Salvage title question?

[1BAD68]

Is it possible for a vehicle to have a "salvage' title due to a mechanics lien?
More precisely... a vehicle is repaired at a repair shop and the owner doesn't pay for repair so the repair shop puts a lien on it. Eventually the owner abandons the vehicle.
After awhile can the repair shop get a title for it and will it be a "salvage title" ?

[moparstuart]

Is it possible for a vehicle to have a "salvage' title due to a mechanics lien?
More precisely... a vehicle is repaired at a repair shop and the owner doesn't pay for repair so the repair shop puts a lien on it. Eventually the owner abandons the vehicle.
After awhile can the repair shop get a title for it and will it be a "salvage title" ?

It may in some states , but in missouri it doesnt .  

[Indygenerallee]

I have never seen one and I did alot of mechanic liens when I owned my towing business.

[kab69440]

In Ohio a Mechanic's Lein can be used to get a new title so the car can be sold to cover the repair charges. A salvage title is only for totaled or junk vehicles.

[Indygenerallee]

I have seen several very driveable cars that had minor fender bender "Totalled" out as well, just depends on the mileage, year and overall condition play a big part.... That's what they told us when I took insurance adjusters classes.

[1BAD68]

so what I was told... "A salvage title was issued because the owner abandoned the car" is bogus?

[stripedelete]

so what I was told... "A salvage title was issued because the owner abandoned the car" is bogus?

Correct.   

[1BAD68]

Thank you 

[myk]

so what I was told... "A salvage title was issued because the owner abandoned the car" is bogus?

Correct.  

Wait, so the only reason a car would have a salvaged title is because it was junked-as in physically damaged beyond reasonable standard?

[adauto]

I can only speak as a Wis dealer .... NO! Mechanics lien has nothing to do with salvage tiltle, previous damage does!

[red69superbee]

you can get an abandoned car title on a car like that. Ya have to send the last owner a certified letter and a form which gives them a month to do anything about getting the car back, then if it has damage the patrol will issue paperwork to get a salvage title, if nothing is wrong with it, you can get an original title, they have to inspect it in their station either way.Thats in missouri that the inspecter told me this on the phone

[myk]

There have to be other exceptions or circumstances that can arise that would render a car a "salvage."  

Is it possible that a car can be stolen, declared a loss and then recovered, resold with little or no damage?  How about abandoned after a loan goes under and then recovered, resold?  It's also to my understanding that states have different laws regarding the registration of vehicles?

[Brock Lee]

I hate to use Wikipedia, but it appears very correct here.

http://en.wikipedia.org/wiki/Salvage_title

In North America, a salvage title is a form of vehicle title branding, which notes that the vehicle has been severely damaged and/or deemed a total loss by an insurance company that paid a claim on it. The criteria for determining when a salvage title is issued differ considerably by state. In a minority of states, regulations require a salvage title for stolen vehicles;[1] but, in others, it is issued only for losses due to damage. Under some circumstances, a salvage title denotation may be removed or replaced with a Rebuilt Salvage designation;[2] and cars imported to, or exported from, the United States may be issued a clean title regardless of history.

Because a salvage title can be issued to a vehicle with easily repairable problems or no damage whatsoever, the low cost of the salvaged motorcycle or car is appealing to some hobbyists and investors. Experts recommend caution when purchasing a salvaged vehicle, because there may be hidden damage,[3] which, if unrepairable, may render the vehicle a "pile of parts."[4]
etermination of salvage status

In general, a vehicle is deemed "salvage" when the insurer determines that the repair or replacement cost is in excess of approximately 75% of its market value at the time of the accident or theft.[1][5] Thresholds range between 50% and 95% of the vehicle's value, while "total loss states" leave the specifics to the insurer. In the state of Michigan, the issuance of a salvage title does not mean that the vehicle is also deemed a total loss.[5] Michigan issues a salvage title when the damage equals 75-90% of the pre-damage value; if the loss is 91% or greater the vehicle is eligible only for a "scrap" title, which cannot be subsequently upgraded by any means.[6]

