Now, a quick word about “salvage”, “rebuilt” and “non-repairable or junk”.
A “salvage” motor vehicle has been damaged or is missing a major part causing the cost to repair the vehicle to be higher than the actual cash value of the vehicle. A salvage vehicle cannot be registered or operated on Texas roads.
A “rebuilt” motor vehicle is a vehicle that was previously salvage but as the term implies it has been rebuilt and will pass a safety inspection. A rebuilt vehicle may be retailed to the public and operated on public roads, but the new title will always note the vehicle is “rebuilt”.
“Non-repairable” motor vehicles cannot be operated and have no value other than for parts or scrap. These vehicles will never be titled or registered.
So, how do you sell each of these vehicles?
If you sell a “salvage” vehicle without repairing it, you must post the required notices in the window and have the purchaser sign the salvage disclosure form found here. Also, the PURCHASER will submit the paperwork to the county tax office once they purchase the vehicle. You DO NOT issue a temporary buyer’s tag on the vehicle. A salvage title must be issued in the dealer’s name.
If you sell “rebuilt”, the vehicle must pass a safety inspection and have a rebuilt title. You must post this sign in the window when the vehicle is on your lot. Also, at closing, a separate document must be signed by the customer and retained in the deal jacket. The dealer will issue a temporary buyer’s tag or eTAG and you are required by law to register and title the vehicle for the customer just like a regular retail sale.
Selling “non-repairable” is similar to salvage except non-repairable cannot be rebuilt. There are specific notices and forms required for non-repairable too.
If you elect to buy and sell any of these vehicles make sure you understand the rules, taxes and title brands. There are specific forms you must submit to ensure the vehicles are titled appropriately.
If you have a criminal history and are concerned about your eligibility for a license, you MAY request a criminal history evaluation before applying for a new dealer’s license. This can be done by setting up a user account through the TxDMV website and requesting a criminal history evaluation in the eLICENSING portal. (Note: This step is NOT a requirement but it might be helpful IF you have a criminal history).
By entering this site, you verify you’ve been notified of your rights outlined in the Texas Occupations Code Chapter 53, Subchapter D, as well as the current criminal history guidelines found in the Texas Administrative Code §211.3.