What You Need to Buy Salvage Cars

To buy salvage cars, you typically need a government-issued ID, to be at least 18, a way to pay deposits and auction fees, and—depending on your state and where you buy—either a dealer/rebuilder/dismantler license or a licensed broker to bid on your behalf. You’ll also need to arrange towing (salvage vehicles generally can’t be driven), understand your state’s title and rebuilt-inspection rules, budget for repairs and fees, and have a plan for insurance and registration after repairs.

What Counts as a Salvage Car—and Why It Matters

“Salvage” is a title brand issued when an insurer or state determines a vehicle is a total loss or otherwise not economical to repair. Common pathways include collision, flood, hail, theft recovery, or fire. The salvage brand limits how the vehicle can be sold and used until it’s repaired and passes state inspection. Some titles are non-repairable or “certificate of destruction,” meaning the car can’t legally return to the road and is only for parts or scrap.

Core Requirements at a Glance

Before you bid or buy, you should confirm you meet minimum legal, logistical, and financial requirements. The following checklist summarizes the essentials most buyers will need.

• Legal identity and age: A valid government-issued photo ID and minimum age (usually 18+).
• Access method: A qualifying auction account (e.g., Copart, IAAI), a dealer/rebuilder/dismantler license if required in your state, or a licensed broker to place bids for you.
• Payment readiness: Deposit and purchase funds via bank wire/cashier’s check; auctions set deadlines and storage fees.
• Transport: Tow truck or trailer; most salvage cars cannot be driven on public roads until rebuilt and inspected.
• Title knowledge: Understanding of salvage, rebuilt, non-repairable, and flood brands and your state’s path to a rebuilt title.
• Inspection compliance: Receipts for parts and a plan for state rebuilt or anti-theft inspections post-repair.
• Insurance plan: A strategy for storage coverage during repairs and liability/comp coverage after rebuilt status.
• Budget buffer: Funds for fees (auction, broker, taxes), parts, diagnostics, and unexpected repairs.

Ticking these boxes minimizes delays and surprises, especially with tight auction payment windows and strict title-transfer rules.

Where and How to Buy Salvage Cars

Salvage vehicles are sold through several channels, each with different access rules and risk profiles. Understanding your options helps you match your license status and goals with the right marketplace.

• Insurance auctions: Copart and IAAI manage most insurer total-loss vehicles. Many lots or title types require a business license; public buyers may need a broker or be limited to specific “public” categories depending on state rules.
• Public auctions and municipal sales: Some independent auctions and government surplus/impound sales allow the general public to buy salvage-titled units without special licenses.
• Private sellers and recyclers: Individuals, body shops, or dismantlers may sell salvage cars directly, often with more flexible access but less uniform disclosure.
• Dealers and rebuilders: Some licensed rebuilders sell post-repair “rebuilt” vehicles; others sell in-progress salvage projects to the public where permitted.

Insurance auctions offer the widest selection and data (photos, condition reports), but they come with strict rules, fees, and timelines; private or public sales can be simpler but often provide less documentation.

Licensing: Individual vs. Business Access

License needs vary by state and auction. Many salvage and insurance auctions restrict bidding on certain title types to licensed businesses. If you don’t have a license, you can often hire a broker to bid for you, though that adds fees.

Common License Paths (names vary by state)

If you plan to buy regularly or access restricted inventory, you may consider obtaining a relevant business license. Here are typical categories states use.

• Dealer license: For buying and reselling vehicles; often requires a business location, signage, surety bond, and records.
• Rebuilder/Salvage buyer license: For acquiring salvage vehicles to repair and return to road use.
• Dismantler/Recycler license: For buying salvage or non-repairable vehicles for parts and scrap.
• Exporter license/endorsement: For purchasing vehicles intended for export outside the U.S.
• Resale/sales tax permit: Required in many states to buy tax-exempt for resale and to collect/remit sales tax.

The precise license name, eligibility, and application steps (bond amounts, zoning, inspections) differ widely; check your state DMV or dealer licensing board before you apply or bid.

Titles, Inspections, and Getting Back on the Road

What you can do with the vehicle after purchase is dictated by the title brand. Knowing your state’s path from salvage to rebuilt—and which titles can never be registered—is critical.

• Title types: Salvage, Rebuilt (after approved repairs), Non-repairable/Certificate of Destruction (parts only), Flood, Hail, Theft Recovery, or similar brands.
• Paperwork: Original salvage certificate/title, bill of sale, lien releases if any, and a state title application for ownership transfer.
• Rebuilt process: Repairs to manufacturer or state standards, documentation of parts (receipts with VINs for major components), and photos before/after.
• Inspections: State DMV or law enforcement anti-theft and safety inspections; some states require emissions testing after repairs.
• Registration: After passing inspection, apply for a rebuilt title and then register; the rebuilt brand remains on the title permanently in most states.

If the title is non-repairable, the car cannot be registered for road use; it’s limited to dismantling or export where lawful.

Transport and Insurance

Expect to arrange towing immediately after purchase and plan for limited insurance options until the vehicle is rebuilt and inspected.

