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FAQ Categories / Tax: Salvage vehicles and rebult vehicle inspections

A salvage vehicle (total loss) occurs when an insurance company or any other person pays or makes other monetary settlement to a person when a vehicle is damaged and the damage to the vehicle is greater than or equal to 75 percent of the fair retail value of the vehicle prior to damage as set forth in a current edition of a nationally recognized compilation of retail values, including automated data bases.
No, the application must be received and processed first prior to having an inspection scheduled and completed. You will then have to wait until the inspector contacts you for an inspection.
Inspections are scheduled by the Motor Vehicle Inspector once your application is processed. The inspector will contact you for inspection once the request for inspection has been received.
An inspection is generally scheduled within 1 to 2 weeks once the application has been received.
The inspection fee is $90.00 ($75 for the inspection and $15 for the title issuance fee). The fee should be paid in either certified funds or money order made payable to the Department of Revenue.
Section 32-8-87, Code of Alabama 1975, requires you to have a master dealer regulatory license to apply for a rebuilt inspection. Licensed motor vehicle dealers are required to become designated agents of the Department. Designated agents are required to utilize the department's online title system to generate and submit title application data and required fees.

As owner of the vehicle prior to salvage, in accordance with §32-8-87(k)(3), Code of Ala. 1975, you may apply for rebuilt inspection by submitting the following:
o A completed application for rebuilt inspection
o The current salvage certificate of title
o All bills of sale for component parts replaced
o A copy of your registration receipt evidencing ownership prior to salvage
o $90 inspection fee in certified funds (cashier's check or money order)
o Effective April 1, 2024, paper applications will no longer be accepted. Rebuilt applications must be completed electronically through MyDMV, and we will only accept electronic payments.

The inspector will contact you once the request has been received and coordinate a location for the inspection.
Yes, in accordance with Section 32-8-87(p), Code of Alabama 1975, you may sell a salvage or rebuilt vehicle as long as you provide a disclosure to the buyer in no smaller than 10-point type that, “This vehicle’s title contains the designation salvage or rebuilt.”
No, Alabama law will not allow a salvage title to be issued once a current salvage title already exists. Ownership is transferred using the assignments on the back of the title in addition to a bill of sale.

No, these brands indicate the motor vehicle cannot be rebuilt and are basically only good for selling the parts.

A salvage vehicle cannot be registered or operated on the highways or other public places of this state until a rebuilt title has been issued for the vehicle.

You may apply for a master dealer license electronically by visiting the Alabama Partner Registration available through MyDMV. Upon completion of the application, the required documents must be uploaded in the MV license system.

No, these brands indicate the motor vehicle cannot be rebuilt and are basically only good for selling the parts.
Yes, Section 32-8-87(k), Code of Alabama 1975, requires every salvage vehicle to be restored in this state to its operating condition which existed prior to the event which caused the salvage certificate of title to issue.