigan, vehicles and trailer coaches that have suffered flood damage are in a special category of salvage vehicles. Those titles also are orange, but they are marked to indicate the flood damage.
Salvage vehicles can be an inexpensive alternative to buying full-priced vehicles, but they might carry problems that won't appear for a long time―particularly if the damage came from water.
For vehicles that suffered heavy body damage, postfactory parts might not fit as well, and more serious structural damage might not be apparent. And there are even more serious issues with vehicles that have suffered flood damage.
Saturated fabrics might appear to be problem free, but there could be hidden mold and mildew. The immersion also might accelerate body and structural rust issues that won't be apparent for years. And it's a good bet that the electrical system got fried as soon as someone tried to turn on the ignition.
Related Questions from DMV Answers
How much do inspection stations charge?
Some states standardize vehicle inspection fees; others leave it up to the individual inspection stations. Keep in mind that in addition to regular fees, you might also need to pay for repair costs (if your vehicle fails the inspection and needs repairs) as well as a fee for a re-inspection.Inspections are important in order to make sure each vehicle on the roadways is operating safely and efficiently. If your state requires a vehicle inspection, it’s most likely that’s you’ll need to take care of it before, during, or shortly after you register your vehicle or renew your vehicle’s registration. Make sure you handle the inspection within the appropriate amount of time in order to proceed with these vehicle transactions as well as avoid penalties such as citations and additional fees.The grid below lists how much you can expect to pay.NOTE: Even if the grid notes that your state doesn’t require a vehicle inspection, it doesn’t mean there aren&rsquo...
Read more >>Are vehicle inspection stations open on Saturday?
Days and hours of operation for vehicle inspection stations can vary greatly. Your state might perform vehicle inspections at privately owned inspection stations located throughout the state, in which case you’ll need to contact your closest station and ask about days and hours, or it might perform these inspections at the DMV, in which case times will depend on the DMV’s typical days and hours.In order to register your vehicle or renew your vehicle’s registration, as well as avoid citations, fines, and other penalties, it’s important to handle your auto inspection (and, in some cases, the re-inspection) within the time limits your state mandates.Check your state in the grid below.NOTE: The grid might state that your state doesn’t require vehicle inspections, but keep in mind this grid deals with safety inspections only. Your state might require other kinds of inspections, such as emissions inspections or VIN inspections in certain situations (such as w...
Read more >>What should I consider when purchasing a used car with a salvage title?
The first thing you should do is order a vehicle history report. This report will run the vehicle identification number (or, VIN) through a check and let you know all about the history of the used car. If the owner already told you the vehicle has a salvage title, running a VIN check will give you the complete story and possibly either set your mind at ease or make you realize you’re not willing to take the risk.If the owner didn’t tell you about the salvage title and the vehicle history report is how you found out, you might want to consider looking elsewhere for a used car – even if the VIN check doesn’t present any major problems. Withholding the salvage title status is just bad business.State Laws On Salvage TitlesEven if you’re aware the used car is a salvage that the owner has repaired, and even if a VIN check confirms everything the owner’s told you is true and that there’s nothing in the vehicle’s history that makes you too ner...
Read more >>What if my car fails the vehicle inspection?
The grid below highlights how your state requires you to handle a failed vehicle inspection.Generally, you’ll need to make the necessary repairs and return the vehicle for another inspection. However, some states offer perks such as free re-inspections for returning the vehicle within a certain amount of time and/or to the same auto inspection station. In addition to taking advantage of any freebies your state offers, it’s important to make the repairs and return for a re-inspection in a timely manner in order to handle vehicle registration or registration renewal on time, as well as avoid late fees, citations, and other penalties.NOTE: If the grid states you don’t have to get a vehicle inspection in your state, be sure to double-check with your motor vehicle licensing agency. Some states do require certain kinds of inspections, such VIN inspections before registering out-of-state vehicles, salvage vehicles that have been rebuilt, or custom-built vehicles, or emiss...
Read more >>Where can I locate the motorcycle VIN on my bike?
Are you looking to buy a used motorcycle? If so, you’ll need to locate the motorcycle vehicle identification number (VIN). The VIN number is located in two places on motorcycles, on the engine case and on the frame. Motorcycles from 1970 and later only have a frame tag. Motorcycles made during or after 1981 have a VIN that is made up of 17 characters. Prior to 1981, the motorcycle VIN usually ran 11-17 characters. Modern day VINs consist of 17 characters that do not include the letters I, O, or Q. When buying any used vehicle, especially when buying a used motorcycle, it should be standard procedure to check the history of the vehicle. Previous owners aren’t always forthcoming about a motorcycle’s past. Has it been in an accident? Has it been recalled? Is it stolen or salvaged? VIN numbers are documented in all accident reports, stolen vehicle reports, recall reports, and any records that are available to the public. Or, you could want to provide the VIN number to ...
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