• Transport: Salvage cars typically must be towed from the auction; storage fees start quickly (often within a few days).
• Temporary permits: Some states issue transport permits, but many prohibit driving salvage vehicles on public roads.
• Insurance during repairs: Comprehensive or garage-keepers/storage policies may be available; standard road liability generally requires a rebuilt title.
• Post-rebuild coverage: Many insurers will cover rebuilt-title cars, though premiums, deductibles, and valuation may differ; shop around.

Line up a transporter and talk to your insurer before you bid so you’re not scrambling after the hammer falls.

Costs, Fees, and Budgeting

Beyond the hammer price, factor in multiple layers of fees and repair costs. Underestimating these is the most common mistake new buyers make.

• Auction fees: Buyer premiums, internet/online fees, gate or loading fees, and documentation fees; these vary by auction and sale price.
• Broker fees: If you use a licensed broker, expect per-vehicle charges plus any deposit requirements.
• Taxes and title: State sales/use tax (unless exempt for resale), title and registration fees, inspection fees.
• Transport and storage: Towing charges and daily storage fees if you miss pickup deadlines.
• Repairs and parts: Bodywork, mechanical, electronics, airbag systems, ADAS calibrations, and alignment.
• Diagnostics: Pre-purchase scanning (if available), post-purchase inspections, and frame measurements.
• Contingency: A buffer (often 20–30% of expected repair cost) for hidden damage.

Building a realistic all-in budget protects your margin whether you’re rebuilding for personal use or resale.

Due Diligence and Risk Management

Because salvage vehicles are sold as-is, your homework before bidding is your best protection against costly surprises.

• VIN history: Run NMVTIS and commercial histories (e.g., CARFAX/AutoCheck) to verify title brands and prior damage.
• Auction photos and reports: Study high-resolution images for frame rails, airbags, suspension geometry, and water lines.
• Condition categories: Understand “runs & drives,” “start,” or “enhanced” designations and their limitations.
• Flood red flags: Corrosion at connectors, silt under carpets, and water lines in trunk or engine bay.
• Parts sourcing: Price airbags, seatbelts, sensors, and ADAS calibrations—often the biggest hidden costs.
• Arbitration limits: Most salvage auctions have little to no post-sale arbitration; assume as-is finality.

A careful pre-bid checklist can turn a risky buy into a manageable project with predictable costs and timelines.

Step-by-Step: Your First Salvage Purchase

Use this practical sequence to move from research to roadworthiness with fewer missteps.

1. Confirm state rules: Check your DMV for salvage/rebuilt laws and whether you need a license or must use a broker.
2. Choose your access: Open accounts with auctions (Copart, IAAI) and/or engage a reputable licensed broker.
3. Set budget and deposit: Plan your all-in cap; place any required deposits and understand payment deadlines.
4. Screen candidates: Pull VIN histories, review photos, price parts and labor, and estimate transport costs.
5. Bid strategically: Respect your ceiling; include fees in your max bid math.
6. Pay and collect: Pay promptly to avoid storage fees; schedule towing in advance.
7. Repair with documentation: Keep receipts and photo evidence for the rebuilt inspection.
8. Inspect and retitle: Complete state inspections, then apply for a rebuilt title and registration.
9. Insure and drive: Shop insurance for rebuilt-title vehicles and complete any required safety/emissions testing.

Following a disciplined process helps ensure compliance and keeps your project on time and on budget.

Key Points on Access and Compliance in 2025

As of 2025, large insurance auctions maintain a mix of public and license-restricted inventory, with public access varying by state and title type. Many states still require a business license (dealer, rebuilder, or dismantler) to bid on most salvage vehicles directly; otherwise, buyers can use licensed brokers—at additional cost—to access restricted lanes. Title brands and rebuilt inspection steps remain state-specific; always verify current requirements on your state DMV or motor vehicle commission website before you bid.

Summary

To buy salvage cars, you need proper identification, a compliant way to access inventory (license or broker), fast payment and towing arrangements, and a clear plan for title, inspection, and insurance. Success hinges on understanding your state’s rules, budgeting for fees and repairs, and doing rigorous pre-bid due diligence. With preparation, salvage purchases can make financial sense for rebuilders, exporters, and informed private buyers alike.

Can a regular person buy a car from Copart?

Register as a Business or an Individual
Individual: You have no professional licenses and buy for yourself. In this case, your vehicle selection will be limited, and you will only be able to purchase vehicles listed in the “No License Required” category.

What do I need to buy salvage cars?

For many states, you could be required to obtain a salvage certificate stating that the vehicle was previously a total loss. If you are unsure about your state’s regulations regarding total loss cars, ask your insurance company or an auto damage adjuster.

Can I drive a salvage title car in MN?

If a salvage vehicle passes a salvage inspection, the title will be branded with the term “PRIOR SALVAGE.” A vehicle with a prior salvage brand may be registered and driven on the roadways just like a regular vehicle.

What do you do when you buy a car with a salvage title?

Go to the dealership, ask to speak with a finance manager, let them know you’ve discovered the title (with proof) is branded and have them unwind the deal. If they refuse, I’d go to my nearest branch and let them know they have funded a loan for an auto with a branded title.