You Bought a Scrap Title, Junk or Parts-Only Title: What to Do Next

You’re shopping for a used car at a reasonable price, and you keep hitting a wall: everything on the open market is overpriced, and everything in your price range is well below what you were looking for in terms of quality, brand, or overall condition. Now what? There is another option—one that is gaining in popularity as many others find themselves in this same scenario: buying a vehicle with a scrap title and making the needed repairs after the fact. But it’s not always an easy road. What feels like a win can turn into a nightmare without a solid understanding of vehicle title types, the overall process, and your options. Here are some tips to help make your buying experience a good one.

Title Types and Limitations: Scrap and Salvage Titles vs Junk and Parts-Only Titles
To successfully navigate these options, you must first understand what you are buying. A scrap or salvage title indicates the car has been totaled due to some kind of damage, but that it can be rebuilt and ultimately be deemed road-worthy again. Many totaled vehicles can be repaired and put back on the road. The designation of “totaled” just means that the cost to repair is outside the insurance company’s acceptable ratio to the vehicle’s present-day value. With rising costs to repair and to buy parts, it’s taking less and less damage to deem a car as totaled.

However, with a parts-only or junk title, the damage is so severe that the vehicle itself can never be re-titled. It must instead be used for spare parts that were not damaged. It’s important to know the difference so you don’t purchase a car thinking it can be repaired, only to later find out it’s only good for parts.

You can run the vehicle’s VIN through a database to pull a history report. If you are purchasing the car through an auction company like Copart or IAA, they will have information regarding the type and extent of the damage. Also, it’s important to note that auction companies will label vehicles that are missing their original tiles as “blue light auction” vehicles. There is a process around obtaining the title after the fact. If the title still cannot be located within 30 days, cartitles.com can help you with a court-ordered title to officially get the vehicle into your name. This is key as you move through the process of getting the repaired vehicle properly documented so you can legally drive it.

Repair and Rebuild with Salvage or Scrap Titles
Once you have purchased a damaged vehicle, you have two options. If you purchased a salvage or scrap title, you can move forward with the needed repairs and ultimately re-title the vehicle with a rebuilt title. To do this, you will need to have the vehicle towed (even if it is “driveable,” you cannot legally drive it at this stage) to a mechanic for a full estimate of what is needed. Auction sites should give you a list of the needed repairs as well, so you have an idea of what is needed before you purchase. However, you will still need your own inspection. Documentation is critical throughout the process, including photos of the affected areas, a description of the work being done, and all required local and state inspections after the repairs are complete.

Sell for Parts with Parts-Only or Junk Titles
If you have purchased an irreparable vehicle, then you will need to pursue option two, which is to salvage what you can and sell off the parts individually. Anything that was not damaged can be sold though private sales, or websites like Craigslist or Facebook Marketplace. You can also use these salvage parts to repair your scrap title. If you don’t want to deal with the hassle of selling parts individually, you can also sell the entire vehicle to a scrapper or junkyard. They will provide a bill of sale and handle disposal, often salvaging what they can and selling those parts directly. However, you will still need the car title to be able to sell the vehicle; if you do not have the title, then you will need to get a court-ordered title in your name.

Weighing the Pros and Cons
The benefit to buying a scrap or salvage title is that you are getting a vehicle for far less than a comparable vehicle with a clean title. Particularly in cases of less severe damage, and if you can do some of the repair work on your own, this translates to huge savings. The downside for this option is that it will take longer to get the car repaired and re-titled, and that because of the rebuilt title, it will always be worth less than a comparable vehicle with a clear title.

Likewise, if you purchase a junk or parts-only title, you need to be aware of the heavy limitations around what you can do with it. If you want to get into the salvage business and sell off the parts, they will be worth more individually than what you spend on the initial purchase. But there is a lot of time involved—not to mention the hassle of finding buyers for those parts. By going into the process fully aware of the risks and rewards, you can make decisions that will work for you.

Schedule Consultation