Salvage and Junk Vehicle Best Practice

Through years of input and discussion with members and stakeholders, AAMVA's Vehicle Standing Committee identified inconsistencies across U.S. jurisdictions in the way vehicles are identified and branded as salvage or junk. The broad variances in current jurisdictional laws and rules may create opportunities for unsafe vehicles to be titled, rebuilt, or repaired in jurisdictions with fewer requirements. As a result, these vehicles can go unbranded in accordance with one jurisdiction’s laws and may or may not be properly repaired or rebuilt in accordance with another jurisdiction’s laws. As such, these vehicles may be susceptible to safety risks and fraud. Furthermore, financial repercussions may impact consumers and financial institutions when title brands do not properly get carried forward, are removed, or not honored when a vehicle moves to a new jurisdiction.

In response, AAMVA empowered a working group of jurisdiction members to develop a best practice for the titling and branding of damaged, wrecked, and totaled vehicles in an effort to support and encourage consistency in this process, thereby deterring and impeding consumer fraud and deceptive practices while enhancing roadway safety. Consistent titling and branding of damaged, wrecked, and total loss vehicles can lead to a reduced risk for consumers. Vehicle purchasers may encounter fewer unexpected safety or fraud risks when jurisdictions have implemented the standards for consistent titling and branding of these vehicles outlined in this best practice.
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