How to Sell a Salvage Car in Indiana

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Table of Contents

What Is an Indiana Salvaged Car?

The Indiana Bureau of Motor Vehicles (IN BMV) defines a salvaged car as one that was built in the last 7 model years and any of the following that apply:

Your auto insurance provider determines it will cost more to repair the vehicle than it’s worth (fair market value)
The cost to repair the vehicle’s damages exceeds 70% of what the car was worth before the accident, and the vehicle is owned by a company that insures its own vehicles or an individual who received the vehicle after the accident that caused damages.
The vehicle is flood-damaged, meaning any of the following:
- Water reached above the door sill
- Water entered the passenger area or trunk compartment
- Any electrical, mechanical, or computerized component that was exposed to water

If you’re unable to determine whether you have a salvaged vehicle, call the IN BMV for clarification at (888) 692-6841.

What Is a Total Loss Claim in Indiana?

Once your car has been deemed a salvage, you can assign ownership to your auto insurance provider or retain the ownership of the vehicle. Let’s explore both options.

Assigning Ownership to Your Auto Insurance Provider

When you assign ownership of your vehicle to your auto insurance provider, this is known as a full settlement. In this type of total loss claim, your auto insurance company takes responsibility for the vehicle and pays you for the damages. Your auto insurance company will also apply for the salvage car title, and they will advise you on how to handle any lien satisfaction requirements.

Accepting a Partial Settlement From Your Auto Insurance Provider

When you accept a partial settlement from your auto insurance provider, you can keep your vehicle. In this scenario, you are required to apply for your car’s salvage title. Once you apply for the salvage title, you can sell the vehicle or repair the vehicle.

Indiana Salvage Title Eligibility Requirements

Before applying for an IN BMV salvage title, the vehicle must meet specific criteria to be eligible to obtain a salvage certificate. The most important requirement for a salvage title is the age of the car. As the car’s owner, you are required to get an Indiana salvage certificate if your vehicle was built within the last 7 model years.

What is the Difference Between a Car’s Actual Cash Value and Its Replacement Cost?

A car’s actual cash value ACV) and its replacement cost are two ways you can calculate your car’s value when it’s been deemed a total loss. The ACV is what your car is worth based on its age and condition. Don’t forget to factor in depreciation. A car’s replacement cost is the amount of money it would cost to replace your vehicle with a brand new one of the same make and model.

Can You Sell a Salvage Car in Indiana?

Sure! You can sell your salvage car in Indiana! Make sure you have the car’s title. Even if you’re selling your salvage car to a junkyard, you’ll need the car’s title. If you no longer have the car’s title, you must apply for an Indiana duplicate car title (Form 205).

Don’t Get Caught Up in Salvage Title Fraud

Salvage title fraud is a lot more common than you may think. You can get caught up in salvage title fraud by failing to disclose your car’s current condition, such as the car’s salvage title. Any nondisclosure that could potentially affect the sale of your vehicle can be considered fraud. To avoid salvage title fraud, ensure you disclose that you’re selling a car that has a salvage title.

What Should Be Included In the Bill of Sale to Sell My Salvage Vehicle?

In Indiana, you need to make sure you include the following information:

The buyer’s name
A description of the vehicle (include the vehicle’s year, make, and model)
Vehicle Identification Number (VIN)
Seller’s signature and address

Although the vehicle is not required to be notarized, it must include a physical inspection of the vehicle. A bill of sale can be used to determine the date of sale or the purchase price of the vehicle when the vehicle’s certificate does not have this information.

Keep in mind that a bill of sale can’t be used to override information that’s on the car’s title. For example, if the car’s title has a specific sale date or purchase price that is different from the bill of sale, the information on the car’s title must be used.

Does Indiana Have Salvage Vehicle Restrictions?

Of course! While owning a salvage vehicle is not illegal in Indiana, it is illegal however, to operate a salvage-branded vehicle on roads and highways. If you want to drive your salvage-branded vehicle again, you’ll need to repair the car and have it inspected. If it passes the inspection, you can obtain an Indiana rebuilt car title and hit the road!

Can You Sell a Salvage Car in Indiana Without Its Title?

