Junk Title and Salvage Title: What's the Difference?

It’s likely that you’ve encountered many salvage title cars in your hunt for something cheap, but have you ever heard of something with a junk title? They aren’t as common, but you need to know what you are looking at so you don’t get ripped off by a potential seller.

Difference Between a Junk Title vs. Salvage Title

With a salvage title, the insurance company deemed the car unsafe to drive and recommended that it be taken off the road. With that said, they also left the door open to repair the vehicle and have it inspected for a new title and registration. A Prior Salvage title or Rebuilt Title may be issued after the car has been deemed roadworthy by an official inspecting body. That’s not the case with a junk car. In fact, the DMV states that:

“A junk vehicle is not safe to operate on U.S. roads and highways. It should never be titled or registered. The vehicle should only be sold as parts or scraps.”

In other words, a vehicle with a Junk Title doesn’t have any value except for what can be recouped through the sale of parts or scrap. It’s supposed to be crushed or sent to the junkyard, not to be sold for road use.

Why do some cars receive a salvage title while others get written off as junk? A Junk Title car cannot be registered for road use again. It might have received extensive damage to the frame or been involved in a flood. After the loss, the insurance company decided there was no possible way for it to be rebuilt. The most common way a car receives a Junk Title is by being sold to a junkyard or dismantler.

If a Car Is Advertised as “Parts Only,” Ask Why

Sellers can often mistakenly advertise their cars as “parts only” when they believe the car cannot be repaired. Trouble is, that sounds a lot like a car having a salvage or junk title status when it might actually be clean. Ask the seller to confirm what they mean and run a VIN check on the car just to be sure.

What Can You Do With a Junk Title?

There’s really only one option once you have a junk titled car: take what you need and send the rest to the scrap yard.

While we can’t give you the specific requirements and steps to do this, because they vary by state, we do have a general course of action for you to follow.

Source

1. Dismantle the Car

Your first option is to dismantle the vehicle yourself and sell off the parts. If you are mechanically inclined, you’ll probably make more money this way, but it’s going to take up a good chunk of your time. More commonly, you’re using the parts on a similar car.

Some junkyards give you more money if you give them the pieces rather than the entire car. Others pay strictly by weight and the weight of each component will never match its resale value. This is something you’ll want to work out with them in advance. Make sure you also figure out what you’ll do with the non-metal components such as the tires if the scrap yard won’t take them.

Either way, you probably don’t want to be stuck with parts of the car when it’s all said and done.

2. Sell the Whole Car to a Junkyard or Dismantler

If you plan to sell your junk car to a scrap yard, there are a few things you might need. First, they will probably want to see your registration and title – it might not need to be in your name, simply signed by the seller. That varies by state. The yard will also have questions, such as:

• Is the vehicle operable?

• What parts are damaged?

• What is the book value?

Before you give up a whole car to the junkyard, make sure you check with the DMV about your responsibilities. Some states require specific documents from anyone selling their car for junk. You might be required to fill out some paperwork like the Damage Disclosure Statement on the back of your title. They might also require you to relinquish your license plate. Call your local DMV to learn more.

At the end of the day, you’ll usually make less money with less hassle by advertising your car on classifieds sites – even if it’s just a parts car.

3. Get a Certificate of Destruction

We’ve touched on this briefly before, but it’s worth repeating. When you sell your car to a salvage yard or dismantler, make sure you get a Certificate of Destruction.

A Certificate of Destruction releases you from all responsibility with the car by certifying that the car:

• Is no longer on the road

• Is no longer registered

• Has been or will be destroyed according to the law

Any reputable company is going to offer this to you. It’s the final stage of proving your ownership to the vehicle. You don’t want to find out later that something happened illegally with your car and it is still registered to you, like perhaps the yard owner got a speeding ticket in it. Cover all your bases!

Tips for Selling Your Junk Car

Before you turn your car over to that junkyard, make sure you heed a couple of tips to make the transaction smooth.

1. Remove Your Belongings

Your car is not a trash dumpster. Don’t expect the junkyard to dispose of everything for you. Even if you think that the items inside your vehicle aren’t necessary, you’ll want to go through them and make sure you aren’t missing anything.

Otherwise, a week from now you might be looking for that valuable earring you lost and realize it was probably in the car. Check all the nooks and crannies, because your car probably accumulated many things while you’ve had it. Make sure you also check the CD or DVD player before turning it over. You don’t want to go giving away your favorite Britney Spears album.

Source

2. Sell Some Parts – Or Sell the Whole Car for Parts

Before you get a price on your car, you might want to consider taking a few items off. For example, if you have an expensive pair of rims or a high-end stereo system inside, the junkyard isn’t going to offer you more for it. Put it up for sale and make a little extra money.

You could also place a local classified ad saying that you have a car you’re planning to crush and offering to let people take the parts they need for a discounted rate. You won’t get top dollar from the parts but you should easily accrue some extra money without reducing what the salvage yard will pay for what’s left.

Try offering the whole car for $50 to $100 above scrap value for a week before taking it to the scrap yard. Chances are someone out there would see that as worthwhile and haul it away for you.

3. Shop for the Best Price

Just like anything in life, a little extra effort might mean more money in your pocket. If you live in an area with multiple junkyards, don’t be afraid to shop for the best price through junkyards, auto dismantlers, and metal salvage facilities.

The junker closest to you might not pay you as much as the one across town. Make a few phone calls and see how much you can really get.

4. Have Your Paperwork Prepared

Whether you have the car towed or take it yourself, other people don’t want to stand around waiting for you to get everything in order. Have all your paperwork ready and make sure you’ve removed the license plate. This enables a quick and smooth transaction for both of you.

In some states, you may be required to possess a title in your name before you can scrap a car. If you need a title to junk your car, Dirt Legal can help.

In addition to offering quick VIN Checks, we have obtained countless new titles for owners of cars, trucks, SUVs, dirt bikes, and just about anything with wheels. If you need a title to send your car off to the scrap yard, order one now or bookmark our services for later.

We are not attorneys. This article is not legal advice. Cover image source