Colorado Law Compass

Find yourself a nice car on craigslist?  Says it has a “salvage title”?  What’s that?  The Colorado Attorney General’s website has some info:

In Colorado, a “salvage vehicle” is any vehicle that is damaged by collision, fire, flood, accident, trespass, or other occurrence, excluding hail damage, to the extent that the cost of repairing the vehicle to a roadworthy condition and for legal operation on the highways exceeds the vehicle’s retail fair market value immediately prior to such damage. In assessing whether a vehicle is a salvage vehicle, the retail fair market value is determined by reference to sources generally accepted within the insurance industry including price guide books, dealer quotations, computerized valuation services, newspaper advertisements, and certified appraisals, taking into account the condition of the vehicle prior to the damage. When assessing the repairs, the assessor shall consider the actual retail cost of the needed parts and the reasonable and customary labor rates for needed labor.

If you sell a motor vehicle that has been rebuilt from salvage you must, prior to transferring such vehicle, prepare a disclosure affidavit stating that the vehicle was rebuilt from salvage. The disclosure affidavit must also contain a statement as to the nature of the damage that resulted in the determination that the vehicle is a salvage vehicle. The words “rebuilt from salvage” must appear in bold print at the top of each such affidavit. That affidavit must be provided to the purchaser and you must obtain the purchaser’s signature clearly stating that the purchaser has received a copy of the disclosure affidavit and has read and understands the provisions contained therein.

You may be guilty of a misdemeanor if you fail to provide this disclosure affidavit. Moreover, any person who purchases a vehicle rebuilt from salvage who was not provided with a copy of this disclosure affidavit and who, subsequent to sale, discovers that the vehicle purchased was rebuilt from salvage shall be entitled to a full and immediate refund of the purchase price from the prior owner.

If you purchase a motor vehicle that has become a salvage vehicle, you are required to apply with the Colorado Motor Vehicle Division for a “salvage certificate of title.” As part of that application you will be required to include disclosure of the type of damage (excluding hail damage) resulting in salvage. In the case of an application for salvage title due to vehicle abandonment at a repair shop, the application must denote that the reason for salvage is “vehicle abandoned at a repair shop”. The reissued certificate of title will then be permanently branded with the designation “REBUILT FROM SALVAGE.” You can contact:

Colorado Division of Motor Vehicles
Motor Vehicle Titles, Room 146
1881 Pierce Street
Lakewood, CO 80214
Phone: (303) 205-5608

photo: http://www.flickr.com/photos/davidclow/ / CC BY-NC-ND 2.0