You will need the car’s title to sell the car, including scrapping or junking the car. If you no longer have the car’s title, you’ll need to apply for a duplicate car title by completing an Application for Certificate of Title (Form 205). You can receive your Indiana duplicate car title by mail, using your MyBMV account, at an IN BMV branch, using a BMV connect kiosk, or at a full or partial IN BMV service provider location.

Do I Need My Salvage Car’s Registration Card to Sell It?

You usually don’t need the car’s registration card to sell it. As long as you have the car’s title, you can sell your salvaged vehicle.

How Do I Get a Salvage Title for My Car in Indiana?

You are required to apply for an Indiana salvage car title if your vehicle was built within the last 7 model years. To apply for an Indiana salvage car title, the IN BMV requires you to submit the following documents:

A completed salvage motor vehicle packet, which includes the following:
- Salvage vehicle title application checklist
- Application for Certificate of Title for a Vehicle (Form 205)
- Salvage Title Affidavit (Form 49891)
Your vehicle’s Certificate of Title (if a different state issued your car’s title, you must also include a completed Physical Inspection of a Vehicle or Watercraft (Form 39530).
Proof of the date of loss from your auto insurance provider
- If you’re retaining ownership of your vehicle, you must submit a completed Certificate of Gross Retail or Use Tax Exemption (Form 4481)
- If your auto insurance provider is keeping the vehicle, you must provide payment for the 7% sales tax or provide a Certificate of Gross Retail or Use Tax Paid (Form 48842)
Payment for all applicable fees (there are payment options and instructions included in the salvage motor vehicle packet):
- Salvage title application fee: $4 (an additional $25 is required if you choose the speed/rush title option)
- Administrative penalty: $10 (only required if you do NOT apply for a salvage title within 45 days of reaching a settlement with your auto insurance company or purchasing the salvaged vehicle)

You must mail all required documentation and fees to the IN BMV at the following address:

Indiana Bureau of Motor Vehicles
Central Office Title Processing
100 North Senate Avenue
Room N411
Indianapolis, IN 46204

If you have questions or concerns about obtaining your salvage car title/application, call the IN BMV at (888) 692-6841 for assistance.

Salvage Car Inspections in Indiana

You may be required to have your vehicle inspected every 2 years before renewing its registration. You must have your vehicle inspected if it is registered in Lake or Porter counties and the following applies:

The vehicle was manufactured after 1975
The vehicle does not exceed 9,000 lbs.

Your vehicle must be tested according to the year it was manufactured. Even-numbered model-year vehicles will be tested every even-numbered calendar year. Odd-numbered model-year vehicles will be tested in odd-numbered years.

Indiana Vehicle Inspection Exemptions

The following vehicles are exempt from Indiana emissions testing:

Any vehicle that is NOT registered in Lake or Porter County
Vehicles that are 4 model years old and newer
Vehicles that weigh more than 9,000 lbs.
Vehicles that are powered by electricity or diesel
Vehicles that are model year 1975 and older
Motorcycles
Recreational vehicles
Ceremonial vehicles
Kit cars or dune buggies (these vehicles must meet the “specialty exemption” criteria
Show cars (these vehicles must meet the “show car exemption” criteria
Construction equipment used off-highway
Farm equipment (must be registered for farm use ONLY)

Completing an Indiana Vehicle Inspection

When your vehicle is ready, you’ll need to complete an Indiana vehicle inspection. Check with a Clean Air Car Check Station using your current vehicle registration or renewal application. This test is free. If your vehicle passes this inspection, you will receive a Vehicle Inspection Report (VIR) to use when you register or renew your vehicle’s registration. The VIR outlines the steps you must take if your vehicle fails inspection.

Out-of-State Extensions

If your vehicle will be out of state at the time your IN vehicle renewal is due, you may want to consider renewing the vehicle’s registration early and have the vehicle inspected before you go out of town. Your vehicle can be inspected as soon as October of the year before the scheduled renewal date.

If these early renewal terms are not feasible, you may be eligible for an out-of-state extension if you’re located at least 300 miles from an IN inspection station. These inspection extensions apply to students who are out of state, military members, and for business purposes. You can apply for an out-of-state extension online or by mail.

