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Chapter 9 – Reconstructed, Rebuilt, Salvage and Nonrepairable Vehicles

01/14/2014
2:57 PM

Section A.  Reconstructed, Rebuilt or Homemade/Shop-Built Vehicles
Section B.  Gliders (or) Glider Kits
Section C.  Reconstructed Kits
Section D.  Reconstructed Vehicle with Dismantler Notification  
Section E.  Salvage and Nonrepairable Vehicles
Section F.  Salvage Certificate of Title or Reconditioned Title  
Section G.  Multiple Records, Multiple VINs

 

Section A: Reconstructed, Rebuilt or Homemade/Shop-Built Vehicles

Revised November 29, 2017

Reconstructed, rebuilt, homemade or shop-built vehicles may be titled if the applicant has all the required documents and provided that the vehicle conforms to all vehicle equipment safety standards applicable to the particular vehicle.

Requirements

  1. Manufacturer's Certificate of Origin (MCO) or Certificate of Title

    Required only for a factory chassis. Does not apply if the chassis is homemade/“shop built.”
     
  2. Affirmation Certifying Ownership 

    The "Affirmation Certifying Ownership" form (MVD-10010), must be completed and signed by the applicant attesting to the fact that they are the legal owner of the vehicle.
     
  3. Invoices and Bills of Sale

    Must be provided for any parts purchased to build the vehicle.
     
  4. Affirmation for Specially Constructed or Reconstructed Vehicle

    The "Affirmation for Specially Constructed or Reconstructed Vehicle" form (MVD-10015), must be completed and signed by the applicant attesting to the fact that the vehicle has been constructed or reconstructed from a factory or homemade/“shop built” chassis. The affirmation also indicates whether the vehicle was previously titled or registered in another state.
     
  5. Vehicle Equipment Affirmation

    The "Vehicle Equipment Affirmation" form (MVD-10053), must be completed and signed by the applicant. Review the document to be sure that the applicant has checked off all equipment required for the type of vehicle being registered. Assembled vehicles must comply with federal standards for highway use (this is the owner's responsibility).

    CSRs should also verify that all required equipment indicated upon the Vehicle Equipment Affirmation form (MVD-10053) is in place and in working order.

    If any of the required equipment is still missing or not working, DO NOT process the transaction.
     
  6. Weight Certificate

           Must be provided to accurately assess registration fees (except for motorcycles and off-highway vehicles).

  1. Affidavit of VIN

    All reconstructed vehicles will require a Level 3 VIN inspection.

    Homemade/Shop-built vehicles:  
  • The preliminary VIN inspection is performed to verify and document there are no VINs located on the vehicle; and
  • that the vehicle does not appear to be factory manufactured.
  • CSRs should also verify that all required equipment indicated upon the Vehicle Equipment Affirmation form (MVD-10053) is in place and in working order.??
  1. New Mexico Assigned VIN

    For homemade or shop-built vehicles, the division will assign a permanent identification number also known as a New Mexico Assigned Number. The owner will be required to have the New Mexico Assigned Number machined, stamped, die-punched or otherwise inscribed onto the vehicle and return for a visual inspection.

    For trailers, the newly assigned New Mexico Assigned Number must be machined, stamped, die-punched or otherwise inscribed onto the trailer, eight inches from the ball hitch, on the left side of the trailer tongue frame. 

    For home-made motorcycles, the newly assigned New Mexico Assigned Number must be machined, stamped, die-punched, or otherwise inscribed onto the right (curb) side of the frame, on the neck of the steering head.

    For home-made cars and trucks, the newly assigned New Mexico Assigned Number must be machined, stamped, die-punched or otherwise inscribed onto the driver-side door post, near the spot where the door latches.

    When a rebuilt or reconstructed vehicle requires a New Mexico Assigned Number, do not deface the original VIN on the vehicle. If the original VIN is already in the specified location, have the New Mexico Assigned Number inscribed in close proximity to or below the original VIN. Do not run the two identifying numbers together.
     
  2. Final Inspection

    A visual inspection will be conducted by an MVD employee to verify that the New Mexico Assigned Identification Number has been accurately machined, stamped, die-punched, or otherwise inscribed onto the vehicle, according to the instructions provided you, prior to issuing the New Mexico title and registration.?

    Factory-Made Chassis Determines Year Model
    On vehicles that are reconstructed, the chassis (when the chassis, parts and equipment, including the frame, are standard factory equipment) will determine the year model of a vehicle. Enter the VIN from the title of the chassis as the primary number. The vehicle must be identified as "REBUILT".

    Shop-Built Chassis Determines Year Model
    If the vehicle, including the chassis and/or body, is built from scrap metal, “shop-built” parts or parts from other vehicles, the year in which the vehicle is built will determine the year model. The vehicle make will be "HOMEMADE," and the constructed vehicle must comply with all current safety requirements for highway operation. Assign a New Mexico Assigned VIN as the primary vehicle identification number. 
     
  3. Fees

    Normal fees apply. The excise tax will be based on the sale price indicated on the invoice for vehicle chassis plus any other parts purchased to construct the vehicle.

 

Section B: Gliders (or) Glider Kits

Revised November 27, 2017

The terms "glider" and "glider kit" relate to the process of constructing or reconstructing a large truck or tractor starting with a frame, cab complete with wiring, instruments, fenders and hood, and front axles and wheels, and adding an engine, transmission and rear axles.

Glider Kits come with a Manufacturer’s Certificate of Origin (MCO). The MCO will specifically state that the vehicle is a "glider kit" or a "kit vehicle." 
 

Requirements

  1. Manufacturer's Certificate of Origin

    With assignment completed to the applicant.
     
  2. Manufacturer or Dealer Invoice

    Must be an original or certified copy and contain complete description of the glider, including the VIN, and indicate the sales price.
     
  3. Affidavit of Constructed or Reconstructed Vehicle 

    The "Affirmation for Specially Constructed or Reconstructed Vehicle" form (MVD-10015), must be completed and signed by the applicant attesting to the fact that the vehicle has been constructed or reconstructed from a factory or homemade/“shop built” chassis. The affirmation also indicates whether the vehicle was previously titled or registered in another state.
     
  4. Vehicle Equipment Affirmation

    The "Vehicle Equipment Affirmation" form (MVD-10053), must be completed and signed by the applicant. Review the document to be sure that the applicant has checked off all equipment required for the type of vehicle being registered. Assembled vehicles must comply with federal standards for highway use (this is the owner's responsibility). If the applicant tells you that some of the equipment is still missing or not working, DO NOT process the transaction.
     
  5. Weight Certificate

    Must be provided to accurately assess registration fees. Normal fees apply. Excise tax is based on the sale price indicated on the invoice for the “Glider” (from a dealer or a manufacturer), receipts for parts, and labor cost to rebuild the vehicle.

 

Section C: Reconstructed Kits

Revised November 27, 2017

Year Model and Make Determined by Chassis

The title issued to a “reconstructed vehicle” using an existing factory-made chassis and a kit will indicate the make, year model, and VIN of the vehicle as identified on the chassis’ title. The make identified on the kit will be indicated in the "body type" field. "REBUILT" will be indicated in the "brand" field.

If the MCO or Invoice for the kit shows an identification number, this number must be captured as the secondary identification number on the Certificate of Title.

Example: If a Mercedes kit is placed over a 1978 Ford chassis, the make of vehicle will be “Ford”; the series will be “MRZ”; and the model year will be “1978.” (In effect we now have a "Mercedes-series 1978 Ford.")

The Certificate of Title and registration will indicate in the “BRAND” field that it is a “REBUILT” vehicle.

Requirements

  1. Certificate of title 

    The current Title for the existing chassis.
     
  2. Manufacturer's Certificate of Origin (MCO) or Certificate of Title for the Kit.
     
  3. Kit Invoices

    Must be provided to accurately assess excise tax.
     
  4. Affirmation Certifying Ownership

    The "Affirmation Certifying Ownership" form (MVD-10010), must be completed and signed by the applicant attesting to the fact that they are the legal owner of the vehicle.
     
  5. Affirmation for Specially Constructed or Reconstructed Vehicle 

    The "Affirmation for Specially Constructed or Reconstructed Vehicle" form (MVD-10015), must be completed and signed by the applicant attesting to the fact that the vehicle has been constructed or reconstructed from a factory or homemade/“shop built” chassis. The affirmation also indicates whether the vehicle was previously titled or registered in another state.
     
  6. Vehicle Equipment Affirmation

    The "Vehicle Equipment Affirmation" form (MVD-10053) must be completed and signed by the applicant.

    Review the document to be sure that the applicant has checked off all equipment required for the type of vehicle being registered. Assembled vehicles must comply with federal standards for highway use (this is the owner's responsibility). CSRs should also verify that all required equipment indicated upon the Vehicle Equipment Affirmation form (MVD-10053) is in place and in working order.

    If any of the required equipment is still missing or not working, DO NOT process the transaction.
     
  7. Weight Certificate 

    Must be provided to accurately assess registration fees (except for motorcycles and off-highway vehicles).
     
  8. Affidavit of VIN

    All reconstructed vehicles will require a Level 3 VIN inspection.

A New Mexico Assigned number is no longer required for a reconstructed vehicle. There may be instances, however, when a New Mexico Assigned number is indicated by Law Enforcement, a court order, or in other unique circumstances. Please refer related questions to your Bureau Chief.

Factory-Made Chassis Determines Year Model

On vehicles that are reconstructed, when the chassis, parts and equipment, including the frame, are standard factory equipment, the chassis will determine the year model of a vehicle. Enter the VIN from the title of the chassis as the primary number. The vehicle must be identified as "REBUILT".

Shop-Built Chassis Determines Year Model

If the vehicle, including the chassis and/or body, is built from scrap metal, “shop-built” parts or parts from other vehicles, the year in which the vehicle is built will determine the year model. The vehicle make will be "HOMEMADE," and the constructed vehicle must comply with all current safety requirements for highway operation. Assign a New Mexico Assigned VIN as the primary vehicle identification number.

Fees 

Normal fees apply. The excise tax will be based on the sale price indicated on the invoice for vehicle chassis, kit and any other parts purchased to construct the vehicle.

 

Section D: Titling a Vehicle with Dismantler Notification

Revised November 27, 2017

Titling a Vehicle with Dismantler Notification

When the source document for an Application for Title is a New Mexico Dismantler Notification Form (a.k.a. Tapestry Dismantler Letter), the vehicle must be identified as “SALVAGE”.

Requirements

  1. Dismantler Notification Form – This is surrendered as the “Title” would be when applying for title transfer and registration.
     
  2. Bill of Sale – Properly assigned from the dismantler to the purchaser.
     
  3. VIN Inspection – Must be conducted by a Motor Vehicle Division Certified VIN Inspector.
     
  4. Dismantler Invoice – Must be an original or a certified copy; and must indicate the vehicle information, including the VIN, and reflect the sales price.

NOTE: When processing Title, enter "DISM" and the Dismantler Notification Letter ID Number in the Previous Title Field (example "DISML1234567890").

Fees

Normal fees apply. The excise tax will be based on the purchase price indicated on the bill of sale.

 

Section E: Salvage and Nonrepairable Vehicles

Revised December 1, 2017
 

Recent changes in statute and rule

Legislation enacted in 2005 and 2007, and rule revisions in 2006, made significant changes in the definitions and procedures to be followed with regard to salvage and nonrepairable vehicles. The relevant sections in statute are §§ 66-1-4.12, 66-1-4.16, 66-3-4, 66-3-10.1 and 66-3-115. The applicable rules can be found in the New Mexico Administrative Code at 18.19.3.51, 18.19.3.52 and 18.19.3.53 NMAC.


Definitions

"Salvage vehicle" means a vehicle:

  1. other than a nonrepairable vehicle, of a type subject to registration that has been wrecked, destroyed or damaged excluding, pursuant to rules issued by the department, hail damage, to the extent that the owner, leasing company, financial institution or the insurance company that insured or is responsible for repair of the vehicle considers it uneconomical to repair the vehicle and that is subsequently not repaired by or for the person who owned the vehicle at the time of the event resulting in damage; or
     
  2. that was determined to be uneconomical to repair and for which a total loss payment is made by an insurer, whether or not the vehicle is subsequently repaired, if, prior to or upon making payment to the claimant, the insurer obtained the agreement of the claimant to the amount of the total loss settlement and informed the claimant that, pursuant to rules of the department, the title must be branded and submitted to the department for issuance of a salvage certificate of title for the vehicle.

"Nonrepairable vehicle" means a vehicle of a type otherwise subject to registration that:

  1. has no resale value except as a source of parts or scrap metal or that the owner irreversibly designates as a source of parts or scrap metal or for destruction;
     
  2. has been substantially stripped as a result of theft or is missing all of the bolts on sheet metal body panels, all of the doors and hatches, substantially all of the interior components and substantially all of the grill and light assemblies and has little or no resale value other than its worth as a source of a vehicle identification number that could be used illegally; or
     
  3. is a substantially burned vehicle that has burned to the extent that there are no more usable or repairable body or interior components, tires and wheels or drive train components or that the owner irreversibly designates for destruction or as having little or no resale value other than its worth as a source of scrap metal or as a source of a vehicle identification number that could be used illegally.


Who determines that a vehicle is salvage or nonrepairable?

By rule, the declaration by an insurance company that a vehicle is a salvage or nonrepairable vehicle makes the vehicle a salvage vehicle or nonrepairable vehicle regardless of the relative amounts of repair costs versus fair market value. And, once a title has been salvage-branded, all subsequent transfers of title must be by salvage-branded title. Once a nonrepairable vehicle certificate has been issued for a vehicle, the motor vehicle division shall not issue further ownership certificates for that vehicle.


