Dealer Manual CHAPTER 5

Chapter 5 – Distressed Vehicles ______Page 1

Revised July 2023

Chapter 5

Distressed Vehicles

Section 5-1

Salvage Titles and Scrap Titles

5-1.1 Authorization. Section 248 of the Michigan Vehicle Code (MCL 257.248) provides that

Michigan dealers with a C, F, H or R license classification may deal in salvage and scrap titled

vehicles and salvageable parts. Additional record keeping is required.

NOTE: The list of non-salvageable parts is printed on the face of Michigan salvage and scrap

titles.

5-1.2 Definition. Salvage or scrap titles are issued when insurance companies acquire late

model distressed vehicles. However, when a dealer acquires a late model distressed vehicle yet

titled with a salvage or scrap title, the dealer must apply for a salvage or scrap title. Note: A

dealer must apply for a scrap title within 5 days (MCL 257.217c (5)).

Salvage vs. Scrap. A distressed vehicle is a late model vehicle (see Section 5-2 for

definition) with one or more major component parts that has been wrecked, destroyed,

damaged, stolen, or missing to the extent that the estimated cost to repair the vehicle,

including parts and labor, is 75% or more of the vehicle’s pre-damaged cash value.

a) For late model vehicles, a salvage title is required if the estimated cost of repairs is

75% or more but less than 91% of the pre-damaged cash value.

b) For late model vehicles, a scrap title is required if the estimated cost of repairs is

91% or more of the pre-damaged cash value.

NOTE: A vehicle owner may apply for a salvage title or scrap title any time regardless of the age

of the vehicle or extent of the damages, but there are specific circumstances when an owner must

apply for salvage or scrap title.

5-1.3 On-Road Use. Salvage-titled vehicles may be rebuilt for on-road use (See Section 5-7 for

more information). Scrap-titled vehicles cannot be rebuilt for on-road use. They can only be

used for parts or scrap metal.

5-1.4 Estimated Cost of Parts. This is determined using the current published retail cost of

original equipment manufacturer (OEM) parts or the actual cost of parts needed to repair the

vehicle.

5-1.5 Estimated Cost of Labor. This is calculated using the hourly rate and time allocations

that are reasonable and commonly assessed in the repair industry in the community where the

repairs are performed.

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Revised July 2023

Section 5-2

Late Model Vehicles

A late model vehicle is defined as a vehicle weighing less than 8,000 pounds and manufactured

within the last six model years, or a vehicle over 8,000 pounds and manufactured within the last

16 model years. (MCL 257.24b)

NOTE: A Class C, Class H or Class R Dealer License is required to obtain a late model salvage

vehicle, including vehicles from out of state.

Section 5-3

Salvage Vehicles

5-3.1 Definition. A salvage vehicle is a late model distressed vehicle where the estimated cost

of repair, (including parts and labor, is 75% or greater, but less than 91% of the vehicle’s pre-

damaged cash value. A salvage vehicle may also come into Michigan with a comparable title

from another state or jurisdiction.

5-3.2 Requirement. If a dealer acquires a late model vehicle that meets the definition of a

distressed vehicle and has not yet been titled as salvage, Michigan law requires the dealer to

apply for a salvage title.

5-3.3 Applying for a Salvage Title. The dealer submits form TR-12, Application for Original

Michigan Salvage Title or Scrap Title, along with the vehicle title and an RD-108 to a Secretary

of State branch office.

5-3.4 Major Component Parts. The following is a list of major component parts:

a) Engine;

b) Transmission;

c) Right or left front fender;

d) Hood;

e) A door allowing entrance to or exit from the vehicle’s passenger compartment;

f) Front or rear bumper;

g) Right or left rear quarter panel;

h) Deck lid, tailgate or hatchback;

i) Trunk floor pan;

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j) Cargo box of a pickup;

k) Frame, or if the vehicle has a unitized body, the supporting structures that serve as

the frame;

l) Cab of a truck;

m) Body of a passenger vehicle.

Section 5-4

Salvage Disclosure

5-4.1 Requirement. When a late model rebuilt salvage vehicle is sold at retail or wholesale, the

selling dealer must disclose its previous salvage status in writing to the purchaser. If it is a retail

sale, the dealer must also check the appropriate box under the Vehicle History and Title Brand

Disclosure section of the RD-108. Salvage disclosure must be given to the purchaser before the

agreement to purchase is reached.