You’ll need to complete an Application for Out-of-State Extension and Out-of-Area Vehicle form (if applicable). The cost of an out-of-state extension is $40. If you are applying online, you can choose rush processing for an additional $10. After you return to Indiana, you are required to bring your vehicle for an emissions test.

What Happens If My Vehicle Fails the Indiana Vehicle Inspection or Was Rejected?

If your vehicle fails the IN vehicle inspection/emissions check, the vehicle inspector will give you a Vehicle Inspection Report that details the reason your vehicle failed or was rejected. You will also receive information regarding the steps you need to take to have your vehicle repaired and retested.

If your vehicle registration expires before you can have your vehicle repaired and retested, you can apply for a temporary permit, which is valid for 30 days. For more information regarding applying for temporary permits in Indiana, contact the Clean Air Car Check at (888) 240-1684 or (219) 661-8269.

Indiana Emissions Test Waivers

If your vehicle fails the emissions test after it’s been repaired, your vehicle may require more repairs. Under specific circumstances, an emissions test waiver may be granted, allowing you to renew or receive your car’s registration.

Be advised that only 1 waiver will be granted over the lifetime of your vehicle. The next time your vehicle is scheduled to be tested, it must pass. You can apply for a waiver if all of the following applies:

Your vehicle meets all of the qualifications for a waiver
All emissions control equipment is intact and visually operational
Repairs made to your vehicle are connected to the emissions problems that caused your vehicle to fail the test
Vehicles that were manufactured between 1976 and 1980, and at least $75 has been spent on emission-related repairs
For vehicles manufactured between 1981 and 1995, you spent at least $300 on emissions repairs completed by an Indiana Certified Emissions Repair Facility
For vehicles that are 1996 and newer, you spent at least $450 on repairs that were performed by an Indiana Certified Emissions Repair Facility

Make sure you bring all repair receipts to the testing facility.

What Is the Process for Registering a Salvaged Car in Indiana?

You can’t register a vehicle that has a salvage title in Indiana. You will need to repair your vehicle and have it inspected. Follow the steps above to ensure you are following the correct steps. Once your vehicle passes inspection, you can register your vehicle and apply for a rebuilt car title.

Indiana Vehicle Registration Fees

There are different fees you are required to pay when you register your vehicle in Indiana. You can check the Indiana vehicle registration fee chart to determine how much you must pay to register your vehicle in Indiana.

If My Vehicle Has a Salvage Title, Does This Mean I Will Automatically Receive a Rebuilt Car Title?

Salvage and rebuilt titles are two different title types. Your vehicle has a salvage title because your auto insurance provider determined your vehicle sustained at least 70% of damage, and will cost more to repair your car than the car is worth. You can ONLY receive a rebuilt car title in Indiana if your vehicle is repaired and passes inspection.

Does a Salvage Title Mean I Have a Junk Car?

No. Having a car that has a salvage title does not mean your car is junk. Salvage cars still have value. However, if you choose to sell your salvage car to a junkyard, you can do so. Cars that have a salvage title can be repaired and deemed streetworthy. If your car has a junk title, the only option you have is to sell it to a scrapyard or junkyard.

Who Buys Salvage Cars Near Me in Indiana?

There are different salvage yards in Indiana. We recommend choosing a salvage yard that is local or close to you. Here are a handful of salvage yards in Indiana.

Alexandria Parts & Salvage, LLC
206 S. Central Ave.
(765) 724-4400
Tuesday – Friday (9 AM – 4 PM)
Saturday (9 AM – 3 PM)
Sunday (Closed)

Mecca Auto Salvage & Recycling, Inc.
4491 W. Mecca Rd.
(765) 569-6520
Monday – Friday (8 AM – 5 PM)
Saturday (8 AM – 1 PM)
Sunday (Closed)

J B’s Salvage, Inc.
1803 W. Fountain Dr.
Bloomington, IN 47404
(812) 332-0606
Monday – Friday (8 AM – 5 PM)
Saturday (8 AM – 12 PM)
Sunday (Closed)

Pull-A-Part
2505 Producers Lane
Indianapolis, IN 46218
(317) 542-7750
Sunday – Thursday (9 AM – 4:30 PM)
Friday and Saturday (8 AM – 4:30 PM)

How Long Will It Take Me to Get Auto Insurance for My Salvage Car in Indiana?

