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Welcome To Certificate of Destruction

Certificate of Destruction: When the car is fixed can I drive it again? We might have a solution!

Certificate of Destruction – Title Service

Dealers and in some cases individuals that own a vehicle with a certificate of destruction (or Scrap, Junk Certificate, Non-Repairable title, or even Bill of Sale) may find utility to instead hold a salvage or rebuilt branded title. The title can never be a “clear title again” and disclosures need to be made to all future owners of the vehicle’s history.

Several states permit licensed re-builders to process a certificate of destruction back into a salvage title and then into a rebuilt title which will again allow the owner of the vehicle to register the vehicle making it street legal.

A vehicle issued a certificate of destruction (or similar junk title) in a state will never being able to be retitled in the state that originally issued the irreparable title.

The Process Time

4 - 6 weeks.

Required Documents

1. Pictures of the vehicles before any repairs are/were preformed;
2. A duplicate of the bill of sale from where the vehicle was purchased;
3. A copy of the original auction receipt that captures the essence of the damage type (flood, collision, etc.).

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Canadian Non-Repairable Title

Similar to a Certificate of Destruction, these are the only two states that we can convert a Bill of Sale to a Salvage / Rebuilt title. The process is similar to the process used for a Certificate of Destruction and Non-reparable title.

Fee: $1000

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Bill of Sales - Alaska & Washington State

Similar to a Certificate of Destruction, these are the only two states that we can convert a Bill of Sale to a Salvage / Rebuilt title. The process is similar to the process used for a Certificate of Destruction and Non-reparable title.

Fee: $900

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Certificate of Destruction - Title Service

Generally a consultation is required before transferring the title to a salvage title (title assignment documents). In a few minutes we can best determine which option is best for your circumstance, as well as determining if a new title is possible.

Fee: $800

About Us

Certificate of Destruction – What is it?

A Certificate of Destruction (CoD) is a legal document in place of a car title. The purpose of this document is to transfer title of the vehicle so that the vehicle can be sold for scrap, parts, exported, or rebuilt with a branded title in states which allow for this process.

State Title Type

State Title Type
Alaska Bill of Sales
Arizona Non-Repairable
California Non-Repairable
Colorado Junk
Florida Certificate of Destruction
Georgia Bill of Sale
Illinois Junk
Iowa Junk Certificate
Kansas Non-Repairable
Kentucky Bill of Sale
Louisiana Certificate of Destruction
Maryland Non-Repairable
Michigan Scrap
Missouri Junk
New Mexico Non-Repairable
Nevada Non-repairable
Oklahoma Junk
Ohio Bill of Sale
Ontario (Canada) Non-Repairable
Pennsylvania Non-Repairable
Texas Non-Repairable
Tennessee Non-Repairable
Utah Non-Repairable
Virginia* Non-Repairable
Washington Bill of Sale
West Virginia Non-Repairable Certificate

Bill of Sale

There are two states that do not issue salvage titles, they are Alaska and Washington State. Instead these states issue a bill of sale. A Bill of Sales has a similar rebuild process to a Certificate of Destruction or Non-Repairable Title. Once the vehicle has been repaired and inspected the care you can go through the process to get a rebuilt title in either of these two states. 

Other States with similar processes are Ohio, Georgia and Kentucky. These states require that the vehicle title be surrendered to the State when a vehicle has experienced damages that cost more than 75% of the vehicles value. A Bill of Sales is then issued to convey ownership. This process follows the normal salvage title process.

How to value a Rebuild Titled car and what factors change the vehicles value?

Mileage

High mileage on a rebuilt vehicle creates in our experience a “double whammy” on the value of the vehicle generating multiplicative effect on the loss of value. Keep that in mind if you are purchasing a high mileage rebuilt vehicle.

Vehicle Price Range

For a vehicle that is priced under $5,000 the rebuilt title has less impact on the price of the vehicle. Vehicles in this price range are valued based upon their overall utility because cars in that price range are most likely being purchased by their final user. This type of buyer is more interested in condition and reliability than things that will impede resale.

Type of Vehicle

It has been our experience that Truck buyers care less about a vehicle with a branded title than car customers. This is likely because truck buyers tend to be more mechanically inclined and have faith in their ability to assess the quality of the repairs preformed on the vehicle.

Make of the Vehicle

Generally vehicles that are “hotter” in the market place require less of a discount as a percentage off their retail value. This is because the lower price often times allows the buyer to obtain a particular make or model of the vehicle in which they would otherwise not be able to afford.

Options Packages

The reality is the used car buyers love options packages. Cars with leather, sunroof, sports packages, all-wheel drive, and navigation are more appealing to buyers of salvage vehicles especially when they are pricing them against base model and older units in their price point peer group.

