How to Clear Salvage Title in California?

You have completed your rebuild project but can't drive your car yet as it's still a "Salvaged" or "Totalled" vehicle and holds a Salvage Certificate. A salvage certificate is issued when a vehicle sustains damage to the extent that it's considered a total loss by the insurance company. In most states, including California, it's illegal to operate a salvage car on public roads. However, if you successfully restore and repair the damaged vehicle, you can apply for a rebuilt title. This transition allows the vehicle to become eligible for insurance, and you'll be able to properly register, drive, and even sell it.

 

Once again, what is the difference between a salvage title and a rebuilt title? A salvage title refers to a vehicle that was once declared a total loss by an insurance company. Conversely, a rebuilt title signifies that the owner has undertaken the necessary repairs to make the vehicle roadworthy again. However, it still bears a record of its past major issues. When you purchase a used car with a rebuilt title, it's typically ready for immediate registration, insurance, and use, causing much less hassle. This convenience is usually not the case with a salvage title.

 

So, is a rebuilt title as good as a clean title? Obviously not. It still keeps a salvage record on the car's history, which affects its market value, from which you as a buyer can benefit greatly. You may expect a 20% to 25% discount when comparing it to the same year/make/model with a clean title. So, if you do everything right, opting for a vehicle with a rebuilt title comes with significant advantages.

 

How can you differentiate between a clean and a rebuilt title? Normally, any branded title comes with a mark in the right upper corner of the vehicle title, as depicted below.

 

Now that we know the difference between salvage and rebuilt titles, let's convert your salvage certificate into a rebuilt title. The process for obtaining a rebuilt title in California is relatively straightforward and can be completed in one day in just five easy steps.

 

• Step 1. Collect all receipts and bills related to the rebuild project. Make sure to include all costs, including labor costs, even if you performed the work yourself.

• Step 2. Fill out an "Application for Title or Registration" form (REG 343). You can download this form from the California DMV website or pick one up in person at a DMV office.

• Step 3. Bring the completed form and your branded ("Salvage") title (if the car was purchased at an auction or a broker outside of California) or a "Bill of Sale" (if the car was purchased at a California auction through a California auto broker company) to your local DMV office. You do not need to bring your rebuilt vehicle to the DMV at this time.

• Step 4. Pay any outstanding fees and taxes that have not already been paid at the time of purchase. You can pay with cash or credit card, but be aware that credit card payments will incur additional processing fees of 1.5-2% on average. Once all fees have been paid, the DMV will give you a temporary permit that allows you to legally drive your vehicle to the nearest shop for a smog and lights inspection.

• Step 5. After passing the smog and lights inspection, return to the DMV office with your vehicle for a final DMV/CHP vehicle inspection. If everything is in order, you will be issued new plates for your rebuilt vehicle*.

 

Note that in rare cases, a DMV officer may refer you to the California Highway Patrol (CHP) office for additional inspection. Read about tips which help You to decrease the risk of getting into CHP inspection.

 

Feb, 2023

SF Auto Labs.