NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTIONS

GET YOUR FREE CASE EVALUATION TODAY!

INTRODUCTION

This article discusses New Jersey Salvage Vehicle Fraud – situations where a vehicle is declared a salvage vehicle due to extensive damage but sold to someone without disclosure about the vehicle’s salvage title history.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #1

WHAT IS A SALVAGE TITLE?

When a vehicle is wrecked, destroyed or damaged so much that an insurance company considers it to be too expensive to fix the vehicle, the vehicle can only be fixed and sold if the title to the vehicle is marked with a note that the vehicle was salvaged. Normally, the title to a salvage vehicle is marked “salvage” to make it clear that the vehicle’s title is different from a vehicle with a non-salvaged title.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #2

WHAT IS NEW JERSEY SALVAGE VEHICLE LAW?

The New Jersey Motor Vehicle Code – the body of laws regulating the use and sale of vehicles in New Jersey – has a section regulating salvage vehicle titles which can be referred to as the New Jersey Salvage Vehicle Law or the New Jersey Salvage Title Law.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #3

WHAT ARE THE NEW JERSEY SALVAGE VEHICLE REGULATIONS?

The New Jersey Salvage Vehicle Regulations, also known as the Salvage Certificates of Title Regulations or the New Jersey Salvage Title Regulations, provide procedures for the issuance of salvage certificates of title and regulate the transfer of ownership of salvage vehicles.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #4

WHAT IS THE PURPOSE OF THE NEW JERSEY SALVAGE VEHICLE REGULATIONS?

The New Jersey Salvage Vehicle Regulations were adopted to do the following:

  • Provide standards and procedures necessary to protect the public from fraud by preventing negotiable certificates of ownership for salvage motor vehicles from being used to title or register stolen or other motor vehicles.
  • Provide standards and procedures to protect the public from fraud by providing for the seizure of salvage motor vehicles which are determined, after inspection pursuant to the New Jersey Salvage Vehicle Regulations, to be stolen or reconstructed, rebuilt or repaired using parts from stolen motor vehicles.
  • Provide standards and procedures to notify the public that a salvage motor vehicle has been subsequently reconstructed, rebuilt or repaired.
  • Provide standards and procedures for issuing salvage certificates of title.
  • Regulate transfer of ownership of salvage motor vehicles only as salvage motor vehicles until a negotiable certificate of ownership is obtained.
  • Provide standards and procedures for the inspection of salvage motor vehicles.
  • Provide standards and procedures for the issuance of negotiable certificates of ownership after the salvage motor vehicle is inspected per the requirements of the New Jersey Salvage Vehicle Regulations.
  • Provide standards for the issuance of salvage and/ or negotiable certificates of title that do not cause unreasonable burden to persons or entities licensed by the New Jersey Motor Vehicle Commission as auto body repair facilities, junk yards and/or motor vehicle dealers.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #5

WHAT IS CONSIDERED A SALVAGE VEHICLE?

Under the New Jersey Salvage Title Regulations, "salvage motor vehicle" means any motor vehicle which has been reported stolen or is damaged to such an extent that it is economically impractical to repair.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #6

WHAT IS ECONOMICALLY IMPRACTICAL TO REPAIR MEAN?

Under the New Jersey Salvage Vehicle Regulations, "economically impractical to repair" means that the motor vehicle is damaged to such an extent that:

  • For those motor vehicles manufactured eight or less model years from the current model year, the cost to repair such damaged motor vehicle, as determined by a bona fide repair estimate, equals or exceeds the fair market value of the motor vehicle immediately before it was damaged; or
  • For those other motor vehicles where the fair market value of such damaged motor vehicle immediately before it was damaged equals or exceeds the fair market value of a motor vehicle of the same make and model manufactured five years from the current model year, or similar make and model if the same make and model is no longer manufactured, if the motor vehicle has sustained damage to the extent that either:
    • The cost to repair such damaged motor vehicle, as determined by a bona fide repair estimate, equals or exceeds the fair market value of the motor vehicle immediately before it was damaged; or
    • The insurer settles a total loss claim with the motor vehicle owner as a result of the damage to the motor vehicle.

Under the New Jersey Salvage Title Regulations, the term "fair market value" means the retail value of the motor vehicle as determined by the average of the official valuation manuals approved by the Commissioner of the Department of Banking and Insurance in accordance with auto physical damage claims, N.J.A.C. 11:3-10. If that the retail value of the motor vehicle is not listed in the official valuation manuals, then the retail value of the motor vehicle may be determined by any other valuation method approved by the Commissioner of the Department of Banking and Insurance, in accordance with auto physical damage claims.

Under the New Jersey Salvage Title Regulations, the term "bona fide repair estimate" means any written determination of the approximate cost of parts and labor required to repair the damaged motor vehicle that is prepared by an auto body repair facility licensed pursuant to the New Jersey Motor Vehicle Code or by an adjuster of an insurance company licensed to do business in New Jersey. Licensed auto body repair facilities shall prepare the estimate in accordance with N.J.A.C. 13:21-21.10. If that more than one such repair estimate is prepared for the damaged motor vehicle, then the highest repair estimate shall be used to determine if the damaged motor vehicle is economically impractical to repair. This term does not include any repair estimate prepared by the motor vehicle owner.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #7

WHAT IS A SALVAGE CERTIFICATE OF TITLE?

Under the New Jersey Salvage Vehicle Law, a "salvage certificate of title" means a document issued by the New Jersey Motor Vehicle Commission of the Division of Motor Vehicles which serves as proof of ownership of a motor vehicle and provides a method of transfer of the vehicle only as a salvage motor vehicle. Under the New Jersey Salvage Vehicle Regulations, "salvage certificate of title" means the document issued by the New Jersey Motor Vehicle Commission pursuant to N.J.S.A. 39:10-31 et seq., or a similar document issued by another state, which serves as proof of ownership of a salvage motor vehicle.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #8

UNDER THE NEW JERSEY SALVAGE TITLE LAW - WHAT MUST A VEHICLE OWNER DO IF THEIR VEHICLE IS REPORTED STOLEN OR DAMAGED?

Under the New Jersey Salvage Title Law:

  • If a motor vehicle has either been reported as being stolen or suffered sufficient damage to render it economically impractical to repair, the person in possession of the certificate of ownership for the vehicle shall surrender the certificate of ownership to the New Jersey Motor Vehicle Commission along with a statement setting forth how the person acquired the certificate of ownership.
  • The New Jersey Motor Vehicle Commission, after determining ownership, shall issue a salvage certificate of title to a person who surrenders a certificate of ownership pursuant to subsection a. of this section.
  • Notwithstanding any provision of law to the contrary, when an insurer licensed to do business in New Jersey settles a total loss claim with the owner of a motor vehicle, and the owner of the motor vehicle fails to assign and deliver the motor vehicle's certificate of ownership to the insurer within 30 days of the payment of the claim, the insurer or an agent of the insurer may apply to the New Jersey Motor Vehicle Commission for a certificate of ownership or a salvage certificate of title for the motor vehicle in the name of the insurer without providing a certificate of ownership; provided that the New Jersey Motor Vehicle Commission determines that the issuance of a certificate of ownership is appropriate, in accordance with the provisions of the New Jersey Motor Vehicle Code.
  • The provisions of this subsection shall only apply when the most recent certificate of ownership for the motor vehicle was issued by this State.
  • The insurer shall provide notice to the owner and any lienholder of the motor vehicle identified in the records of the commission at least 30 days prior to applying for a certificate of ownership or a salvage certificate of title pursuant to this subsection. The notice shall be sent by certified mail or commercial courier whose regular business is delivery service and that provides proof of delivery to the owner and any lienholders at the last known address identified in the records of the commission. Failure to provide the notice required by this paragraph shall be cause for the New Jersey Motor Vehicle Commission to deny issuance of a certificate of ownership or a salvage certificate of title.
  • The application for a certificate of ownership or a salvage certificate of title shall be made on a form prescribed by the New Jersey Motor Vehicle Commission and shall include proof of payment of the claim, proof that the insurer requested the certificate of ownership, and proof that notice was provided, as required by paragraph (2) of this subsection, to the owner and any lienholders of the motor vehicle.
  • Failure to provide the proof required by this paragraph shall be cause for the New Jersey Motor Vehicle Commission to deny issuance of a certificate of ownership or a salvage certificate of title.
  • If, based upon the records of the commission, there was an outstanding lien or liens against the motor vehicle immediately prior to the payment of the claim and the claim was paid to a lienholder or lienholders, or to a lienholder or lienholders and the owner jointly, the proof of payment required pursuant to paragraph (3) of this subsection shall also include proof that the claim was paid to, or a letter stating that the lienholder has no interest in the motor vehicle was received from, each lienholder identified in the records of the commission. Failure to provide the proof required by this paragraph shall be cause for the New Jersey Motor Vehicle Commission to deny issuance of a certificate of ownership or a salvage certificate of title.
  • Upon proper application, the New Jersey Motor Vehicle Commission shall issue a certificate of ownership or a salvage certificate of title, as appropriate, in the name of the insurer. In the event the insurer sells the motor vehicle, the insurer shall assign the certificate of ownership or salvage certificate of title to the buyer.
  • Notwithstanding any provision of law to the contrary, when an insurer licensed to do business in New Jersey settles a total loss claim with the owner of a motor vehicle, and the owner of the motor vehicle fails to assign and deliver the motor vehicle's certificate of ownership to the insurer within 30 days of the payment of the claim, the insurer or an agent of the insurer may apply to the New Jersey Motor Vehicle Commission for a certificate of ownership or a salvage certificate of title for the motor vehicle in the name of the insurer without providing a certificate of ownership; provided that the New Jersey Motor Vehicle Commission determines that the issuance of a certificate of ownership is appropriate, in accordance with the provisions of the New Jersey Motor Vehicle Code.
  • The provisions of this subsection shall only apply when the most recent certificate of ownership for a motor vehicle was issued by another state; the motor vehicle records of the jurisdiction that issued the certificate of ownership indicate that there are no liens recorded against the motor vehicle; and the motor vehicle was damaged, stolen, or recovered in this State, was owned by a resident of this State immediately prior to a total loss settlement by an insurer, or as otherwise permitted by the New Jersey Motor Vehicle Commission.
  • The insurer shall provide notice by certified mail or commercial courier whose regular business is delivery service and that provides proof of delivery to the owner at least 30 days prior to applying for a certificate of ownership or a salvage certificate of title pursuant to this subsection. Failure to provide the notice required by this paragraph shall be cause for the New Jersey Motor Vehicle Commission to deny issuance of a certificate of ownership or a salvage certificate of title.
  • The application shall be made on a form prescribed by the New Jersey Motor Vehicle Commission and shall include proof of payment of the claim, proof that the insurer requested the certificate of ownership, and proof that notice was provided to the owner of the motor vehicle pursuant to paragraph (2) of this subsection. Failure to provide the proof required by this paragraph shall be cause for the New Jersey Motor Vehicle Commission to deny issuance of a certificate of ownership or a salvage certificate of title.
  • Upon proper application, the New Jersey Motor Vehicle Commission shall issue a certificate of ownership or a salvage certificate of title, as appropriate, in the name of the insurer for the motor vehicle. In the event the insurer sells the motor vehicle, the insurer shall assign the certificate of ownership or salvage certificate of title to the buyer.
  • Notwithstanding any provision of law to the contrary, when an insurer licensed to do business in New Jersey settles a total loss claim with the owner of a motor vehicle and the insurer obtains the certificate of ownership for the vehicle, but it is not properly assigned to the insurer within 30 days of the payment of the claim, the insurer or an agent of the insurer may apply to the New Jersey Motor Vehicle Commission for a certificate of ownership or a salvage certificate of title, as appropriate, in the name of the insurer.
  • The insurer shall provide notice to the owner and any lienholder, based upon the records of the commission, at least 30 days prior to applying for a certificate of ownership or a salvage certificate of title pursuant to this subsection. The notice shall be sent by certified mail or commercial courier whose regular business is delivery service and that provides proof of delivery to the owner and any lienholder at the last known address based upon the records of the commission. Failure to provide the notice required by this paragraph shall be cause for the New Jersey Motor Vehicle Commission to deny issuance of a certificate of ownership or a salvage certificate of title.
  • The application for a certificate of ownership or a salvage certificate of title shall be made on a form prescribed by the New Jersey Motor Vehicle Commission and shall include proof of payment of the claim, the certificate of ownership, proof that the insurer attempted to obtain the proper assignment of the certificate of ownership, and proof that notice was provided to the owner of the motor vehicle and any lienholder, in accordance with these requirements. Failure to provide the proof required by this paragraph shall be cause for the New Jersey Motor Vehicle Commission to deny issuance of a certificate of ownership or a salvage certificate of title.
  • Upon proper application, the New Jersey Motor Vehicle Commission shall issue a certificate of ownership or a salvage certificate of title, as appropriate, in the name of the insurer. In the event the insurer sells the motor vehicle, the insurer shall assign the certificate of ownership or salvage certificate of title to the buyer.
  • If an insurer requests that a salvage processor, whose primary business is the sale of total loss motor vehicles on behalf of insurers, take possession of a motor vehicle that is the subject of an insurance claim and subsequently, the insurer does not take ownership of the vehicle, the insurer may authorize the salvage processor to release the vehicle to the owner or lienholder. The insurer shall provide to the salvage processor a release statement authorizing the release of the vehicle to the owner or lienholder.
  • Upon receiving a release statement from an insurer, the salvage processor shall, within five business days, provide notice to the owner and any lienholder identified in the records of the commission, informing the owner and any lienholder that the vehicle may be released, upon payment of any outstanding charges, and that failure to claim the vehicle will result in vehicle being deemed abandoned. The notice shall include an invoice for any outstanding charges owed to the salvage processor and shall inform the owner or lienholder that the vehicle is required to be claimed within 60 days from the date of the notice. The notice shall also inform the owner or lienholder of the location of the vehicle. The notice required under this subsection shall be sent by certified mail or commercial courier whose regular business is delivery service and that provides proof of delivery to the last known address based upon the records of the commission.
  • Notwithstanding any provision of law to the contrary, in the event the owner or lienholder of the vehicle does not claim the vehicle within 60 days after the date of the notice, the vehicle shall be deemed abandoned and the salvage processor may apply to the New Jersey Motor Vehicle Commission for the issuance of a salvage certificate of title or a junk title certificate for the motor vehicle in the name of the salvage processor without providing a certificate of ownership. The application shall include proof that notice was provided to the owner of the motor vehicle and any lienholder.
  • Upon proper application, the New Jersey Motor Vehicle Commission shall issue a salvage certificate of title or a junk title certificate, as appropriate, in the name of the salvage processor, which shall extinguish any existing liens against the motor vehicle. If the salvage processor sells the motor vehicle, the salvage certificate of title or junk title certificate shall be assigned to the buyer and the vehicle shall be transferred without any liens against it.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #9

UNDER THE NEW JERSEY SALVAGE TITLE LAW, WHAT HAPPENS TO A SURRENDERED VEHICLE TITLE IF THAT VEHICLE IS RECOVERED?

Under the New Jersey Salvage Title Law, if a motor vehicle reported as being stolen is subsequently recovered, a certificate of ownership for the vehicle which had been surrendered to the New Jersey Motor Vehicle Commission by a person pursuant to the New Jersey Motor Vehicle Code may be issued by the New Jersey Motor Vehicle Commission to that person only if:

  • The person presents to the New Jersey Motor Vehicle Commission a salvage certificate of title for the motor vehicle;
  • The person presents to the New Jersey Motor Vehicle Commission a report from the law enforcement agency which recovered the vehicle; and
  • The vehicle passes an inspection at a State inspection facility to determine the accuracy of its vehicle identification number.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #10

UNDER THE NEW JERSEY SALVAGE TITLE LAW, WHAT IF A DESTROYED VEHICLE IS REPAIRED?

Under the New Jersey Salvage Title Law, if a motor vehicle which has suffered sufficient damage to render it economically impractical to repair is subsequently repaired, a certificate of ownership for the vehicle may be issued to a person only if:

  • The person presents to the New Jersey Motor Vehicle Commission a salvage certificate of title;
  • The repaired vehicle is inspected by an official specially designated by the New Jersey Motor Vehicle Commission to determine the accuracy of its vehicle identification number;
  • The person submits proof of ownership of repair parts used to the New Jersey Motor Vehicle Commission; and
  • The person complies with any other requirement the New Jersey Motor Vehicle Commission deems appropriate.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #11

WHAT MUST A PERSON SALVAGING A VEHICLE DO BEFORE TRANSFERRING OWNERSHIP OF A SALVAGED VEHICLE?

Under the New Jersey Salvage Title Regulations:

  • For every vehicle reported stolen or is damaged to such an extent that it is economically impractical to repair, no person shall transfer the ownership of a salvage motor vehicle except as a salvage motor vehicle until the owner obtains a certificate of ownership in accordance with this subchapter.
  • If a motor vehicle is reported as being stolen or is damaged to such an extent that it is economically impractical to repair such motor vehicle, the owner, insurer or person in possession of the certificate of ownership shall, within 10 working days after the motor vehicle was reported as stolen or damaged, or within 10 working days after settling a total loss insurance claim, surrender the certificate of ownership for such motor vehicle to the Commission.
  • Upon surrender of the certificate of ownership, as required by (a) above, the New Jersey Motor Vehicle Commission shall issue a salvage certificate of title to the owner of the salvage motor vehicle, after determining that the person applying for a salvage certificate of title is the owner of record; provided, however, that if the salvage motor vehicle is owned subject to a lien, a salvage certificate of title shall be issued in the name of the vehicle owner and shall be delivered to the lienholder of record by the Commission.
  • A lienholder of record shall be noted on the salvage certificate of title until the lien is properly satisfied and discharged in accordance with the New Jersey Motor Vehicle Code.
  • A fee, set forth in N.J.A.C. 13:21-4.2, shall be charged for the issuance of a salvage certificate of title.

Under the New Jersey Salvage Title Regulations, the term "owner" means the owner of record with the Commission on the date that the motor vehicle was stolen or sustained sufficient damage to render it economically impractical to repair.

Under the New Jersey Salvage Title Regulations, the term "person" means any natural person, business, firm, partnership, association, corporation, or any other entity.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #12

ARE THERE ANY REQURMENTS FOR THE TRANSFER OF TITLE TO SALVAGE VEHICLES?

Under the New Jersey Salvage Title Regulations:

  • Before an owner obtains a certificate of ownership in accordance with this subchapter, no person shall transfer ownership of a salvage motor vehicle except by proper assignment and delivery of a salvage certificate of title.
  • No salvage motor vehicle shall be sold at auction, or otherwise disposed of, in this State except by proper assignment and delivery of a salvage certificate of title.
  • The buyer of a salvage motor vehicle shall, within 10 working days after its purchase, apply for a new salvage certificate of title. The New Jersey Motor Vehicle Commission shall issue a new salvage certificate of title to the buyer upon surrender of the previous salvage certificate of title properly executed and assigned by the seller, together with the required title fee and New Jersey sales tax.
  • If ownership of a salvage motor vehicle is transferred by a motor vehicle dealer in accordance with the New Jersey Motor Vehicle Code, the dealer may assign and attach a dealer reassignment certificate to the salvage certificate of title.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #13

WHAT ARE THE REQUIREMENTS FOR REGISTERING SALVAGE VEHICLES?

Under the New Jersey Salvage Title Regulations:

  • A salvage motor vehicle shall not be registered for the purpose of being driven or operated on the public highways of this State, except in accordance with N.J.A.C. 13:21-22.11.
  • The New Jersey Motor Vehicle Commission shall deny registration, except a temporary registration issued in accordance with N.J.A.C. 13:21-22.11, to the owner of a salvage motor vehicle until the owner obtains a certificate of ownership in accordance with this subchapter.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #14

DO RECONSTRUCTED SALVAGE VEHICLES HAVE TO BE INSPECTED?

A salvage motor vehicle that has sustained damage to such an extent that it has been rendered economically impractical to repair, including a stolen motor vehicle that is recovered in such condition, and that is subsequently reconstructed, rebuilt or repaired must be inspected in accordance with N.J.A.C. 13:21-22.10(a) to determine the accuracy of its vehicle identification number and/or any identification numbers of any major component parts used to reconstruct, rebuild or repair the motor vehicle before a certificate of ownership will be issued for the motor vehicle.

The following documents must be presented to the Commission before the salvage motor vehicle will be inspected:

  • Salvage certificate of title;
  • Notice of appointment obtained in accordance with N.J.A.C. 13:21-22.10;
  • Bill of sale as proof of ownership for each major component part used in the reconstruction, rebuilding or repair of the motor vehicle, including the following parts:
    • Engine;
    • Transmission or transaxle;
    • Front bumper;
    • Rear bumper;
    • Each fender;
    • Hood or engine cover;
    • Each door;
    • Each quarter panel;
    • Decklid, tailgate or hatchback (whichever is present);
    • Roof (including T-tops/removable roof if present);
    • Cowl;
    • Frame;
    • Shock tower or apron; and
    • Assembled items:
      • Nose (fenders, hood, bumper, radiator support);
      • Front clip (cowl, frame section, shock and apron structure);
      • Rear clip (rear sheet metal, frame section, roof);
      • Short clip (rear clip without roof); and
  • A set of "before" and "after" color photographs of the motor vehicle. Each set of "before" and "after" color photographs shall consist of:
    • One photograph showing the entire front and entire left side of the motor vehicle; and
    • One photograph showing the entire rear and entire right side of the motor vehicle.
  • The bill of sale for each major component part shall include the following information:
  • Name and address of the buyer;
  • Name and address of the seller;
  • Date and the purchase price; and
  • For parts, as follows:
    • For a new part: description of the part and part number; or
    • For a used part: description of the part, the vehicle identification number (if available), make, model, and year of the motor vehicle from which the part was removed, the date the part was dismantled or removed (if available), and the name and address of the person or business which dismantled or removed the part. If the vehicle identification number is not indicated on the bill of sale, then the owner must obtain a letter from the seller or person who dismantled or removed the part stating why the vehicle identification number was not indicated on the bill of sale.

If the motor vehicle had been reported stolen, then the owner must also present a copy of the report from the law enforcement agency which recovered the stolen motor vehicle.

It is the responsibility of the owner to arrange satisfactory transportation of his or her salvage motor vehicle to have it inspected (for example, flatbed truck, towing by means of an approved towing device, temporary registration).

A stolen motor vehicle that is subsequently recovered with a missing, altered or damaged vehicle identification number or plate must, whether or not the vehicle has been damaged, be inspected in accordance with N.J.A.C. 13:21-22.10(b) to determine the accuracy of its vehicle identification number before a certificate of ownership will be issued for the motor vehicle.

The following documents must be presented to the Commission before the motor vehicle will be inspected:

  • Salvage certificate of title;
  • Copy of the report from the law enforcement agency which recovered the stolen motor vehicle; and
  • Notice of appointment obtained in accordance with N.J.A.C. 13:21-22.10.
  • The inspection performed upon a recovered stolen motor vehicle by the recovering law enforcement agency to ascertain ownership of the vehicle shall be deemed sufficient inspection for purposes of the issuance of a certificate of ownership to the owner of such vehicle pursuant to N.J.A.C. 13:21-22.14, provided that the recovered stolen vehicle does not have a missing, altered or damaged vehicle identification number or plate and has not sustained damage to such an extent that it has been rendered economically impractical to repair.

As a prerequisite to the issuance of a certificate of ownership, a salvage motor vehicle which has been damaged to such an extent that it has been rendered economically impractical to repair, including a stolen motor vehicle that is recovered in such condition, and that is subsequently reconstructed, rebuilt or repaired must undergo an inspection at a State inspection facility.

As a prerequisite to the issuance of a certificate of ownership, a salvage motor vehicle which is a recovered stolen vehicle with a missing, altered or damaged vehicle identification number or plate must undergo an inspection at a State inspection facility.

As a prerequisite to the issuance of a certificate of ownership, the owner of a salvage motor vehicle which is a recovered stolen vehicle that does not have a missing, altered or damaged vehicle identification number or plate and which has not been damaged to such an extent that it has been rendered economically impractical to repair shall supply the Commission with a copy of the report from the law enforcement agency which recovered the stolen motor vehicle to confirm that the vehicle has been inspected to ascertain ownership, together with the other documents required by N.J.A.C. 13:21-22.14.

Upon receipt of the completed application, together with the required inspection fee, if any, the Commission shall mail a notice of appointment to the owner indicating the date, time and place of the inspection.

The following fees, payable to the Commission, shall be charged to inspect the following salvage motor vehicles:

  • For a stolen motor vehicle (including a stolen motorcycle) that is subsequently recovered with a missing, altered or damaged vehicle identification number or plate, there is no fee.
  • For a motor vehicle (other than a motorcycle) that was previously determined to be economically impractical to repair, including a stolen motor vehicle that is recovered in such condition, and that is subsequently reconstructed, rebuilt or repaired, the fee is $ 200.00.
  • For a motorcycle that was previously determined to be economically impractical to repair, including a stolen motorcycle that is recovered in such condition, and that is subsequently reconstructed, rebuilt or repaired, the fee is $ 100.00.

An inspection appointment shall be rescheduled at no additional cost provided that the owner notifies the Commission at least five days prior to his or her scheduled inspection date that he or she is unable to have his or her salvage motor vehicle inspected on such date. In the event that the owner fails to provide the Commission with at least five days notice of his or her inability to have his or her salvage motor vehicle inspected on the scheduled inspection date, then the owner must submit an additional inspection fee equal to the amount of the original inspection fee to the Commission before a new inspection appointment will be issued to the owner to have his or her salvage motor vehicle inspected.

No vehicle identification number verification form or inspection report shall be issued if it is determined upon inspection that:

  • The salvage motor vehicle is a stolen motor vehicle;
  • The salvage motor vehicle contains a stolen major component part; or
  • The salvage motor vehicle, or a major component part thereof, displays the identification number or plate of a stolen motor vehicle.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #15

WHEN MUST CERTIFICATES OF OWNERSHIP BE ISSUED WITH A SALVAGE TITLE DESIGNATION?

A certificate of ownership with a salvage designation shall be issued to the owner (or, if the motor vehicle is owned subject to a lien, a certificate of ownership with a salvage designation shall be issued in the name of the vehicle owner and shall be delivered to the lienholder of record) of the following salvage motor vehicles:

  • A motor vehicle that was previously determined to be economically impractical to repair and that is subsequently reconstructed, rebuilt or repaired.
  • A stolen motor vehicle that is recovered in damaged condition (for example, stripped for major component parts) and that is subsequently reconstructed, rebuilt or repaired where the cost to repair the damaged motor vehicle, as determined by a bona fide repair estimate, equals or exceeds the fair market value of the motor vehicle immediately before it was stolen.

No certificate of ownership with a salvage designation shall be issued unless the following documents are presented to the Commission:

  • Salvage certificate of title;
  • Inspection report; and
  • For vehicles described in (a)2 above, a copy of the report from the law enforcement agency which recovered the stolen motor vehicle.

A unique vehicle identification number shall be assigned by the Commission to a motor vehicle that is reconstructed, rebuilt or repaired from more than one salvage motor vehicle.

A fee, as set forth in N.J.A.C. 13:21-4.2, shall be charged for the issuance of a certificate of ownership with a salvage designation.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #16

WHEN CAN CERTIFICATES OF OWNERSHIP BE ISSUED WITHOUT A SALVAGE TITLE DESIGNATION?

A certificate of ownership without a salvage designation shall be issued to the owner (or, if the motor vehicle is owned subject to a lien, a certificate of ownership without a salvage designation shall be issued in the name of the vehicle owner and shall be delivered to the lienholder of record) of the following motor vehicles:

  • A stolen motor vehicle that is subsequently recovered and which has not sustained damage to such an extent that it has been rendered economically impractical to repair, provided that the recovered stolen motor vehicle does not have a missing, altered or damaged vehicle identification number or plate.
  • A stolen motor vehicle that is subsequently recovered with a missing, altered or damaged vehicle identification number or plate after determination at a State inspection that such recovered motor vehicle is not a stolen motor vehicle, provided such vehicle has not sustained damage to such an extent that it has been rendered economically impractical to repair.

No certificate of ownership without a salvage designation shall be issued unless the following documents are presented to the Commission:

  • Salvage certificate of title;
  • Copy of the report from the law enforcement agency which recovered the stolen motor vehicle; and
  • For vehicles described in (a)2 above, a vehicle identification number verification form or inspection report.

A fee, as set forth in N.J.A.C. 13:21-4.2, shall be charged for the issuance of a certificate of ownership without a salvage designation.

NEW JERSEY SALVAGE VEHICLE FRAUD FREQUENTLY ASKED QUESTION #17

WHAT ARE THE PENALTIES FOR IMPROPERLY TRANFERRRING TITLE TO OR OBTAINING OWNERSHIP OF A SALVAGE VEHICLE?

Any person who transfers or obtains ownership of a salvage motor vehicle except by proper assignment and delivery of a salvage certificate of title shall be subject to the penalties set forth in the New Jersey Motor Vehicle Code. In addition to those penalties, the New Jersey Motor Vehicle Commission may suspend or revoke the license of any person who is licensed by the New Jersey Motor Vehicle Commission as an auto body repair facility, junk yard and/or motor vehicle dealer for a period not to exceed three years if such person transfers or obtains ownership of a salvage motor vehicle except by proper assignment and delivery of a salvage certificate of title.

TO LEARN MORE, GET A NO OBLIGATION CONSULT

Call Perlman DePetris Consumer Law for a no obligation phone consultation. Handling your case wrong from the beginning may only cost you more money and time in the end!! Try to do it right the first time by seeking legal advice from a competent lawyer! You might be entitled to be represented on a contingent basis, meaning that the attorney won’t get paid unless the case is successful and that the lawyer gets paid from your recovery instead of requiring you to pay attorney’s fees out of your own pocket up front. Other cases can be handled for a relatively small one-time payment of an up-front fixed attorney’s fee and with a contingent fee at the end of the case. Filing a claim yourself is very risky, since businesses often hire experienced defense attorneys to fight your case. Also, if you try to negotiate a settlement yourself, you may get less money than you deserve. You should always speak with an attorney before coming to any conclusions about your claim. Do not try to interpret the law by reading a website! Even if the facts of your case don’t fit Consumer Law requirements, you may be entitled to sue a business for a breach of your warranties under other state and federal laws or for a breach of contract or for some other type of claim and you may recover money damages, attorney’s fees and court costs.

DISCLAIMER

While this page gives some general background information, there is the danger that relying on this information alone could lead you to lose your claim. Laws and regulations frequently change and the law may have changed since the posting of this webpage. Factual differences between your case and cases described on this webpage can affect your chance of success. Don’t attempt to rely on the internet as the only source of information for your claim! Instead, get competent legal advice from a New Jersey licensed attorney. Call Perlman DePetris Consumer Law for a no obligation phone consultation.