5-4.2 Disclosure Language. The salvage disclosure must contain a written statement that reads:

“The purchaser of this vehicle has been informed by the seller, before entering into an

agreement of sale, that the vehicle described below was previously wrecked,

destroyed, or damaged to the extent that a previous owner considered the vehicle

uneconomical to repair.”

NOTE: A Salvage Disclosure template is found at the end of this chapter and on the

Michigan Department of State website under Publications and Forms.

5-4.3 Signatures. The disclosure must contain spaces for the purchaser’s and seller’s signature

and date. The disclosure must be presented to, and signed by, the seller and purchaser before

entering into a sales agreement.

5-4.4 Vehicle Description. A detailed description of the vehicle must be written on the

disclosure, including:

a) Vehicle make and model;

b) Model year;

c) Vehicle Identification Number (VIN).

5-4.5 Distribution of Copies. A copy of the signed salvage disclosure must be given to the

purchaser at the time of signing. Additionally, a signed copy of the salvage disclosure must be

kept in the vehicle deal jacket for five years at the licensed location or following approval from

the Department at a secondary location owned by the dealer that is located within a 15-mile

radius.

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Section 5-5

Salvage Vehicle Agent

5-5.1 Authorization. Salvage Vehicle Agents licensed by the Michigan Department of State

are the only persons authorized to buy late model salvage, scrap-titled vehicles, or salvageable

parts at salvage pools or auctions.

5-5.2 Specific Dealer Classifications. Class C, H, and R dealers are the only dealers permitted

to have Salvage Vehicle Agents. Each Class C, H, and R dealer may have two Salvage Vehicle

Agents (including the dealer). A Salvage Vehicle Agent may represent their dealership of

employment when dealing in late model salvage vehicles, scrap-titled vehicles, or salvageable

parts.

5-5.3 License Expiration. The license for the Salvage Vehicle Agent is associated with the

employing dealer’s license. The Salvage Vehicle Agent license expires and is renewed with the

associated dealer’s license. Both the dealer and the Salvage Vehicle Agent applicant must sign

the application. Form AR-0188, Original Salvage Vehicle Agent Application is available on the

Secretary of State’s website at www.Michigan.gov/SOS (‘Industry Services’ from the top menu,

‘Dealers’ on the left navigation, ‘Forms and Publications’), or the account manager can apply

through the dealer’s e-Services account.

5-5.4 Photo Identification. Upon approval, the salvage vehicle agent will receive an

authorization letter with instructions on how to obtain a photo salvage agent identification card.

The agent must prominently display the ID card when attending salvage pools or auctions where

late model salvage vehicles or scrap-titled vehicles are being sold. The Salvage Vehicle Agent

license and ID card are not transferable.

If any of the salvage vehicle agent’s information changes or the agent loses their photo

identification card, the dealer must submit form AR-0191, Salvage Vehicle Agent Application for

Corrected or Duplicate License. This form is available on the Secretary of State’s website at

www.Michigan.gov/SOS (‘Industry Services’ from the top menu, ‘Dealers’ on the left

navigation, ‘Forms and Publications’) or by calling the Department of State Information Center

at 1-888-SOS-MICH (1-888-767-6424).

If the dealer hires a new Salvage Vehicle Agent, the dealer submits an original Form AR-0188,

Original Salvage Vehicle Agent Application and surrenders the license of the old agent to the

Michigan Department of State. A dealer may also cancel a salvage vehicle agent’s association

with their dealership and apply for a new agent through their e-Services account.

Section 5-6

Out-of-State Salvage, Scrap, or Flood Vehicles

Vehicles brought into Michigan from another state or province with a salvage, scrap, rebuilt,

flood damage, or equivalent title must be issued a comparable Michigan title. In the Remarks

section of the RD-108 the dealer enters the name of the issuing state and the title brand from that

state.

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Also check the appropriate box under the Vehicle History and Title Brand Disclosure section of

the RD-108.

NOTE: A Class C, Class H or Class R Dealer License is required to obtain a late model,

salvage vehicle, including obtaining late model, salvage vehicles out of state.

