What Are the Laws When Buying a Salvaged Car in California?

The California Department of Motor Vehicles allows drivers to buy salvaged vehicles or parts either directly from a junkyard or from a used car dealer. California law requires dealers to disclose that a vehicle has been in an accident as well as mandating that buyers pass multiple inspections before driving a salvaged or junked vehicle.

Definition

The California DMV defines a salvaged car as any vehicle that has either been destroyed to the point that repairs are impossible or has not been repaired because the owner's insurance company refuses to cover the cost of repair. Vehicles that the insurance company refuses to repair are known as "totaled" vehicles because the insurance company deems them as total losses.

Salvage Vehicles and Titles

When a car is totaled, the owner must exchange the car's title at the California DMV for a certificate of salvage. If the owner then repairs the vehicle, she may exchange the certificate of salvage for a special title called a revival of salvage title. Salvaged vehicles will never have an ordinary title again; it is illegal to sell a salvaged vehicle without a title indicating that it has been totaled.

Junked Vehicles

Junked vehicles are another type of salvaged vehicle. A junked vehicle is a vehicle made up entirely of parts from one or more salvaged vehicles. These vehicles must be re-registered as junked vehicles before they may be sold. Sellers must provide paperwork for each part sold to a customer; the customer needs to present this paperwork when re-registering the junked vehicle.

Salvage Vehicle Inspections

Before the new owner can drive a salvaged vehicle, it must pass two DMV inspections. First, the DMV must inspect all parts used in the vehicle to ensure they were bought legally. It is illegal to purchase stolen parts, even if the consumer did not know the parts were stolen. The DMV may seize any parts or the entire vehicle if the parts were not bought legally. The parts inspection costs $50 as of 2010 and is done by appointment.

Once this inspection is completed, the vehicle must also pass a brake and light safety test. This inspection is not performed at the DMV; the owner goes to a state-certified inspection site. The mechanic gives the owner a certificate of brake and light safety once the inspection is complete.

Re-registration

The vehicle must be re-registered in the new owner's name after sale. To re-register, the owner must possess the revival of salvage title, bill of sale and certificates of inspection. The owner must also present proof of insurance to the DMV in order to re-register the vehicle.