Transfer of a salvage or nonrepairable vehicle

It is unlawful for a person to sell or otherwise convey ownership of a salvage or nonrepairable vehicle unless the certificate of title or ownership is branded or a comparable title, certificate or ownership document has been issued by another state or jurisdiction.

An owner of a nonrepairable vehicle shall sell or otherwise convey that vehicle only to a licensed wrecker of vehicles or a person licensed by a jurisdiction outside of this state to process vehicles by dismantling, wrecking, shredding, crushing or selling motor vehicle parts or scrap material or otherwise disposing of motor vehicles.


Insurance company takes title

When an insurance company takes title to a salvage or nonrepairable vehicle, and makes a total loss payment to the vehicle owner, the insurance company must apply for a salvage title or nonrepairable certificate in its name before transferring title to the vehicle. The insurance company shall submit the endorsed title or Manufacturer's Certificate of Origin (MCO) to the Motor Vehicle Division, together with a written explanation of the reason for the branding. In the case of a salvage vehicle, a statement must be included of the costs of repair to make the vehicle safe for operation on the highways and the estimate of its fair market value immediately prior to damage. If the title was issued by a jurisdiction other than New Mexico, a copy of the title must be sent to the issuing jurisdiction with a completed “statement of loss.”


Vehicle owner chooses to keep the vehicle

If, however, the vehicle owner chooses to keep the salvage or nonrepairable vehicle and accepts a reduced payout from the insurance company, the transferor shall stamp or otherwise mark in ink the face of the title or MCO with the word “SALVAGE” or “NONREPAIRABLE” in letters no less than one-half inch high, at an angle of approximately 45 degrees to the text of the title or MCO. The branding shall not cover the portion of the title or MCO which describes the vehicle.

If the vehicle is a nonrepairable vehicle, the owner may not transfer ownership to any person who is not a licensed auto recycler.

The transferor shall submit a copy of the branded title or MCO to the motor vehicle division. If the title or MCO had not previously been branded with the word “SALVAGE” or “NON-REPAIRABLE,” the transferor shall submit with the title or MCO a written explanation explaining the reason for the branding.


Sale to and repurchase from insurance company

In situations where an insurance company takes title to a salvage vehicle and the vehicle is bought back from the insurance company by the original owner, taxes and title fees apply. Clerk will process as a title change. Vehicle must be branded as “SALVAGE.” Applicant must complete the “Vehicle Equipment Affirmation” form (MVD-10053). If license plate was damaged issue a new plate and prorate current registration.


Vehicle not the subject of an insurance settlement

If a nonrepairable vehicle is not the subject of an insurance settlement, the owner shall, within 20 days from the date of the loss, forward a properly endorsed Certificate of Title or MCO, together with the proper fee to the department, and the department shall issue a nonrepairable vehicle certificate for the vehicle.

 

Section F: Salvage Certificate of Title or Reconditioned Title

Revised November 27, 2017

Any time a vehicle is transferred and the original document is a Certificate of Title branded as “SALVAGE,” all subsequent titles issued must be branded and stamped “Salvage.” 
 

“Reconditioned” title

Some other states issue a “Reconditioned” title that is equivalent to our “Salvage” title, and is a negotiable title. Upon transfer of title and registration of a vehicle that has a "Reconditioned" title, enter "Salvage" in the “brand” block.
 

Salvage Certificate

Other states also issue a “Salvage Certificate” to show ownership. This document serves to cancel the original title until the vehicle is made roadworthy. The vehicle must be inspected, and a “Reconditioned Title” issued, in the state of issue, before a New Mexico title can be issued.

 

Section G: Multiple Records, Multiple VINs

Revised December 1, 2017

Multiple Records with the Same VIN

When Search results for a vehicle, trailer or manufactured home return multiple records with the same VIN, the MVD CSR should view all records and match the VIN and information on the record to the VIN and information on the Certificate of Title.

Vehicles with Multiple VINs

A “first-time” vehicle that has the same VIN as one in Tapestry cannot be processed normally.

  • A VIN inspection will be required for all multiple-VIN title transactions the first time they occur in Tapestry – even for New Mexico titles. This is to ensure that any converted VIN-related data is accurate for the vehicle involved in the transaction.
     
  • If it is a 17-digit VIN one of the two vehicles is in error. If the VIN error is the vehicle in Tapestry, it must be corrected through the Vehicle Error Resolution Unit. If the VIN from the out-of-state vehicle is in error the correction should be done in that state in order to maintain the history of the vehicle.
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