Section 5-7

Rebuilt Salvage

5-7.1 Recertification Inspection. Before a salvage-titled vehicle can be registered for on-road

use, it must be inspected by a certified Michigan Salvage Vehicle Inspector. Once the vehicle

passes an inspection, the owner may apply for a rebuilt salvage title. A list of salvage vehicle

inspectors by county is available on the e-Services webpage under “Salvage Vehicle Inspector.”

a) Application Process. To apply for an inspection, a dealer first completes form

TR-13A, Application for Salvage Vehicle Inspection. TR-13A forms are available

on the Secretary of State’s website, www.Michigan.gov/SOS (‘Industry Services’

from the top menu, ‘Vehicle Dealers’ on the left navigation, ‘Forms and

Publications’). The TR-13A form requires that a certified mechanic in any area of

the repair(s) being performed must certify that all repairs were done in a workman

like manner.

NOTE: The mechanic listed on the TR-13A forms must be a certified mechanic in the

specialty category of the repairs that were performed. At a minimum, any mechanic listed

on the TR-13A should be a certified mechanic with both the unitized body and structural

repair, and collision related mechanical repair specialty categories.

b) Scheduling Inspection. The completed form TR-13A, Application for Salvage

Vehicle Inspection, the salvage title, and all receipts for major component parts

used to rebuild the vehicle are presented to a certified Salvage Vehicle Inspector.

After reviewing the documents, the inspector will schedule a vehicle inspection.

The inspector will ensure that:

1) The VINs and the parts identification numbers are correct.

2) The applicant has proof of ownership of repair parts used.

3) vehicle complies with the vehicle standards of the Code.

4) repairs performed on the vehicle were done in a workmanlike manner as

certified on the TR-13A by a properly licensed mechanic in the appropriate

specialty.

NOTE: Any missing requirements will result in a failed inspection.

5-7.2 Road Use. A Salvage title does not authorize the dealer to drive the vehicle; it authorizes

the dealer to possess and transport the vehicle. The salvage vehicle cannot be driven on public

roads until the vehicle has passed the inspection by a certified Salvage Vehicle Inspector and has

been issued a Rebuilt Salvage title by the Secretary of State. (MCL 257.217c (13))

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A late model salvage title vehicle may be legally driven by the most direct route to and from a

Salvage Vehicle Inspection without a registration or license plate. (MCL 257.216 (h))

5-7.3 Re-titling for On-road Use/Registration. Once the salvage vehicle inspector determines

the vehicle has passed the inspection and completes and signs form TR-13B, Salvage

Recertification, the vehicle is eligible for a Rebuilt Salvage title and on-road use/registration.

5-7.4 Selling Rebuilt Salvage Vehicles at Retail. When selling a rebuilt salvage vehicle, the

dealer must apply for title and registration in the purchaser’s name. Forms TR-13A and TR-13B

are submitted with the RD-108. A separate odometer disclosure is required. Written salvage

disclosure must be given and be signed by the purchaser on all late model vehicles indicating the

vehicle was previously a distressed vehicle.

5-7.5 Road Use. A Salvage title authorizes the holder of the title to possess, transport, but not

drive upon a highway, a vehicle. The salvage vehicle may not be driven upon a highway until the

vehicle has passed the inspection by a certified Salvage Vehicle Inspector and has been issued a

Rebuilt Salvage title by the Secretary of State.

NOTE: All subsequent titles issued for rebuilt and recertified vehicles will contain a legend that

reads, “REBUILT SALVAGE.”

Section 5-8

Scrap Vehicles

5-8.1 Definition. A scrap title is required on a late model distressed vehicle if the estimated cost

of repairs, including parts and labor, is 91% or more of the pre-damaged cash value. A scrap

vehicle may also come into Michigan with a comparable title from another state or jurisdiction.

5-8.2 Requirement. If a dealer acquires a late model vehicle that meets the definition of a scrap

vehicle that has not yet been titled as scrap, the dealer is required to apply for the scrap title

within five days.

Once a scrap title is issued, the Vehicle Identification Number (VIN) for the vehicle is canceled,

or “killed.” The vehicle cannot be repaired or rebuilt for on-road use. Vehicles with scrap titles

can only be dismantled and sold as parts or sold to a vehicle scrap metal processor for metal

recycling.

a) Class C, H, and R dealers may sell major component parts on bills of sale

(invoices) after the parts have been removed from the frame or unitized body

supporting structure of a scrap vehicle.

b) The dealer must assign and mark a part number on each major component part.

Each part number and description must be listed on the bill of sale.

c) The scrap title shall only be reassigned to a class C, F, H or R dealer using the

assignment on the face of the title and only to a class F scrap metal processor on

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the second reassignment on the face of the title.

