It is important for entrepreneurs in the salvage car business to know the rules applicable in the state of Tennessee. While cars with salvage titles are not permitted to be driven on the roads in the state, it is perfectly legal for cars with salvage certificates to be sold in Tennessee. By following some simple rules laid down by the Tennessee Department of Revenue or at the office of the local county clerk, it is possible to avoid legal complications.

What Are Salvage Cars

Salvage cars are those vehicles that have had insurance companies paying out the cover amount rather than paying for the repairs as it is cheaper. It is not necessary for cars to be extensively damaged to be totaled by the insurance company. For a car that is old, even minor damage to the fender, for example, may make it eligible for totaling. Also, a car that has been stolen and recovered after the insurance company has settled with the owner will be written off by the insurance company and assigned a salvage title.

Issuance of Salvage Certificates

The Tennessee Department of Revenue stipulates that it is mandatory for owners of salvage cars less than 10 years old to submit a completed application form along with the original title to the department for consideration of the issue of a Tennessee Salvage Certificate. The certificate contains all details of the vehicle like the make and model of the car, the year of manufacture, the odometer reading and the Vehicle Identification Number (VIN). After due processing by the Department, the original papers are returned to the applicant. If the vehicle cannot be repaired, it is possible to apply for a Non-repairable Certificate. Issuance of this certificate will prevent the vehicle from being registered or titled in the state of Tennessee, according to the general manager of Ideal Auto USA, among the biggest online dealers of salvage and pre-owned cars.

How to Get a Salvage Vehicle Retitled

If you are interested in repairing the vehicles and selling them to customers who would want to drive it in Tennessee, you will need to apply for restoration of the car title. The process involves the submission of an Application for Motor Vehicle Identification and Vehicle Components enclosing the salvage certificate, the receipts for the parts bought to repair the car, and color photos of the car along with the official fee of $75. If the application is approved, the owner gets back the salvage certificate duly stamped that has then to be taken to the office of the county clerk with the documents for the registration and titling.

Conclusion

All owners of businesses dealing in salvage cars should know that even after the salvage certificate is canceled and the vehicle reregistered, the new title will still carry all pertinent information regarding the salvage history of the car. Owners of scrap yards must also maintain detailed records of the vehicles as well as personal information of the seller, however, they need not bother about whether the vehicle has a valid title or not.

 

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It is important for entrepreneurs in the salvage car business to know the rules applicable in the state of Tennessee. While cars with salvage titles are not permitted to be driven on the roads in the state, it is perfectly legal for cars with salvage certificates to be sold...