New York Salvage Title Law

An automobile title indicates ownership of a specific vehicle and stays with the vehicle for the duration of its life. In most cases a car seller will provide you with a title or the company you finance the vehicle through will hold it until your loan is paid off. Each state also has its own laws for salvage titles, which motor vehicle departments issue for vehicles that have been damaged and rebuilt.

Purpose

The primary purpose of salvage titles in New York is to inform vehicle buyers of where their cars came from and to prevent theft or cases of uncertain ownership due to missing titles. Automobile titles serve as proof of ownership for future sales and registrations, which is why every vehicle in the state needs a title of some sort. The New York State Department of Motor Vehicles officially issues salvage certificates with its MV-907A form.

Eligibility

In New York, a car owner may be able to receive a salvage title for one of several reasons. Salvage titles are available for cars that owners have turned over to their insurance companies. Often this is due to damage. New York salvage title law states that a vehicle can receive a salvage title if it has damage that exceeds 75 percent of its value before the damage occurred. New York is also among the states to issue salvage titles for stolen vehicles.

Application

The New York State Department of Motor Vehicles' form MV-899 is the Application for Salvage Vehicle Examination. Car owners who fill out this form must include information about the vehicle's original source, its make and model and the nature of the damage. For example, owners can check boxes for flood damage, collision or recovered after theft. The application also asks what components or portions of the vehicle the owner replaced. Finally, the owner must submit proof of ownership, such as an auction receipt, with the application.

Inspection

New York car owners who apply for salvage titles must also submit their vehicles for in-person inspections. These inspections can take place at one of several inspection sites in cities throughout the state. The inspection focuses on ensuring that the owner has prepared the car to drive safely on public roads. However, it is not the same as New York's standard safety inspection, which all drivers must submit their cars to annually. A car that passes a salvage inspection, which requires a $150 inspection fee, plus a $50 application fee as of publication, will receive a salvage certificate and be legally eligible for a registration.