Vehicle titles are critical documents in our industry, serving as the legal foundation for every transaction in the salvage market.
While most experienced buyers are familiar with the basics, even veterans can benefit from a clear reference on the different classifications and their implications for your business operations.
A standard title indicates a vehicle has no reported major damage history. These vehicles remain road-legal and can be driven immediately after purchase. While less common at salvage auctions, they occasionally appear and typically command premium prices.
The most prevalent title type in our marketplace. When insurance companies determine repair costs exceed a certain threshold of the vehicle's value (typically 75%), they designate it as "salvage."
Important note: Vehicles with salvage titles cannot legally operate on public roads until properly rebuilt and inspected. These vehicles serve as excellent inventory for rebuilders and parts recyclers alike, depending on damage severity.
Many salvage titles carry supplementary designations that provide crucial information about the specific damage type:
This classification indicates the vehicle has been deemed beyond repair for road use in the United States. Vehicles with non-repairable titles have only three potential paths:
This distinction is particularly important for rebuilders, as non-repairable vehicles have no legal pathway to road registration in the US market.
Unlike salvage titles, vehicles with only cosmetic damage like hail often receive a standard title with a special "hail damage" or similar designation. These vehicles:
The industry is witnessing a gradual transition from traditional paper titles to digital formats. Both serve as legally valid proof of ownership.
The traditional format includes:
As DMV systems modernize, digital titles are becoming increasingly common. These electronic records contain identical legal information as paper titles and are recognized by relevant authorities.
Digital titles offer the same ownership verification while eliminating concerns about physical document storage and potential loss.
Different business operations may have specific title documentation needs:
Your primary concern is verifying legal ownership before dismantling. Both paper and digital titles provide this verification, allowing you to confidently inventory parts for resale.
When shipping vehicles internationally, you need documentation that satisfies both US Customs requirements including a digital or paper title, as well as meets the destination country import regulations.
If your business model involves rehabilitating vehicles for eventual road use, you'll need ownership documentation that facilitates transfer to the vehicle's next owner. This requires:
For rebuilders planning to sell post-restoration, having the title properly assigned to you simplifies the eventual resale process, whether through digital reassignment or traditional paper methods.
Regardless of format, verifying title authenticity remains essential:
A thorough understanding of vehicle title types and their implications helps optimize your salvage business operations. At Salvato, we ensure all vehicles are properly titled with appropriate brands based on their condition, providing the transparency you need to make informed purchasing decisions.
Whether your focus is parts recovery, export, or rebuilding, clear title knowledge helps streamline your processes and maintain compliance while maximizing profitability.