The VIN is canceled or “killed” by marking SCRAP or JUNK across the face of

the title, along with the dealer’s license number and initials or signature, and

mailing the title to the Michigan Department of State, Customer Records Division,

Vehicle Records Activity Sub-Unit, 7064 Crowner Dr., Lansing, Michigan 48918.

See Section 5.13.5 for information recording these VINs on the TR-9, Scrap vehicle

Inventory Form.

Section 5-9

Assembled Vehicles

5-9.1 Definition. An assembled vehicle is:

a) One built (assembled) from new or used materials and parts by someone not

recognized as a manufacturer (usually an individual).

Example: a homemade vehicle.

b) One assembled from a kit (often called “kit cars”), even if an MCO is provided.

c) One altered or modified to the extent that it no longer reflects its original

manufacturer identification.

Example: a Volkswagen made into a dune buggy.

NOTE: Simply replacing the hood, fenders, trunk lid, engine, etc., does not dictate assembled

status, unless the vehicle is no longer recognizable as its original year, make, and model.

5-9.2 Requirements. Scrap-titled vehicles must be completely dismantled, with all major

component parts removed from the frame or unitized body supporting structure, before the frame

or unitized body supporting structure may be used as part of an assembled vehicle.

a) To qualify for an assembled vehicle title, a vehicle assembled from scrap vehicle

parts must be made up of major component parts from two or more vehicles. An

assembled vehicle may not include both the frame (and unitized body

supporting structure) and any other major component part from the same

scrap-titled vehicle.

b) For assembled vehicles, the “year” is the year the first title application is processed

and the “make” is “Assembled.” The VIN is a new state-assigned (MI) number.

NOTE: It is a crime to remove an existing VIN plate or to be in possession of VIN plates.

Michigan law deems this a felony, punishable by imprisonment for not more than four years, a

fine of not more than $10,000, or both, and revocation of the dealer’s license. VIN plates cannot

be removed or moved from one vehicle to another.

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5-9.3 Applying for an Assembled Vehicle Title. To apply for an assembled vehicle title and

the Department of State assigned VIN, obtain form BFS-72, Instructions for Titling an

Assembled Vehicle, on-line or from a Secretary of State branch office. Dealers need the

following to apply for the title:

a) Any titles or properly assigned ownership documents (BDVR-141, TR-42, TR-

52L, or TR-208) from vehicles used in the assembly process.

b) Form TR-54, Vehicle Number and On-Road Equipment Inspection, with Parts 1

and 2 completed by a police officer.

c) Original bills of sale, or if the parts were already owned and no bill of sale exists,

form TR-34, Certification, documenting how the parts were obtained. Form TR-34

must include the serial number on the part and a statement that the applicant is the

rightful owner.

d) Form TR-34, Certification, is also used for summarizing the building process of

the vehicle. It must include a description of the vehicle and its parts, who

assembled the vehicle, when and where it was assembled, and any special

information about the vehicle.

Section 5-10

Reconstructed Vehicles

5-10.1 Definition. A reconstructed vehicle is one extensively rebuilt with parts from two or

more vehicles which are the same year and model. Usually this involves intermixing major

component frame and body parts from two vehicles. Most often the vehicle is an older model or

antique. Example: A 1957 Chevrolet reconstructed using two or more 1957 Chevrolets.

5-10.2 Requirements.

A reconstructed vehicle includes one with a body unit (passenger body or pickup truck cab)

replaced with an identical style body unit which doesn’t alter the vehicle’s original configuration.

Example: A 2014 Ford pickup truck has its cab replaced with an identical cab from a

2012 Ford pickup.

The manufacturer’s year and make will remain the same. The VIN is a new state-assigned

number.

NOTE: An assigned VIN with an “R” in the 7

position is issued to an older vehicle or trailer

coach whose VIN is missing and can’t be found. Unless built from two or more vehicles, the

vehicle isn’t considered reconstructed.

