How To Get a Rebuilt Title in Delaware
August 28, 2023
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In Delaware, a rebuilt title is issued to vehicles that, after being declared a total loss by an insurance company, have been repaired and restored to a drivable condition.
This title is necessary for legally driving or selling the vehicle.
Whether you're looking to rebuild a totaled car for personal use or resale, navigating the process to obtain a rebuilt title is crucial.
The journey begins with securing a salvage title, followed by applying for a Certificate of Title as the final step.
This article delves into the specifics of how to obtain a rebuilt title in Delaware, offering a comprehensive guide to each required step and procedure.
Table of Contents
- Scrap Value vs. Salvage Value
- What Are the Main Documents for Acquiring a Car Title in Delaware?
- How Long Does It Take To Get a Rebuilt Title in Delaware?
- How To Procure a Salvage Title in Delaware
- Inspection for Salvage Cars in Delaware
- How To Get a Rebuilt Title in Delaware
- Why It's Important To Get a Rebuilt Title in Delaware
- Best Car Deals by Category
- Frequently Asked Questions
Scrap Value vs. Salvage Value
Scrap value and salvage value are related terms. Salvage value is the amount likely obtained from a damaged item or its components.
On the other hand, scrap value is a type of salvage value representing the amount that would likely be obtained for a property being dismantled to obtain materials.
Additionally, supplementary charges for services such as lien recordings or expedited processing may be levied.
You must consult the official website of the Delaware DMV or directly contact their office to obtain the most up-to-date fee information.
What Are the Main Documents for Acquiring a Car Title in Delaware?
The typical documentation required to obtain a car title in Delaware includes the following:
- Proof of ownership, such as the appropriately assigned previous title or a Manufacturer's Statement of Origin (MSO).
- A fully executed Application for Certificate of Title/Registration.
- Verification of identification, such as a valid driver's license or ID card.
- Substantiation of insurance coverage.
- Payment of the requisite title fees and any other applicable charges.
How Long Does It Take To Get a Rebuilt Title in Delaware?
The timeline for completing the process is estimated to be around one month, with the understanding that this duration depends on factors such as the length of the repair work and the promptness of scheduling an inspection by the Auto Theft Unit.
However, it takes approximately two to three weeks for the title to be processed and mailed to the registered owner.
The processing duration can be influenced by the volume of applications and any additional verifications necessitated.
How To Procure a Salvage Title in Delaware
To acquire a salvage certificate in Delaware, vehicle owners must undertake specific procedures and adhere to multiple steps.
You must visit the Delaware Division of Motor Vehicles (DMV) office and provide the following documents/information:
- Perform an odometer disclosure on the reverse side of the title certificate.
- Official letter affirming the vehicle's total loss insurance settlement from the insurance company
- Surrender the Delaware vehicle license plates when requesting the title.
- Remit payment for the applicable fee of $35.00.
Always remember that the insurance company's letter must feature the signature of the insurance agent, the owner's name, the date of loss, the model, make, and year of the automobile, along with the vehicle identification number (VIN).
Once your application is satisfactory, you will receive a Salvage Certificate by mail. Your license plate will be retained if the vehicle's registration is still valid.
It is important to note that the salvage certificate must be issued in your name, regardless of whether you plan to sell the car through a dealer or as an individual.
Inspection for Salvage Cars in Delaware
As part of the requirements for getting a rebuilt title in Delaware, applicants must undergo a thorough vehicle inspection for their motor vehicles.
This inspection takes place at the Delaware State Police Auto Theft Unit and enables vehicle owners to title and register their salvage vehicles legally.
To begin salvaging a vehicle, the owner must possess a salvage car title in their name and provide supporting documentation, such as a bill of sale confirming the total loss settlement.
Before proceeding with any repairs, the owner must take color photographs of the vehicle from all sides and diligently document the repair process by retaining receipts for all parts used.
These receipts must contain the date of purchase, addresses, and zip codes of both the buyer and the seller.
Additionally, when undergoing the car salvage inspection at the Delaware State Police Auto Theft Unit, vehicle owners must provide proof of identity.
How To Get a Rebuilt Title in Delaware
Once you have successfully acquired the salvage title and undergone inspection, you can start applying for a rebuilt title in Delaware.
Gather the necessary the following documents for the title application:
- MV214 Application for Title
- Proof of insurance for the rebuilt vehicle
- Salvage certificate (previously obtained)
- Vehicle Inspection Report from the official inspection
Then, visit your nearest DMV office and bring all the required documents mentioned above. Present them to the DMV representative and pay the titling fee, which is typically $35.
The DMV will process your application and give you a rebuilt title for your vehicle if everything is in order.
Why It's Important To Get a Rebuilt Title in Delaware
Acquiring a rebuilt title is essential unless you intend to scrap the car. Selling a car with a salvage title proves exceedingly challenging, as potential buyers tend to steer clear due to the impracticality associated with such vehicles.
The market for interested buyers is notably limited, and even if the car is still operable, once deemed totaled, it becomes ineligible for legal registration and operation.
The process of obtaining a rebuilt title is undoubtedly intricate; however, the outcome has undeniable advantages, regardless of your intentions with the reconstructed vehicle.
With documented proof of the car's safety and roadworthiness, you can legally register and drive it.
A rebuilt title opens doors to a broader array of potential car buyers who may be eager to take ownership of your rebuilt vehicle.
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Frequently Asked Questions
What is the salvage value of a car?
The salvage value of a vehicle is the amount it would fetch if the insurance company were to sell it to a salvage yard for its parts and frame. The insurance company fixes the vehicle's actual cash value (ACV) as if you would not repurchase it and subtracts a percentage from the salvage value.
What is another term for salvage value?
The salvage value is also known as the residual value. It refers to the remaining value of an asset after it has been fully depreciated.
Can you insure a rebuilt title in Delaware?
Once the car is repaired, inspected, and issued a rebuilt title, you can obtain insurance for a car with a salvage title. But, not that rebuilt cars seldom get good coverage as most insurance companies are wary of them.
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