Upon paying the claim, the insurer may offer to return the vehicle to the owner as an insurance buy-back, in which case the owner is responsible for having the repairs made and having the car inspected by a State-designated facility. Depending on the state, this inspection may remove the salvage brand from the vehicle's title.[7] The exact percentage of value that triggers the decision to total the vehicle is guided by applicable laws and regulations. The damage estimate is calculated at retail repair rates, which may be more than the cost of wholesale repair. Vehicles that are not bought back are auctioned as salvage to an auto recycler or a rebuilder and given a salvage title.
Resale value of vehicles with a salvage title

Vehicles which carry a salvage title may not be driven on public roads in some states,[8] which impacts resale value.[7] Rebranding of the title is not permitted without having an inspection to verify that they meet all safety standards.[9] The inspection procedure may be complex,[4] and attempts to illegally circumvent the inspections are periodically reported.[10]

Industry standards followed by the National Automobile Dealers Association Appraisal Guides, Kelley Blue Book Market Report Official Guide, and the International Society of Automotive Appraisers devalue a motor vehicle that has a salvage title. Kelley Blue Book automatically rates any salvage vehicle as "poor" and does not value it at all.[11] The value of a vehicle with a salvaged title is usually 25%-50% lower than the vehicle's estimated value.

Title washing refers to transferring a vehicle's registration for the express purpose of removing a title brand.[12] The practice is legal, and practiced by the insurance companies themselves,[13] Title brands such as "salvage," "junk," and "rebuilt" are not standardized, and a vehicle which has such a designation may receive a clean title when registered in a different jurisdiction. Further, vehicles imported to or exported from the United States and Canada are issued a clean title, even if they have been involved in an accident. Other states have relatively lax inspection criteria to remove the salvage brand.[2]

[Vainglory, Esq.]

Well hold on a second. Doesn't it matter what state we're talking about? Give me a state, and I'll gladly look up the salvage title laws. Perhaps 49 of 50 states would never grant a salvage title upon abandonment, but all it takes is one outlier. After all, that's the entire business model of places like Broadway Title and International Title Service. They find the few states who grant titles under certain circumstances, those circumstances being such that no other state would ever grant a title - and they exploit the loophole. All I'm saying is, maybe there's a loophole?

[Cooter]

I can say for Certain that Broadway Title in Alabama I think it is, is a scam to to the hilt. Use 'em, you deserve to get f*cked.
I called them on Christine, and asked about their "Paperwork" that is "Supposed" to issue a title in the state Of Va.

Well, me not wanting to just waste $175.00, I called the DMV and asked them about BT. They never heard of them, and asked me what am I referring to. I told them I have a car without a title and would like to know if these pieces of paperwork was all I needed to get my title in Va.
Lady said "Ok, how do they issue/come across this paperwork?"
I told her they told me to transfer ownership into their name by signing it over to them, and they send me back a "Certificate of title" for Va.
She then asked "How are you gonna transfer ownership on a car that has no title?"
I then called BT and asked to speak to the owner/manager. I swear this is what happened next.
A guy gets on the phone with a heavy "Middle eastern" Accent......"Ok Sir, Have you ever heard of shooting ones self in ones foot?"

That's EXACTLY what he told me when I told him I called the DMV here to check up on his "Title work".....


I Think many times "Salvage" titles are issued on these older cars so Junkyards can leagally sell "Wrecks" that were never supposed to EVER be put back on the road, and to cover their ass, they "Brand" the car so if you do put it on the road, crash and die in it, you can't sue the junkyard for selling an "Unsafe" car...

That's how it is here in Va. You try and buy a complete body/car from a junkyard, and the first thing you get is "I'll have to cut it in half"...