5-10.3 Applying for a Reconstructed Title. Dealers need the following to apply for a

reconstructed title and the MI VIN:

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a) Signed TR-11L

b) Any titles or properly assigned ownership documents (BDVR-141, TR-42, TR-52L,

or TR-208) from vehicles used in the reconstruction process.

a. All ownership documents must include:

i. The applicant’s name and address or the name and address of the

person who assembled or reconstructed the vehicle for the owner.

ii. The date of purchase.

iii. A description of the parts and the purchase price. If there are any

serial numbers on the parts, they must be shown.

iv. The name, address, and telephone number (if available) of the parts

dealer or person who sold the parts.

c) Form TR-54, Vehicle Number and On-Road Equipment Inspection, with Parts 1

and 2 completed by a police officer.

d) Original bills of sale, or if the parts were already owned and no bill of sale exists,

form TR-34, Certification, documenting how the parts were obtained. Form TR-34

must include the serial number on the part and a statement that the applicant is the

rightful owner.

e) Form TR-34, Certification, is also used for summarizing the building process of

the vehicle. It must include a description of the vehicle and its parts, who

assembled the vehicle, when and where it was assembled, and any special

information about the vehicle.

f) If the vehicle is model year 2011 of newer and has an odometer, a BDVR-108

Odometer Mileage Statement is required. If the vehicle doesn’t have an odometer,

the applicant notes this on the BDVR-108.

Section 5-11

Replacement VIN

5-11.1 Requirement. If the manufacturer’s VIN plate is missing from a vehicle, or if the part

containing the VIN plate was replaced, the dealer must apply for a replacement VIN at a

Secretary of State branch office.

5-11.2 Applying for a Replacement Manufacturer’s VIN or Replacement MI-Assigned

VIN. Dealers should complete a Form TR-34, Certification, stating why a replacement VIN is

needed. This form can be found on the SOS website under Publication and Forms.

VIN Sticker. Once the application is approved, Michigan Department of State personnel will

apply a replacement VIN sticker containing the original manufacturer’s VIN or a replacement

MI-assigned VIN to the vehicle.

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Section 5-12

Flood Damaged Vehicles

5-12.1 Requirement. All vehicles and trailer coaches meeting the definition of a flood

damaged vehicle (see Section 5-11.2 for definition) must be issued a title with the Flood brand

that indicates to future purchasers the flood damaged history of the vehicle. Michigan vehicle

titles with flood branding are orange (like salvage titles) to alert purchasers. Vehicles with a

Flood brand title are not required to be re-certified for road use by a Salvage Vehicle Inspector

unless the title also has a salvage brand.

NOTE: Flood damage brands on out-of-state titles must be carried forward to the Michigan title.

5-12.2 Definition. A flood damaged vehicle is defined as a vehicle submerged in water to the

point water entered the passenger compartment or trunk over the sill of the trunk floor pan or

door sill, or a vehicle acquired by an insurance company as part of the settlement of a water

damage claim. [MCL 257.17c]

5-12.3 Selling at Retail. When selling a flood damaged vehicle to a retail purchaser, the dealer

must check the box marked “Vehicle Has Been Flood Damaged” under the Vehicle History and

Title Brand Disclosure section on the RD-108.

Section 5-13

Record Keeping Requirements

5-13.1 Proof of Ownership. Dealers must have a properly assigned title, salvage title, scrap

title, or other properly assigned ownership document for every vehicle in their inventory.

Properly assigned ownership documents include the BDVR-141 Statement of Seizure &

Forfeiture, TR-42 Garage Keeper’s Lien Form, TR-52L Notice of Abandoned Vehicle Bill of Sale

Form, TR-10 Certification of Repossession, and TR-208 Certificate of Scrapping. Odometer

disclosure is required on each of these ownership documents. You must immediately apply for a

resale title if you acquire a vehicle with a BDVR-141, TR-42, TR-52L, or TR-10, as you cannot

reassign ownership or give proper odometer disclosure on these forms.

5-13.2 Scrap Metal Processor Exception. A Vehicle Scrap Metal Processor (Class F) is not

required to obtain a title for vehicles purchased from another licensed dealer. Class C, H, and R

dealers transfer ownership of vehicles to a scrap metal processor on a TR-9 Scrap Vehicle

Inventory form. (Class C, H, and R dealers have already written SCRAP or JUNK across the

face of the title and mailed the titles to the Michigan Department of State and listed the vehicles

on the TR-9 Scrap Vehicle Inventory form.) All other dealers dispose of the vehicle utilizing the

TR-52, or TR-208 Certificate of Scrapping by forfeiting the form to the scrap metal processor.

