Salvage Title?

I know we cover this periodically, but I forget. 8^<

What does it mean when you buy a bike with a salvage title? Is it
harder to register? Is it harder or more expensive to insure? Does
it void the warranty? (Just kidding on the last one).

 

It means that the insurance company declared the vehicle in question to
be a total loss. The vehicle may have been wrecked or stolen. It
doesn't mean the vehicle is worthless to *everybody in the world*, it's
just that the insurer doesn't want to pay out the money required to
restore the vehicle to its original condition, because *they* will lose
money on the deal...

In the case of a totally stripped stolen vehicle, somebody may have
already filed for a nonrepairable vehicle certificate, and if you
bought a motor or a frame that is so certified, you wouldn't be able to
register a vehicle constructed of those parts for over 5 years. You'd
have to wait for the information to go out of the DMV's computer...

Other riders have been telling me that "totalled" or "recovered stolen"
motorbikes have very little resale value, and I have no idea how an
insurance company might view the value of a "salvage title" motorbike.
All you need in California is the minimum public liability and property
damage coverage anyway, if you have a enough money to pay full coverage
insurance, you probably wouldn't be interested in fixing up an old
crock to save money, you'd be best friends with the owners of all the
MC shops in the city and you'd be smoking cigars and playing golf with
them instead of wondering how to register an old pile of...

Well, let's say that you get a motorbike from an owner who has retained
the vehicle after the insurance company has paid off on it and maybe
the owner thought he would fix it up, but lost interest and said, "Oh,
screw it, I don't have time for this, I want to *ride*!", so he buys a
new bike and sells his old wrecked bike to you and you manage to get it
running without much trouble before you go down to your unfriendly DMV
office to face the unsympathetic bureaucrat behind the window...

What the Department of Alien Bureaucrats has to say about the subject:

What do you *do* to re-register it?

What Do I Do First? Be sure you have bills of sale for all the major
and minor parts used in the reconstruction of your vehicle. These
documents should identify: The part purchased. The year, make, model,
and Vehicle Identification Number (VIN) of the vehicle from which the
parts were removed. The name, address, telephone number, signature,
and driver license, identification card, Social Security card, or
Federal Employer Identification number of the person from whom you
bought or acquired the part.

(Social secirity number? Yeah, right. I wouldn't give out *my* social
security number to some grungy looking biker that walked into *my*
salvage yard and bought some wheels for a wrecked sportbike. But, as
far as parts that you'll actually need bills of sale for are concerned,
it's just the engine, wheels, and frame. The stupid bitch behind the
counter doesn't know that you had to buy a seat, gas tank, all the
plastic, handlebars, controls, a battery. None of that shit needs a
bill of sale. But the stupid bitch behind the counter demanded a
certificate that my windshield and all the windows were made of *safety
glass*. I told the stupid bitch behind the counter that motorcycles
didn't have windshields or windows and she crawled back under the porch
on that issue, while continuing to snarl about my custom Borrani
wheels, which I'd assembled from hubs, spokes, and rims...)

What Do I Need to Do? You must submit an Application for Registration
(REG 343) containing a Vehicle Construction Statement and signed by all
listed owners. Additional requirements are as follows: First, to prove
your ownership of the vehicle, you must have one of the following:

Salvage Certificate or an application for duplicate endorsed for
transfer to your name.

Bills of Sale from each seller to complete chain of vehicle ownership,
if the Salvage Certificate was not signed.

Vehicle Inspection Revived salvage vehicles are required to be
inspected by the DMV or the California Highway Patrol (CHP) before DMV
can issue title and registration. When the CHP does an inspection you
must bring the bills of sale and proof of ownership previously
discussed to the inspection appointment for review by the inspection
officer. CHP conducts inspections by appointment only. The vehicle
verification is done by the CHP upon referral from DMV. There is a
total loss salvage vehicles and dismantler vehicles inspection fee
which must be paid to the DMV before you will be referred for
verification. When a new title is issued, it will contain a notation
identifying the vehicle as a salvage vehicle.

Brake and Light Inspection Certificates Your vehicle must also pass
brake and light adjustment inspections. Check the yellow pages of your
telephone directory or business guide for state-licensed brake and
light inspection stations. The inspection certificates they issue for
your vehicle are part of the paperwork required for registration.

Exception: When an official brake and light station that inspects
specific vehicles such as motorcycles or large commercial vehicles is
not located within a reasonable distance, the Department of Motor
Vehicles will accept a Miscellaneous Statements of Fact (REG 256) from
a repair shop attesting that the brakes and lights are in proper
working order.

Fees That May Be Due The amount of money you will have to pay to
register the vehicle depends on a variety of factors. The types of fees
which may be collected are:

Inspection Fee This is a required fee for re-registration of salvaged
vehicles.

Registration Fee

Vehicle License Fee The VLF was established by the Legislature in 1935
in lieu of a property tax on vehicles. The formula for VLF assessment
established by the Legislature is based upon the purchase price of the
vehicle or the value of the vehicle when acquired. The VLF decreases
with each renewal for the first 11 years. The DMV returns almost all
vehicle license fee revenue to the cities and counties. For more
details on how your VLF money is used, contact your local city or
county government officials.

Use Tax Collected at the same rate as your California county of
residence sales tax. It is due on all vehicles purchased in California
and those brought into this state. Existing law imposes a use tax on a
vehicle purchased outside of California and brought into California
within 90 days of purchase. New legislation effective October 1, 2004
through July 1, 2006 requires payment of use tax on a vehicle purchased
outside California and brought into California within 365 days of the
purchase date.

