Texas Auto Salvage Title Laws

It is important as a consumer to feel confident in the safety of the vehicle you buy. You need some type of assurance that a vehicle will operate safely and as expected. When purchasing a vehicle used, you have the right to know if the vehicle has a salvaged status – meaning it was in an accident that left it totaled or unsafe to drive. A salvaged vehicle is one worth less than the cost of repairs after a car accident. All owners with these vehicles must lawfully obtain auto salvage titles to warn others of its crash history.

What Is a Salvaged Vehicle?

A salvaged vehicle under Texas law is one that is no longer safe to use. It is a vehicle that is too dangerous to drive based on its crash or incident history. In most cases, a salvaged vehicle is one with damage that is worth 75% or more of the vehicle’s total value. This percentage can vary by state. Texas does not have a set percentage. Instead, it considers a vehicle a salvage when repair costs (minus new paint) exceed the pre-crash value of the vehicle. Older vehicles, therefore, are more likely to receive the status of salvage after a damaging crash or flood.

What Are the Requirements to Obtain an Auto Salvage Title?

Before the owner of a salvage vehicle can sell or transfer the title to someone else, the owner must apply for a salvage, rebuilt salvage or nonrepairable title. This title will tell others about the vehicle’s history. A regular salvage title will warn consumers and used car shops that the vehicle is unsafe for use. A rebuilt salvage title could mean the vehicle is now usable while still warning shoppers about its history. Without obtaining an auto salvage title, the owner cannot lawfully sell or transfer the vehicle to another party. Obtaining a salvage title in Texas takes a few steps.

• Filling out the Application for a Certified Copy of a Texas Nonrepairable or Salvage Vehicle Title, found on the Texas Department of Motor Vehicles website.
• Including information such as the vehicle’s identification number, model, make, year, title number and a signature certifying that it is the owner or a verified agent of the owner.
• Mailing in the application and any related documents to the TxDOT’s Vehicle Titles and Registration Division, along with the $2 filing fee.

Obtaining a salvaged vehicle title from the TxDOT is a legal requirement. Unfortunately, some owners of salvaged vehicles try to make a profit by selling their cars without obtaining salvage titles. This is an offense in Texas that could lead to civil and criminal charges. If the salvaged vehicle breaks down and causes a car accident, the victim of the crash may have grounds for a negligence claim against the previous owner for failing to register it as a salvaged vehicle.

What If You Bought a Salvaged Vehicle Accidentally?

It is possible to legally resell a salvaged vehicle in Texas. The owner must simply have the proper salvage or rebuilt salvage title to show buyers that the vehicle sustained significant damage. A rebuilt vehicle must pass safety inspections and meet many state standards before resale. Trying to sell a salvage vehicle without the right title is against the law in Texas. Failing to brand a vehicle as salvage, even after rebuilding it to roadworthiness, could put a buyer at risk.

If you purchased a salvage vehicle without realizing it due to the lack of a proper title, you could have grounds for a claim against the prior owner after a related car accident. The owner may owe you compensation for selling you an unsafe vehicle without the proper salvage title. This is an act of negligence that could make the owner liable for your injuries, damages and losses. Speak to a car accident lawyer in Texas after a crash in a vehicle you believe is salvage for more information.