Vehicle Scrap Metal Processors who obtain a vehicle with an assigned title are required by

Michigan law to surrender the assigned title to the Secretary of State within 30 days of

destroying or scrapping the vehicle. The Class F dealer writes SCRAP or JUNK across the

face of the title, along with the dealer’s license number and initials or signature, then mails

the title to the Secretary of State within 30 days. Titles are mailed to:

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Michigan Department of State

Vehicle Records Activity Sub-Unit

7064 Crowner Dr.

Lansing, Michigan 48918

5-13.3 Police Book Requirements. When dealers acquire whole vehicles to be dismantled, the

vehicles are logged into the dealer’s Police Book. As individual major component parts are

removed, they are logged into the dealer’s Major Component Parts Record (SOS-426). The

Major Component Parts Record must be maintained in or attached to the Police Book. Class F

Vehicle Scrap Metal Processors are required to make Police Book entries only for vehicles not

acquired on TR-9 forms.

5-13.4 Major Component Parts Record (SOS-426). Class C, H, and R dealers are required to

keep a record of late model major component parts bought, sold, or removed from a vehicle.

Parts acquired are assigned a stock number and logged into the record. The stock number must

be permanently marked on the part. Disposed parts are also logged in the Major Component

Parts Record.

a) Required Information. A sample of the Major Component Parts Record appears

at the end of this chapter. It may be photocopied for use, or an electronic copy is

available on the Secretary of State website. A Major Component Parts Record

must contain the following information:

1) A description of major component parts purchased and sold;

2) Names and addresses of sellers and purchasers;

3) Date of parts purchase and sale;

4) VIN or stock number assigned by the dealer;

5) Incoming and outgoing invoice numbers.

b) Computerized Records. The Major Component Parts Record may be kept

electronically. A sample copy is available at the end of this chapter or on the

Secretary of State’s website. A paper copy of the data entries and reference codes

must be accessible to investigators. See Chapter 2, for additional information on

electronic record keeping.

5-13.5 Scrap Vehicle Inventory, Form TR-9. A dealer selling or assigning a vehicle or its

remaining parts to a Class F Vehicle Scrap Metal Processor must reassign the title or complete

form TR-9, Scrap Vehicle Inventory.

TR-9 forms are available to Class C, H, and R dealers by emailing, mailing, or faxing a written

request to:

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Michigan Department of State

Inventory Services Section

1301 Sunset

Lansing, MI 48918

Fax: 517-316-1621

Email: [email protected]

a) Please note that there is a 10-pad maximum per year allowed per dealer. Requests

for quantities over the 10-pad maximum will be handled on an individual basis.

Completing the Form. Each form TR-9, Scrap Vehicle Inventory, must contain

the following information:

1) Dealer name and address;

2) Dealer number;

3) Name, address, and dealer license number of the Vehicle Scrap Metal

Processor;

4) Date the vehicles were sent to the Class F Vehicle Scrap Metal Processor;

5) Year, make, VIN, stock number, and color for each vehicle being delivered;

6) Mark SCRAP or JUNK across the face of the title.

NOTE: Form TR-9, Scrap Vehicle Inventory, is not used to assign ownership of vehicles to

dealers other than a Class F Vehicle Scrap Metal Processor. Dealers who crush and

transport vehicles to a vehicle scrap metal processor must acquire ownership by means of

an assigned title or other properly assigned ownership document.

b) Form Distribution. Distribute copies of form TR-9, Scrap Vehicle Inventory, as

follows:

1) The first copy retained by the selling dealer for five years;

2) The second copy is mailed with the titles attached in the order the vehicles

appear on the TR-9 to:

Michigan Department of State

Customer Records Division

Vehicle Records Activity Unit

7064 Crowner Dr.

Lansing, MI 48918

3) The third copy is transported with the load of vehicles to the Class F Vehicle

Scrap Metal Processor.

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SALVAGE VEHICLE DISCLOSURE

R 257.253 – Salvage vehicle disclosure information

Rule 3

1. Before entering into a sales agreement, a dealer who sells a late

model salvage vehicle that has been repaired shall certify to the

buyer in writing that the vehicle was previously distressed.

2. The certification may be written or printed directly on a document, which

evidences the agreement or on a separate document attached to the

agreement.

3. The certification shall read substantially as follows:

The purchaser of this vehicle has been informed by the

seller, before entering into an agreement, that

the vehicle described below was previously wrecked,

destroyed, or damaged to the extent that a previous

owner considered the vehicle uneconomical to repair.