[stripedelete]

I can say for Certain that Broadway Tile in Alabama I think it is, is a scam to to the hilt. Use 'em, you deserve to get f*cked.
I called them on Christine, and asked about their "Paperwork" that is "Supposed" to issue a title in the state Of Va.

Well, me not wanting to just waste $175.00, I called the DMV and asked them about BT. They never heard of them, and asked me what am I referring to. I told them I have a car without a title and would like to know if these pieces of paperwork was all I needed to get my title in Va.
Lady said "Ok, how do they issue/come across thise peperwork?"
I told her they told me to transfer ownership into their name by signing it over to them, and they send me back a "Certificate of title" for Va.
She then asked "How are you gonna transfer ownership on a car that has no title?"
I then called BT and asked to speak to the owner/manager. I swear this is what happened next.
A guy gets on the phone with a heavy "Middle eastern" Accent......"Ok Sir, Have you ever heard of shooting ones self in ones foot?"

That's EXACTLY what he told me when I told him I called the DMV here to check up on his "Title work".....


I Think many times "Salvage" titles are issued on these older cars so Junkyards can legally sell "Wrecks" that were never supposed to EVER be put back on the road, and to cover their ass, they "Brand" the car so if you do put it on the road, crash and die in it, you can't sue the junkyard for selling an "Unsafe" car...

That's how it is here in Va. You try and buy a complete body/car from a junkyard, and the first thing you get is "I'll have to cut it in half"...

I think it's likely that you would receive from Broadway Title an Alabama Title and a bill-of-sale (back to you).  Once you have that, it's a chip shot to transfer it to VA title.  Which would illustrate Vainglory's' point about loopholes.   Alabama was one of the last states still issuing a title with only a bill-of-sale.  But,,,I THOUGHT that changed. 

Alabama was a "no title" state for many years. When they began requiring a title, they "gandfathered" older vehicles, like other no title states.  However, Alabama did not require a copy the last registration (tags) like other states.  Again, I thought that changed as well.

The fact that your DMV never heard of Broadway Title does not make Broadway a scam, although it could be.  I think the test here is to call an Alabama DMV.  Tell them you just purchased a forty year old car and only have a bill-of-sale and no prior registration.  See what they say. Btw, don't tell them you are not a resident.   They may tell you that based on age, a notarized bill-of-sale will suffice. This is would be were Broadway earns the money because, you would have to have an Alabama notary and proof you are a resident to get it done yourself.

Back to the original topic of salvage title.  The rules around salvage titles are very strict and involve law enforcement in order limit the trade and of stolen parts (chop shops- car theft).  You can't slip a DMV employee some cash and make it happen.  As pointed out, there are sometimes loopholes, but, I would bet it all that a salvage title would not result from a mechanics lien.

[red69superbee]

ive gotten a half dozen titles and used broadway titles paperwork and didnt have one bit of trouble.you do sign it over to them so they can get the bill of sale and send it back to you,they dont want the car and have no reason to screw anyone that way. then take the vehicle to get an IDOD or regular inspection if your gonna put tags on it, IDOD is for title only.The bill of sale they give you is saying you bought it from broadway and getting it tagged in your state, along with inspection too. This was in Missouri, although havent used them in the past few years

[Cooter]

I think it's likely that you would receive from Broadway Title an Alabama Title and a bill-of-sale (back to you).  Once you have that, it's a chip shot to transfer it to VA title.  Which would illustrate Vainglory's' point about loopholes.   Alabama was one of the last states still issuing a title with only a bill-of-sale.  But,,,I THOUGHT that changed. 

This is would be were Broadway earns the money because, you would have to have an Alabama notary and proof you are a resident to get it done yourself.

I got too many buddies in Alabama that will write me a bill-o-sale for free.

[stripedelete]

I think it's likely that you would receive from Broadway Title an Alabama Title and a bill-of-sale (back to you).  Once you have that, it's a chip shot to transfer it to VA title.  Which would illustrate Vainglory's' point about loopholes.   Alabama was one of the last states still issuing a title with only a bill-of-sale.  But,,,I THOUGHT that changed. 

This is would be were Broadway earns the money because, you would have to have an Alabama notary and proof you are a resident to get it done yourself.

I got too many buddies in Alabama that will write me a bill-o-sale for free.

Check the VA DMV.  You will likely need more than a Bill-Of-Sale from a buddy.  (remember after your buddies write you a bill-of-sale you are then attempting to register an out of state vehicle.)

[Old Moparz]

One of the car magazines had an article a few years ago that mentioned how some states will NEVER allow a car with a salvage title to be put back on the road legally. I have no idea how true it is, but they mentioned the state of Texas in the article as being a strict one. There are always loopholes, or states that aren't strict, or people who simply forge paper work to get what they want. I'd be very cautious about ever buying a car with a salvage title that I planned to put back on the road without first researching with my local DMV. Buy it for parts? Definitely.

ive gotten a half dozen titles and used broadway titles paperwork and didnt have one bit of trouble.you do sign it over to them so they can get the bill of sale and send it back to you,they dont want the car and have no reason to screw anyone that way. then take the vehicle to get an IDOD or regular inspection if your gonna put tags on it, IDOD is for title only.The bill of sale they give you is saying you bought it from broadway and getting it tagged in your state, along with inspection too. This was in Missouri, although havent used them in the past few years

I used Broadway Title once, about 10 years ago & didn't have a problem either. It was for a parts car that I bought about 16 years ago that I only got a bill of sale for. I had no intention of doing anything with it other than to keep parts I needed, but I changed my mind & didn't part it out & still have it. The paper work I got from Broadway Title was not a title, it was some form of "transfer of ownership" papers to get the papers in my own state DMV. In my case, the car was older than 1974 so there is only a "Transferable Registration" not a title.

Broadway Title's website states it is up to the person to research the car to make sure it's not stolen or has a salvage title. I contacted the state police before I ever bought the car 16 years ago & gave them the VIN to check & it came back clean. The NYS DMV didn't have any record of it as a salvage vehicle either. There will always be people that abuse the system to get around something. There are stories of VIN tag swaps or "title washing" where a car goes from state to state until it ends up that it's history is changed.

Can Broadway Title be used for illegal transactions? Of course, & so can the DMV. 

[Tilar]

In Ohio a Mechanic's Lein can be used to get a new title so the car can be sold to cover the repair charges. A salvage title is only for totaled or junk vehicles.

Interesting, Because I watch government auctions fairly regular and am looking at a couple in Middletown Ohio, and all of them from this paticular city list all cars with a Salvage title..

SALVAGE TITLE - Under the General Ohio Revised Code, these vehicles are condsidered abandoned vehicles and all we can be issued is a salvage title

Here is the link  http://www.govdeals.com/index.cfm?fa=Main.Item&itemid=1550&acctid=410

[cdr]

In Ohio a Mechanic's Lein can be used to get a new title so the car can be sold to cover the repair charges. A salvage title is only for totaled or junk vehicles.

Interesting, Because I watch government auctions fairly regular and am looking at a couple in Middletown Ohio, and all of them from this paticular city list all cars with a Salvage title..

SALVAGE TITLE - Under the General Ohio Revised Code, these vehicles are condsidered abandoned vehicles and all we can be issued is a salvage title

Here is the link  http://www.govdeals.com/index.cfm?fa=Main.Item&itemid=1550&acctid=410

they are doing a lot of that now,getting rid of older cars,the gobberment wants them to be salvaged ,look at cash for clunkers,LMAO .dont get me started

[Todd Wilson]

I think there can be a salvage title on a stolen vehicle also.   Your vehicle gets ripped off. Insurance settles with you and then 5 months later they find your vehicle you dont get it back. Insurance owns it and then puts a salvage title on it and resells it.


Todd