Used Cars: Michigan salvage laws, michigan state police, salvage title

Question
QUESTION: Good day. My question is if a vehicle has been declared a total loss in the state of MI if the title will be branded "salvage" forever? I purchased a 2003 vehicle from MI in 10/06. Upon attempting to trade it in, a CARFAX report states it was a "Total Loss" in 10/05. It changed owners 2 more times until I purchased it and received a clean title. Could it be rebuilt and a normal title issued? Do I have legal options? Thank you.

ANSWER: Sorry for the delay I have been off for a few days for the holidays. Once a title has been branded "salvage" it should be that way for life. If the person that owned the vehicle elected to purchase the car back from the insurance company after it had been in the accident and accept a smaller claim, then the title would have never changed hands,thus stayed clean. If the insurance company would have taken the car away and sold it to a junk yard it would have been issued a salvage title by the state since it changed ownership. The previous owner most likely paid for the repairs out of the claim money that the ins co. paid them. A vehicle can be "rebuilt" but the title will state it was rebuilt.The title will never be truly "clean" again A inspection needs to be done by the State of Michigan (State Police) to verify that the vehicle passes all requirements.I am not sure on what all of the requirements are. If you were told the vehicle had a clean title I belive you have some legal options. If you bought it from a dealer and it was not disclosed I would call them ASAP and demand some answers. Buying or selling a car with a salvage title is fine but it has to be disclosed by a dealer.  Hope this helps, Happy New Year!  Shane

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QUESTION: Shane
Great info, thank you very much!! I kept a copy of the MI title and it does not state rebuilt or salvage on it. Obviously mine does not either. The CARFAX stated the veh was declared a total loss in July '05 due to an accident but the title did not change owners until Nov '05 so that fits with the possibility the original owner kept it. The 2nd owner only had it for 1 month then it transferred to the owner I purchased it from, all personal vice dealer. Could this have been done legally in MI? with no comment on the title yet a total loss recorded?

Answer
This could have been done legally by the person you bought it from. Its very possible they didn't have any idea of the previous "total loss" issue. This is an obvious loop hole in the Michigan Insurance system. Anytime someone keeps their vehicle after a total loss this happens. It is the responsibility of the current owner to report the total loss to the DMV but they rarely do. If you bought it from a private party I think you are stuck with it. In Mich all vehicles are sold as is unless there is a written warranty or remaining factory warranty. The second owner could have a case against the first but they would want to check with a Mich. attorney on that. Wish I had better advice for ya. Thanks for the question,  Shane