Like trying to register a salvage vehicle, you won’t be able to obtain an auto insurance policy for your salvage car. You’ll still need to repair your vehicle and it has to pass inspection before you can obtain register it, and then obtain a rebuilt car title to obtain auto insurance.

Can I Salvage My Car Without Its Title In Indiana?

Unfortunately, no. You won’t be able to salvage your vehicle without the car’s title. Whether you choose to sell your car to a salvage yard or junkyard, you’ll be asked for the car’s title. If you’ve misplaced the car’s title, no worries. You can apply for an Indiana duplicate car title by completing an application for a duplicate car title (Form 205).

What Options Do I Have for Selling My Salvaged Vehicle?

The most common options you have for selling a salvage vehicle in Indiana are as follows:

Private sale
Salvage yard or junkyard
Selling for parts
Selling as-is

Private Sale

A private sale occurs between two individuals and not a business. In a private sale, you’ll let potential buyers know that your vehicle is for sale using a car-selling platform, such as Craigslist or a similar platform. Make sure you have the required documents, such as the car’s title before you list your vehicle for sale.

Salvage Yard or Junkyard

You can also sell your vehicle to a salvage yard or junkyard. Remember that the car’s title is required in this scenario. When you sell your salvage vehicle to a salvage yard or junkyard, you’ll need to schedule a date and time for pickup. In most situations, you will receive your money on the spot or no more than 72 hours after your vehicle is picked up.

Selling for Parts

Selling your salvage vehicle for parts is a great way to get the most money for your car. If you choose to sell your car for parts, you or a mechanic will remove the valuable, salvageable parts from the car and sell them individually.

Selling As-Is

Selling your car as-is, is the perfect selling method if you don’t want to put in the time, effort, and money to repair your car and complete the required inspection to obtain a rebuilt car title. When you sell your car as-is, you’re selling the car in its current condition, and it’s up to the car’s new owner to repair it, have it inspected, and re-title the vehicle.

What Are the Difficulties of Selling a Salvage-Branded Vehicle in Indiana?

Selling a salvage vehicle is different from selling a vehicle that has a clean title. When you’re selling a salvage car, you’ll be required to take a series of steps to ensure your vehicle is safe to operate on roads and highways. If your vehicle fails, you’ll need to repeat the steps and possibly pay additional fees if your vehicle fails inspection twice.

Since your car has a salvage title, you may have to play the waiting game to find a buyer who is interested in a side hobby. They’ll need to put in a lot of time and money into repairing the vehicle. However, there are a lot of DIY car gurus who would love of part-time hobby!

How Do I Apply for an Indiana Rebuilt Car Title?

Once you’ve repaired your salvage vehicle, and the vehicle passes inspection, you can apply for an Indiana rebuilt car title. To receive your rebuilt car title, you must submit the following items to your local IN BMV branch:

A completed Indiana rebuilt vehicle packet, which includes the following:
- Salvage motor vehicle restoration title application checklist
- Application for Certificate of Title for a Vehicle (Form 205)
- Affidavit of Restoration for a Salvage Motor Vehicle (Form 44606)
- Odometer Disclosure Statement (Form 43230) – if the vehicle transferred ownership
- General Affidavit (Form 37964) for parts you didn’t need to buy to repair or rebuild your vehicle
The vehicle’s salvage title
Proof of the following:
- Ownership and/or purchase for each component part you needed to buy to repair or rebuild your vehicle

If you sold your car from your auto insurance provider (full settlement), you must provide payment for the 7% sales tax or a Certificate of Gross Retail or Use Tax Paid (Form 48842) as proof of payment.

If you kept your salvage vehicle (partial settlement), you will need a Certificate of Gross Retail or Use Tax Exemption (Form 44841). All applicable fees and payment options and instructions are included in the packet. You need to be aware of the following Indiana vehicle fees:

Title Application fee: $15 (an additional $25 is required if you choose the expedited title option)
Administrative penalty: $30 (this fee is required if you don’t apply for the salvage title within 45 days of when the vehicle was obtained)

You’ll need to mail these required documents and all applicable fees to the address below: