How to Sell a Salvage Car in Nebraska

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Selling a salvage car in Nebraska can be done! By the time you’re done reading this article, you know how to sell a salvage car in the state of Nebraska and have all the available forms you’ll need to submit to the Nebraska Department of Motor Vehicles (NE DMV). Let’s get ready to junk a car!

Table of Contents

What is a Nebraska Salvaged Car?

A salvaged car in Nebraska is a late-model vehicle that has sustained extreme damage to the point that the repair costs exceed more than 75% of the car’s actual cash value (ACV), or a late-model vehicle that is 7 model years old or less, or a vehicle that has a retail value that exceeds $12,000. Cars that have suffered flood damage when water flooded over the floorboard, entered the passenger compartment and caused electrical, computerized, and/or mechanical damage are also considered salvage cars.

Nebraska Total Loss Claims

If your auto insurance provider determines your vehicle meets the criteria for a salvage car, you must file a total loss claim. You can choose to accept a full settlement or a partial settlement.

Accepting a Full Settlement

When you accept a full settlement, you sign the car title over to your auto insurance provider and receive full payment for the damages. With this option, you are also required to satisfy any liens, if applicable. Once you complete this step, you no longer have to worry about dealing with the vehicle anymore.

Accepting a Partial Settlement

If you accept a partial settlement, your auto insurance provider will pay you for partial damages and you will keep your vehicle, allowing you to sell the car for parts or repair the car and apply for a rebuilt Nebraska car title. To apply for a rebuilt car title, you must make the necessary repairs and the car must pass a Nebraska salvage inspection.

You may be wondering what’s your best option. You have to do what’s best for you. If you’re willing to put in the time, money, and effort that’s required to repair and rebuild your car, then go for it! You can also speak with a representative from your auto insurance company about the time and money it will take to repair your car given the damage your salvage car sustained.

Other Types of Salvage Titles in Nebraska

In Nebraska, you can also apply for a salvage title for the following types of vehicles:

  • All-terrain vehicle (ATV)
  • Utility vehicle (UTV)
  • Minibike
  • Motorboat

However, the application process for the above vehicles is different from the steps that are required to obtain a salvage title for a car. Click here to learn about ATV, UTV, and minibike salvage titles. You can click here to learn more about motorboat salvage titles.

Nebraska Salvage Title Eligibility Requirements

To be eligible to apply for a Nebraska salvage title, you must first satisfy certain criteria. For instance, if you want to obtain a salvage title, you must have a motor vehicle that has been damaged, wrecked, or destroyed as a result of different circumstances, such as an accident, flood, or similar damage.

Also, the repair cost of the vehicle must exceed its retail value to quality as a salvage car. You may also be required to satisfy other requirements, which can vary based on your specific situation.

What is an Actual Cash Value?

Putting the “value” in the same sentence as salvage car may be a little confusing. You may think your salvage car is a piece of junk that you don’t want to bother to repair, which may be true, but your salvage car still has value. Your salvage car’s actual cash value (ACV) is the equivalent of your car’s replacement cost minus its depreciation. The ACV reflects your car’s accounting value but doesn’t necessarily reflect its economic value. What does this mean? Your car can be more or less of value than its ACV when you sell it if you choose to sell your salvage car.

How is the Actual Cash Value Determined?

When you think about determining the value of something, you may cringe because it involves math but don’t worry. Determining your car’s ACV can be done using a simple equation, such as this one:

ACV= purchase price x (expected life-current life  ÷ expected life

In general, with normal wear and tear, a car’s expected life is 11 years, and the current life of your car is your car’s age. We’ll give you a simple scenario. If your vehicle is a year model 2000, and the current year is 2023, the current life of your salvage car would be 23 years. Use this equation and scenario to help you plug in the numbers where they belong, solve the equation, and you’re done!

What’s the Difference Between the Actual Cash Value and the Replacement Cost of a Car in Nebraska?

There’s a huge difference between the ACV and the replacement cost of a car, and you need to know the difference between the two. Why is this information important? The option you choose determines if you can replace your car or not.

Your salvage car’s ACV is important when you’re getting auto insurance in Nebraska. If you’re the primary policyholder on the insurance account, you make the decisions regarding the account. If your car is damaged in an accident, you can choose if you’re paid the replacement cost of the car or be paid the car’s ACV.

If you want to be able to replace your vehicle with a new car of the same type, you will choose to be paid the replacement cost of the car. The other option is to be paid for the car’s ACV. However, if you choose to be paid for the car’s ACV, you won’t have enough money to cover the purchase of a new car of the same type once depreciation is considered.

Can You Sell a Salvage Car in Nebraska?

Selling your salvage car in Nebraska can be tricky. It’s not illegal to sell a salvage car in Nebraska, but you must follow specific rules when selling your salvage car. The first thing you need to make sure you do is disclose your car’s current condition. You don’t want to face fines and penalties if someone purchases your car without knowing the car is a salvage.

Don’t Get Caught Up in Salvage Title Fraud

We know that a salvage car has sustained extensive damage to the point the auto insurance company deems it not worth repairing. Nebraska law requires the title of any salvage car to disclose that the car is a salvage. However, as the car’s seller, you are responsible for disclosing this information to the buyer.

Terms that can also mean a car is a salvage can include the following:

  • Warranty returned
  • Totaled
  • Reconditioned
  • Junk
  • Non-repairable
  • Reconstructed/Rebuilt
  • Flood damaged
  • Damaged payback

Knowingly selling a salvage car without disclosing its salvage condition is considered a Class IV felony, which is punishable by up to 2 years of imprisonment, a $10,000 fine, or both.

Documents You Must Have to Sell Your Salvage Car in Nebraska

To sell your salvage car in Nebraska, you must have the following documentation:

  • The original vehicle title or a duplicate Nebraska car title (Form RV-707a) if you have misplaced the original title
  • A State of Nebraska Department of Motor Vehicles Bill of Sale or a complete Nebraska Sales/Use Tax and Tire Fee Statement for Motor Vehicle and Trailer Sales (Form 6)

What Should I Include On the Bill of Sale Required to Sell a Salvage Car in Nebraska?

Since you are required to have a bill of sale when selling your salvage car in Nebraska, it’s a good idea to know what information needs to be included. Although you can download the Nebraska bill of sale, you need to know what information is required so you can make sure there aren’t any delays or penalties due to missing information. Make sure that the bill of sale includes the following information:

  • Date of sale
  • Make, model, and year of the car
  • A complete description of the vehicle (color, body, style)
  • Vehicle identification number (VIN)
  • Odometer reading
  • Buyer’s full name and address
  • Seller’s full name and address
  • Purchase price of the vehicle
  • You and the buyer’s signature

The purpose of providing a bill of sale is to provide legal documentation for the sale of a vehicle. This document is the receipt for the buyer and provides the seller with proof that you no longer own the vehicle. The bill of sale also allows the buyer to clear the car’s title and register for a rebuilt Nebraska title. You can apply for a rebuilt car title once you complete the required steps if you want to keep the car.

Are There Salvaged Vehicle Restrictions in Nebraska?

There are restrictions for all cars. However, salvage cars often have more restrictions than other cars because of their salvage condition, they are not safe to operate. In Nebraska, it is illegal to operate salvage cars, even in they still run. If you want to drive your salvage car again, you must pass an inspection and apply for a rebuilt car title.

Can You Sell a Salvaged Car Without the Title in Nebraska?

No. You can’t sell a salvage car without the title in the state of Nebraska. You can, however, apply for a duplicate car title and sell your car once you receive the title. Keep in mind that repairing your salvage car won’t make it legal to sell in Nebraska. You will still need the car’s title.

Why is a Nebraska Car Title an Essential Document?

A Nebraska title is an essential document because it possesses information that is required to prove ownership of the car and to finalize your salvage car sale. The car’s title includes the following information:

  • the name(s) of the car owner(s) and the following information:
  • Year, make, and model of the vehicle (may include the body type of the vehicle)
  • Vehicle color
  • Odometer reading
  • The date on which the odometer reading was done
  • Owner or owners of the vehicle
  • Owner’s address
  • The date on which the title was issued

A car’s title can also include the following:

  • Title number
  • The vehicle’s weight
  • The number of cylinders in the engine
  • The engine number
  • The type of fuel used in the car
  • The license plate number

The car’s title will have the signature of one or multiple state officials who are in charge of motor vehicles or revenue collection, such as the Division of Motor Vehicles or Department of Motor Vehicles (DMV), Department of Transportation (DOT), Motor Vehicle Division (MVD), and similar motor vehicle departments. In the state of Nebraska, you would have signatures from the Nebraska Department of Motor Vehicles.

Can You Sell a Salvaged Car Without the Car’s Registration in Nebraska?

Your salvage car’s registration is important, but when it comes to selling the car, it’s not as essential as the car’s title, but it may still be required. Make sure you have the car’s registration to be on the safe side.

How and Where Do I Get a Nebraska Salvage Car Title?

If you keep your total loss vehicle and want to apply for a Nebraska salvage title, your auto insurance provider must notify the NE DMV. Once notified, the NE DMV will enter the salvage brand on the title’s records.

Your auto insurance provider will notify you that you have 30 days from accepting the settlement to apply for the Nebraska salvaged title. To apply for an NE salvage title, you must submit the following to your local NE DMV branch:

  • A completed Application for Certificate of Title (Form RV-707). Make sure you check the box named “salvage”
  • The vehicle’s original title
  • Any lien satisfaction documents, if applicable
  • Payment for the $10 salvage title fee

Call your local NE DMV branch before you visit to learn about their acceptable forms of payment.

Once you receive your salvage car title, you can start repairing your car, if you plan on keeping it. If you want to keep the car, you must repair the car and it must pass inspection.

Salvage Car Inspections in Nebraska

Before you can obtain rebuilt (previously salvaged) car title, you need to repair your salvaged car to Nebraska’s legal and safety standards. After making the required repairs, your car must be inspected at your county sheriff’s office. You can contact your county treasurer for more information regarding salvage vehicle inspection locations and hours of operation.

During the salvage inspection, the inspector will do the following:

  • Ensure the vehicle identification number (VIN) matches the VIN listed on the car’s title
  • Look at the odometer reading

The inspector may also check the bills of sale, receipts, and/or invoices of the significant parts that were used to rebuild the vehicle to ensure these parts weren’t stolen.

When the time comes to complete your inspection, you need to make sure you have the following:

  • The car’s salvage title (required for proof of ownership) – If there is a lien on the vehicle, contact your county treasurer’s office so a representative can request a copy of the title from the lienholder or leasing company.
  • The bills of sale, receipts, and/or invoices for the significant parts
  • Payment for the $10 inspection fee

After your vehicle passes inspection, the inspector will complete and sign a vehicle inspection form that is valid for 90 days once the inspection is complete. Don’t lose this inspection form. You will need it to retitle your vehicle.

Are There Vehicle Inspection Exemptions in Nebraska?

Some vehicles in Nebraska are not required to be inspected. These vehicles include, but are not limited to vehicles:

  • That have a Nebraska Certificate of Title
  • That has the Manufacturer’s Statement of Origin (MSO)
  • That has the U.S. government certificate to obtain Title to a vehicle
  • Application for a Salvage certificate of title or a non-transferable certificate of title
  • Application for a motorboat title
  • Trailers or mobile homes

What Major Vehicle Components Are Checked During a Nebraska Vehicle Inspection?

During a Nebraska vehicle inspection, the following components are checked:

  • Engine (motor) with or without accessories
  • Transmission
  • Nose – the part of the body from the front to the firewall when acquired or transferred as a complete unit
  • Frame – the part of the vehicle upon which other parts are affixed, such as the engine, body, or transmission
  • Door
  • Body – the portion of a vehicle determining its shape and appearance and is attached to the frame but does not include the box or bed for a truck
  • Rear clip -two or more of the following that are dismantled from the same vehicle:
    • A quarter panel or fender
    • Floor panel assembly
    • Trunk lid or gate
  • Cowl – the part of the car that houses the windshield and instrument panel

What is the Process for Registering a Salvaged Car in Nebraska?

There is no process for registering a salvage car in Nebraska because you aren’t allowed to do so. To register your car, you must first repair the salvage car and have it inspected. Once the car passes inspection, you will be able to obtain a Nebraska rebuilt car title.

Nebraska Vehicle Registration Fees

The following are the vehicle registration fees in Nebraska:

  • $15 – registration fee for passenger and leased vehicles
  • $0.50 – Emergency Medical System Operation Fund – this fee is collected for Health and Human Services
  • $2 – Department of Motor Vehicles Cash Fund – this fee stays with the DMV
  • $1.50 – State Recreation Road Fund – this fee is collected for the Department of Roads
  • $1.50 – County General Funds – this fee stays with the county official (the fee is $4.50 if you are a non-resident)
  • $4.10 – Plate fee – this fee is assessed whenever new, duplicate, or replacement plates are issued (remitted to the Highway Trust Fund)

The registration fee for commercial trucks and truck tractors is based on the gross vehicle weight of the vehicle. Registration fees for farm-plated trucks and truck tractors are based on the gross vehicle weight of the vehicle.

Is There a Different Between a Nebraska Salvage Title, Rebuilt Car Title, and a Junk Title?

Yes. There are differences between all three of these car titles. Car titles show proof of ownership of the vehicle. Here’s what you need to know.

Salvage car title – a Nebraska salvage title is issued for vehicles that have been in an accident that destroyed the vehicle or damaged it to the point that the cost to repair the car exceeds 75% of the vehicle’s retail value before it was damaged.

Rebuilt car title – a Nebraska rebuilt car title is issued for vehicles that were once salvaged but have been repaired and passed the salvage vehicle inspection. A rebuilt car title is required to operate the car on roads and highways again.

Junk car title – junk car titles in Nebraska are issued for vehicles that have been severely damaged and can NOT be repaired and must be scrapped at a recycling company or junked at a salvage yard.

Who Buys Salvage Cars Near Me in Nebraska?

There are a lot of options when it comes to choosing a salvage yard in Nebraska. It’s best to choose a salvage yard that’s local to you. We’ve given you a head start by providing a handful of salvage yards throughout Nebraska.

C&S Truck & Salvage
43801 Highway 30
Lexington, NE 68850
(308) 324-4606
Monday – Friday (8 AM – 5 PM)
Saturday and Sunday (Closed)

Tri-City Auto Parts Inc.
924 w. 4th Ave.
Holdrege, NE 68949
(308) 995-6153
Monday – Friday (7:30 AM – 5 PM)
Saturday and Sunday (Closed)

H&H Auto Parts
41835 Highway 30
Cozad, NE 69130
(800) 627-3006
Monday – Friday (8 AM – 5:30 PM)
Saturday (8 AM – 12 PM)
Sunday (Closed)

Four Brothers, Inc.
5440 N. 70th St.
Lincoln, NE 68507
(402) 467-3531
Monday – Friday (8 AM – 5 PM)
Saturday and Sunday (Closed)

How Long Do I Have to Wait to Obtain an Auto Insurance Policy for My Salvage Car in Nebraska?

As long as your car has a salvage title, you won’t be able to get auto insurance. However, if you repair the car and the car passes inspection, you will be eligible to apply for a rebuilt salvage time. Once you get the rebuilt car title, you can get auto insurance.

Can I Salvage My Car Without the Title in Nebraska?

Sorry. You won’t be able to salvage your car without its title. The car’s title is one of the most essential documents in the salvage process. Without the title, you may be able to get the car repaired, if you choose, but that’s it. If you’ve lost your car title, you can complete an Application for a Duplicate Certificate of Title (Form RV-707a) and submit it to your local NE DMV branch. Make sure you are ready to pay all applicable fees that are associated with obtaining a duplicate car title.

What Are My Options for Selling My Salvage Car in Nebraska?

The first thing you need to do is set realistic expectations. Since you are not selling a car that’s in mint condition, you will not get as much money as you would if you were selling a car with a clean title and no damages. However, you can still make money from selling your salvage car. Let’s take a look at your salvage car selling options in Nebraska.

Private Sale

In a private sale, you are selling your car to another person and not a junkyard, salvage yard, or another type of business. This is a great selling option if you’re not in a hurry to sell your car.

Salvage Yard or Junkyard

Choosing this selling method is best if you want to sell your salvage car quickly without too many hassles. You don’t have to worry about waiting for a buyer and a lot of paperwork. Most junkyards will tow your car free of charge and you’ll receive your funds the same day.

Selling for Parts

Parting out your salvage car is another selling option that could potentially make you a pretty penny. If you know your way around a car, parting out your car won’t be too big of a hassle. If not, no worries. A mechanic can help evaluate your car and determine which parts are in demand and get you the most money.

Selling As-Is

If you don’t want the hassle and expense of repairing your car, you’ll want to sell it as-is. You don’t have to worry about getting the car to pass inspection or completing different forms to make the car operable. The buyer will have this responsibility.

Common Difficulties That Can Occur When Selling Your Salvage Car in Nebraska

Selling a salvage car is more complicated than selling a car that has a clean title and little to no damage. Believe it or not, the best and quickest way to sell your salvage car is honesty. By law, you must disclose that your vehicle is salvaged. Failure to disclose this information is a recipe for disaster. You could be forced to pay fines and even face criminal charges.

How Can I Apply for a Rebuilt Car Title in Nebraska?

Once you repair your car and it passes inspection, you’ll be eligible to apply for a rebuilt car title with your local NE DMV branch. This salvaged title allows your vehicle to be driven on roads and highways.

You’ll need the following to receive your Nebraska rebuilt car title:

  • Your car’s salvage certificate of title
  • A completed Application for Certificate of Title (Form RV-707). Make sure you check the “previously salved” box.
  • The vehicle inspection form (you received this form from the inspector after your car passed inspection)
  • Payment for all applicable fees (check with your local NE DMV branch for acceptable payment methods)
    • Previously salvaged title: $10
    • Lien recording, if applicable: $7

After everything is approved, you will receive your Nebraska rebuilt car title. You can now register your car with the NE DMV and hit the road! If you need help with the retitling process, call the NE DMV at (402) 471-3918.

How Long Does it Take to Receive a Nebraska Rebuilt Car Title?

The time it takes to receive your Nebraska rebuilt car title depends on how long it takes to repair the car and have it pass inspection. The sooner you complete these tasks, the quicker you can apply for your rebuilt car title.