Reflectorized License Plate Fee

California Highway Patrol Fee

County Fees Collected at the request of your California county of
residence for special programs.
Service Fees
..
Prior History Fee The department marks the vehicle record to indicate
the vehicle was a prior salvage.

Penalties California-registered vehicles accrue penalties immediately
upon expiration of the registration or Planned Non-Operation status.
Fees for new or nonresident vehicles with no evidence of registration
are due on the date of sale shown on the Salvage Certificate. If a new
or nonresident vehicle had valid registration on the date of loss, fees
become due with the first known operation after the sale date shown on
the Salvage Certificate. Penalties accrue if these fees are not paid
within 20 days of the due date. PTI Trailers are only assessed late use
tax penalties. CHP Inspection Appointment Scheduling CHP inspections
will not be conducted without an appointment, so please call one of the
offices listed below in the county where you are located to set the
appointment date and time. These addresses are for appointment
scheduling and may not be the actual inspection site.

CHP Inspection Appointment Numbers
Northern Division 2485 Sonoma Street Redding, CA 96001-3026 Phone:
(530) 225-2120
Valley Division 11336 Trade Center Drive Rancho Cordova, CA 95741-0640
Phone: (916) 464-2566
Golden Gate Division 1551 Benicia Road Vallejo, CA 94951-7568 Phone:
(510) 622-4611
Central Division 5179 N. Gates Avenue Fresno, CA 93722-6414 Phone:
(559) 488-4053 Coastal Division 4115 Broad Street San Luis Obispo, CA
93401-7963 Phone: (805) 549-3006
Inland Division 847 E. Brier Drive San Bernardino, CA 92408-2820 Phone:
(909) 383-4018
Border Division 1722 East Main Street El Cajon, CA 92021 Phone: (619)
401-2000 13200 Golden West Street Westminster, CA 92683 Phone: (714)
892-4426 2335 Enrico Fermi Drive San Diego, CA 92154 Phone: (858)
492-1745
Southern Division Torrance Phone: (313) 516-3355 Monterey Park Phone:
(323) 980-4600 Woodland Hills Phone: (818) 888-0980

----------------------------------------------------------------------

Some applicable laws dealing with this subject were found at:

http://www.dmv.ca.gov/pubs/vctop/vc/vctoc.htm

Nonrepairable Vehicle
431. A "nonrepairable vehicle" is a vehicle of a type otherwise subject
to registration that meets the criteria specified in subdivision (a),
(b), or (c). The vehicle shall be issued a nonrepairable vehicle
certificate and the vehicle, the vehicle frame, or unitized frame and
body, as applicable, and as defined in Section 670.5, shall not be
titled or registered.
(a) A nonrepairable vehicle is a vehicle that has no resale value
except as a source of parts or scrap metal, and which the owner
irreversibly designates solely as a source of parts or scrap metal.
(b) A nonrepairable vehicle is a completely stripped vehicle (a
surgical strip) recovered from theft, missing all of the bolt on sheet
metal body panels, all of the doors and hatches, substantially all of
the interior components, and substantially all of the grill and light
assemblies, or that the owner designates has little or no resale value
other than its worth as a source of scrap metal, or as a source of a
vehicle identification number that could be used illegally.
(c) A nonrepairable vehicle is a completely burned vehicle (burned
hulk) that has been burned to the extent that there are no more usable
or repairable body or interior components, tires and wheels, or drive
train components, and which the owner irreversibly designates as having
little or no resale value other than its worth as scrap metal or as a
source of a vehicle identification number that could be used illegally.
Added Ch. 1008, Stats. 1994. Effective January 1, 1995. Operative July
1, 1995.
Amended Sec. 1, Ch. 670, Stats. 2002. Effective January 1, 2003.

Revived Salvage Vehicle
521.5. "Revived salvage vehicle" means a total loss salvage vehicle as
defined in Section 544, or a vehicle reported for dismantling pursuant
to Section 5500 or 11520, that has been rebuilt or restored to legal
operating condition with new or used component parts.

Salvage Pool
543. "Salvage pool" means a person engaged exclusively in the business
of disposing of total loss salvage vehicles, nonrepairable vehicles, or
recovered stolen vehicles sent to it by, or on behalf of, insurance
companies, authorized adjusters, leasing companies, self-insured
persons, or financial institutions.
Amended Ch. 996, Stats. 1991. Effective January 1, 1992.
Amended Ch. 1008, Stats. 1994. Effective January 1, 1995. Operative
July 1, 1995.


Total Loss Salvage Vehicle
544. "Total loss salvage vehicle" means either of the following:
(a) A vehicle, other than a nonrepairable vehicle, of a type subject to
registration that has been wrecked, destroyed, or damaged, to the
extent that the owner, leasing company, financial institution, or the
insurance company that insured or is responsible for repair of the
vehicle, considers it uneconomical to repair the vehicle and because of
this, the vehicle is not repaired by or for the person who owned the
vehicle at the time of the event resulting in damage.
(b) A vehicle that was determined to be uneconomical to repair, for
which a total loss payment has been made by an insurer, whether or not
the vehicle is subsequently repaired, if prior to or upon making the
payment to the claimant, the insurer obtains the agreement of the
claimant to the amount of the total loss settlement, and informs the
client that, pursuant to subdivision (a) or (b) of Section 11515, the
total loss settlement must be reported to the Department of Motor
Vehicles, which will issue a salvage certificate for the vehicle.
Amended Ch.1008, Stats. 1994. Effective January 1, 1995. Operative July
1, 1995.
Amended Sec. 4, Ch. 451, Stats. 2003. Effective January 1, 2004.

 

Very nice write-up.
I understand your anger at the woman DMV clerk, but I could do without the
"stupid bitch" name calling. Other than that...great explanation.