___________________ ________________________________________

(Date) (Signature of Purchaser)

____________________ ________________________________________

(Date) (Signature of Seller)

_____________ ________________ ___________ _________________________

(Make) (Model) (Year) (VIN)

Revised (5/08)

BUYING AND SELLING DISTRESSED VEHICLES

DEALER CLASS

BUY FROM

BUY WHAT

SELL TO

SELL WHAT

STATUTE

B – Used Vehicle

Dealer

Retail

Wholesale

Older model salvage

vehicles

Retail

Wholesale

Older model salvage

vehicles

257.217c(4)

257.78

257.248(5)

C – Used Vehicle

Parts Dealer

Retail

Wholesale B or via

Salvage Vehicle Agent

from/through C, D, G, R

Whole vehicles; Major

component parts; Late

model distressed

vehicles; or Late model

major component parts

Whole vehicles to C, F,

H, R

Late model major

component parts

257.2a

257.78a, 257.217c(4),

257.248(5)

D – Broker

Not able to buy

distressed vehicles in

their name

- - -

Displays or negotiates

vehicle/vehicle part sales

N/A

Not able to sell

distressed vehicles

- - -

Displays or negotiates

vehicle/vehicle part sales

N/A

R 257.181

Rule 1, (c)

257.248(5)

257.248c

E – Distressed

Vehicle Transporter

Retail

Wholesale from

C, F, R

Whole vehicles

Wholesale to C, F, R

Whole vehicles

- - -

Shall not dismantle

vehicles

257.12b

257.248(8)

F – Vehicle Scrap

Metal Processor1

Retail

Wholesale

Any whole vehicle or

vehicle part(s)

Wholesale to F

Any whole vehicle or

vehicle part(s)

257.79b

257.248(5)

G – Vehicle Salvage

Pool

Not able to buy

distressed vehicles

- - -

Only stores and displays

damaged or distressed

vehicles for insurance

companies

N/A

Not able to sell

distressed vehicles

- - -

Release vehicles to

former owner, Salvage

Agent for C, H, R

N/A

257.79a

257.248(5)

257.248c

H – Foreign Salvage

Vehicle Dealer2

Wholesale

Distressed late model

vehicles and salvageable

parts

Wholesale

Distressed late model

vehicles and salvageable

parts

257.17a

257.217c(4)

257.248(8)(h)

257.248b

R – Automotive

Recycler

Retail

Wholesale B or via

Salvage Vehicle Agent

from/through C, D, G, R

Whole vehicles; Major

component parts; Late

model distressed

vehicles; or Late model

major component parts

Whole vehicles to

C, F, H, R

Late model major

component parts

257.2a

257.78a

257.217c(4)

257.248(5)

1 Processes vehicles into scrap metal by shredding, shearing, fragmenting, bailing, or similar means (crushing is not considered a scrap metal process).

Licensed in another state and deals in distressed vehicles.

Revised July 2023

DEALER CLASS

BUY FROM

BUY WHAT

SELL TO

SELL WHAT

STATUTE

W – Wholesaler

Not able to buy

distressed vehicles in

their name

Not able to buy

distressed vehicles

Not able to sell

distressed vehicles

Not able to sell

distressed vehicles

257.79e

Salvage Vehicle

Agent must own or

work for C, H, R

D, G

Late model distressed

vehicles or salvageable

parts

N/A

257.56c

257.78a

257.17a

257.2

257.248e(1)

Insurance Company

acquires ownership

of vehicles through

payment of claim

Policy Holder

Whole vehicles

Former owner or

C, F, H, R

- - -

G only authorized to

dispose of vehicles

Whole vehicles

257.79a

257.217c(2)(a)(ii)

257.217c(2)(a)

257.217c(2)(b)(iii)

257.217c(2)(b)

Persons other than

dealers or Insurance

Companies or owner

Former owner or

Insurance Company

Whole vehicles; Late

model major component

parts

Former owner or

C, F, H, R

Whole vehicles (no more

than 4 vehicles per year

without a dealer license),

Late model major

component parts

257.217c(9)

257.217c(19)

257.217c(20)

257.248

Owner of vehicle

N/A

Retail

B, C, D, E, F, R

Whole vehicles

257.217c(8)

Revised July 2023

MAJOR COMPONENT PARTS RECORD

Date of

Purchase

Description

VIN or Assigned Part

Number

Year

Make

Model

Color

Name & Address

Purchased From

Invoice

Number

Dealer

Number

Date

Sold

Name & Address

Sold to

Invoice

Number