If a vehicle has been declared a total loss after an accident, either the insurance company or the owner at the time of the loss may have obtained a salvage title to the vehicle. In most states, it is illegal to operate a vehicle with a salvage title on the roadways. A vehicle that has a salvage title may be used for parts or may be sold in its current condition to an individual who has a clear understanding that he is purchasing a vehicle with a defective title. If the vehicle is repairable, the salvage title may be removed and a rebuilt title issued in its place.
Repair or rebuild the vehicle according to your state's specifications if you are a qualified rebuilder. Some states require that you must be a licensed rebuilder to purchase a salvage vehicle for repair or restoration, and only a licensed rebuilder may complete the necessary paperwork and have the vehicle submitted for inspection to be retitled. Other states may allow you to retain ownership of the vehicle while arranging for the vehicle to be rebuilt by a licensed rebuilder.
Obtain and complete your state's required forms from the motor vehicle department to be submitted to the state for inspection. You will generally be required to complete a tag and title application, a parts certification form, and a form requesting a state vehicle inspection. Most states will require that you produce photographs of the vehicle in its wrecked state, the salvage title issued for the vehicle, any bill of sale where you acquired the vehicle, if applicable, and bills of sale for any parts used in its restoration. If used parts were acquired to restore the vehicle, many states will require that the VIN number of the vehicle from which the parts were taken appear on the bills of sale.
Schedule a vehicle inspection through your state's motor vehicles department. Some states will have an inspection station where the vehicle may be towed for inspection. Remember, you will not be allowed to legally drive the vehicle on the roadways until a rebuilt title has been issued. Present the vehicle for inspection either at its current location or at an inspection station and pay any inspection fees that may be due. Once the vehicle has passed inspection, a decal will be affixed to a specified location on the vehicle itself designating that it passed inspection for retitling as a rebuilt vehicle.
Take your completed paperwork, including proof that the vehicle passed inspection, to the tag and title department to apply for the rebuilt title. You will be required to pay any applicable fees at the time of application. Most state laws provide that the title to a vehicle that has been rebuilt be branded with a statement across its face showing that it is a rebuilt vehicle. Other states are more specific, requiring that the title reflect the type of damage to the vehicle -- such as flood or fire.