Auction Buyers

Vehicles for sales at National Auto Auctions have their highest value when they are being sold by an insurance company. This is because the vehicles have been unaltered from their original condition. Vehicles purchased at auction from non-insurance companies or “flippers” often times were not repairable and therefore sent back to auction.

Location

The locations based upon our ten years of experience as a licensed re-builder is that buyers should be extra mindful of purchasing vehicles in port cities. This is because sellers with a bad vehicle know that cars in port cities will be headed outside of the United States and therefore recourse on the transaction is unlikely. Port cities raw vehicle volume is often times 3-4x that of an auction at a normal city. This attracts additional bidders which increases the likelihood that the vehicle can be successfully offloaded. Miami, FL, Houston TX, Newburgh NY, and Los Angeles are examples of cities where a buyer should be extra careful with their purchases.

Key Tells

Vehicles that probably should be avoided are those with new body parts such as hoods, bumper covers and fenders where none of the repairs were completed to the underlying vehicle structure. This is a strong indication of frame damage that is causing the seller to dump the vehicle at auction. Also while inspecting the vehicle make sure to check the functionality of both engine and transmission as sometimes a vehicle will be brought up to the ride and drive condition but not have mechanical parts that are functional.

Vehicle Titles

Legal form of ownership in the United States for a vehicle is the Title. When an individual purchases a vehicle the title is transferred via completing information on the title by the buyer and seller. This transaction transfers ownership of the vehicle. The title is then taken to the local Department of Motor Vehicles (DMV) and the transfer of the vehicle is recorded by the state in which the new buyer is located. In certain states an assignment is used to help facilitate this process because a title is not immediately issued by these states. Assignments can only be used by licensed auto dealers in that state. Titles are issued and managed by the States so the laws and regulations regarding titles vary depending up the state in which the buyer resides.

Title Branding

In order for states to insure disclosure of a vehicles past history a branding scheme is used to identify damage, exposure or previous use that the state feels compelled to warn a future buyer in advance of purchase. Brands can warn buyers of things like sever body damage, theft, flood, previous taxi or ambulance use, or a manufacturer wishing to void the warranty on a particular test vehicle. Once a brand has been placed on a vehicle it can never be removed without going through a legal process that is required by the brand issuing state. In some cases the brand can be so severe that the vehicle is not permitted to be registered in that state again. The typical brands are:

Clear

A clear title refers to a title where no other party has an ownership interest in the vehicle. Therefore the vehicle has no Liens upon it. A car with a clear title can be bought and sold without providing proof from a financial institution that a previous loan has been paid off. Most states have a 7 year lien policy meaning if the lien filing date is more than 7 years old then the title can be transferred without proof of the lien being paid off. This makes sense as rarely is financing for a vehicle longer than this duration of time.

Clean (no-brand applied)

A clean title is synonymous with no issues or branding on the title. Vehicles that have been in minor accidents in which the cost to repair the vehicle was significantly less than the value of the vehicle prior to the damage maintain their clean titles. Approximately 90% of the cars on the road in the US fall into this category. When people in the auto industry refers to a “clean” title this is in reference to a title that does not have any brands placed on the title. When someone refers to a “non-clean” title this reference is to a title that has brands on it.

Rebuilt

This is a brand used to identify vehicles that were salvaged by an insurance company and then repaired and inspected. All States have laws that require a State Inspection of the vehicle in advance of the issuance of a rebuilt title. The rebuilt title will also lower the value of the vehicle as it is common for a rebuilt titled vehicle to sell for between 65-75% of the normal NADA book value. Rebuilt branded vehicles can be driven, registered, insured and financed just like a clean titled vehicle.

Salvage

The Salvage brand is generally given to vehicles that have experienced damage that will cost 75% or more of the car’s value to repair. Salvage titles cannot be registered and therefore do not meet the requirements needed to be permitted to operate the vehicles on public roads. Additionally these vehicles are not eligible for traditional bank financing and cannot be insured for passenger travel. These vehicles can be repaired inspected and put back into service with a rebuilt brand. In thirty of the fifty States this is the most restrictive branding of a title. Exception: The State of South Carolina will allow someone to drive and insure a salvage title car.

Irreparable / Bill of Sale / Junk Title / Scrap Title

There are twenty states that provide these types of brand/title to prevent vehicles from being retitled in their state. The most common uses of these vehicles is to be disassembled for their parts or exported to other countries. There are a few states that will permit a licensed re-builder to process this type of title branding into a salvage branded title. These vehicles may then be repaired and issued a rebuilt title and then retitled with a salvage title which will show the past damage to the vehicle. However, the vehicle will never be able to be titled back in the state that originally placed the Irreparable brand on the vehicle title.