Beware of Salvage Titles: Parts-Only Junk and the Risks Involved

The Expert Podcast

• Main Focus: Avoid vehicles with a "Certificate of Destruction" or "Non-Repairable" designation.

Key Points:

• Cars labeled "Non-Repairable," "Junk Parts Only," or with a "Certificate of Destruction" are meant for parts only and cannot be titled in any state in the U.S.
• These designations permanently cancel the vehicle's VIN number from ever receiving a title.
• Challenges in Exporting: Customs and Border Protection (CBP) typically requires these cars to be dismantled before export, making them difficult to ship out.
• Why Insurance Companies Do This: They apply these designations to prevent cars from being put back on the road due to liability concerns.

Avoid These Cars:

• Don’t consider "Non-Repairable" vehicles as a challenge to fix up and title. Even if you manage repairs, you won’t be able to get a title.
• Be cautious with "No Title, Bill of Sale Only" vehicles, especially from states like Washington. These vehicles could be just as ineligible for titling despite appearing as a potential deal.
• Federal Law: A federal statute prohibits issuing a title for "Non-Repairable" vehicles, so there's no workaround or loophole.

What to Do if You've Already Bought One:

• If you've purchased a car with a "Certificate of Destruction" or "Non-Repairable" status, check out our website for options on how to get the most money back for it.
• It might be possible to sell it back to Copart, depending on whether they should have sold it to you in the first place.

Looking Ahead:

• Over the next few years, expect more vehicles at Copart to come with these designations. Salvage titles will become rare, and the majority will be marked as "Parts Only."
• Always verify that a vehicle has a clean or salvage title before purchasing to avoid the risk of not being able to put it back on the road.