Wednesday, February 20, 2019

Rules That Need to Be Followed by Auto Salvage Businesses in Tennessee

by Editor (editor), , August 13, 2018

Salvage car business operators need to know and follow the applicable rules.

Buying and selling cars with salvage titles can be extremely lucrative as an increasing number of people are on the lookout for cheap cars and parts while many industries depend on scrap metal for their sustained profitability. However, since every state has its own set of regulations governing the salvage, salvage car business operators need to know and follow the applicable rules.

The Need for Salvage Certificates

It is not legal for a car with a salvage title to be driven on the roads in Tennessee; the cars need to have a salvage certificate first if they have been earlier classified as salvage cars. The Tennessee Department of Revenue specifies that all owners of salvage cars that are less than 10 years old need to submit a completed application requesting for a Tennessee Salvage Certificate along with the original title of the vehicle to the Department of Revenue. In case, the vehicle will undergo repairs and then be sold off as certified pre-owned cars, it is necessary to make another application. The application for a Tennessee Salvage Certificate will typically include details such as the make, model, and the year of manufacture of the vehicle, the odometer reading, and the Vehicle Identification Number (VIN).

The Titling Procedure

When a salvage car is intended to be repaired and made roadworthy, the process of reinstatement of a valid title should be initiated by submitting the application for Motor Vehicle Identification Certification to the Anti-Theft Unit, Special Investigations Division, and Department of Revenue. Along with the form, the salvage title of the vehicle, a notarized affidavit specifying the name and address of the rebuilder in case it is someone else other than the owner, color photographs of the vehicle before and after the repairs, receipts, invoices, etc. for all the parts used to repair the vehicle must be submitted. The documents of the spare parts must invariably contain the names and addresses of the buyer and the seller and the VIN, make, model, and year of the vehicle from which the parts have originally come from. A rebuilt title fee of $75 also needs to be paid.

You will be informed by the DOR if an inspection of the vehicle is required, otherwise, all the documents will be returned and you can obtain your Tennessee rebuilt title from the local county clerk’s office. If an inspection is required, you will need to show all the originals of the documents submitted earlier as well as an affidavit that the vehicle has been repaired to the standards specified by the manufacturer and the state.


Even after the salvage title has been converted to a rebuilt title, all future owners of the vehicle can know the complete history of the car. It is mandatory for salvage yard owners to maintain detailed records on both the vehicle and the seller for a period of three years for vehicles that are less than 10 years old; titles of older vehicles are passed automatically with the transfer of the asset.

About the Writer

Editor is an editor for BrooWaha. For more information, visit the writer's website.
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