Chapter 9 – Reconstructed, Rebuilt, Salvage and Nonrepairable Vehicles

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.”

Requirements

1. The insurance company or its authorized agent shall obtain the title or manufacturer’s certificate of origin (MCO) for the vehicle and verify that the document is in the name of the former owner.

NOTE: If you are an authorized agent, please present a Power of Attorney from the insurance company. Below is the requirement for Power of Attorney

2. The former owner or the former owner’s authorized agent shall sign the title or MCO on the seller’s release line. If a business was the former owner, the name of the business must appear with the signature of the business’s owner, officer or agent.
3. The name of the insurance company shall be entered in the purchaser section of the title or MCO.
4. The insurance company shall apply for a salvage title or non-repairable certificate in its name before transferring title to the vehicle.
5. The insurance company shall submit the endorsed title or 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”.

Power of Attorney (POA)

General or Limited:

1. Must be notarized;
2. Owner must sign in ink;
3. Certified copies of POA may be accepted;
4. If notary’s commission expires, POA remains active until rescinded by owner;
5. POA cannot be used to execute any transaction after death of grantor;
6. Dealers MUST use a secure POA ONLY;
7. Proof of ID for Owner’s Representative (Motor Vehicle photo ID card or license).

NOTE: A Person appointed with a Power of Attorney CANNOT assign their authority by Power of Attorney to another individual.

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 September 10, 2021

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

NM MVD refuses the issuance of a NM title to a vehicle with a Salvage Certificate under

NMSA 1978, Section 66-3-7B “the vehicle is unfit or unsafe to be operated or moved upon the

highways”

Both Salvage Title and Salvage Certificate can be used to identify a vehicle’s branding and other vehicle information. The difference between a Salvage Certificate and Salvage Title is that a vehicle  issued a Salvage Certificate  may not be operated on public roadways, while a vehicle  issued a Salvage Title  can. Converting a Salvage Certificate to a Salvage Title requires a safety inspection from a certified safety inspection station and a VIN (vehicle identification number) verification from an authorized VIN verification agency. NM has no certified safety inspection station programs.

NM MVD may issue a Non-Repairable Vehicle Certificate. By doing so, the owner will not be able to register the vehicle for use on roads and highways and would only be able to sell the vehicle to a licensed dismantler.

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.

Section H: Assigned VINs for Stolen Recovered Vehicles with no P VIN and Other Acceptable Law Enforcement Purposes

1. The certified Level 3 VIN inspector will email to the Dealers Services Bureau (DSB) a VIN inspection form to request the assignment of a NM Assigned VIN foil tag. The VIN inspection form request must contain the owners name, year, make, chassis VIN, and in the notes a reason for the request.
2. If the VIN inspection form request is complete and accurate, DSB will assign the vehicle a NM Assigned VIN and send the corresponding NM assigned VIN foil tag to the certified Level 3 VIN inspector via trackable mail delivery.
3. The certified Level 3 VIN inspector will attach the foil tag to the vehicle and complete a Level 3 VIN inspection. The Level 3 VIN inspection must include a police report number in the notes.
4. The certified Level 3 VIN inspector will email the completed Level 3 VIN inspection form to DSB. The email must include what MVD office the customer will be going to. The inspector will inform the owner to take the vehicle and the title to the vehicle to that MVD office.
5. The customer will bring the vehicle and title to the vehicle to the MVD field office where an MVD agent will verify the assigned VIN has been attached correctly.
6. Upon verifying that the customer has met all requirements, the MVD agent will issue a certificate of title with the NM assigned VIN as secondary VIN and the chassis VIN as primary VIN.
7. The current contact information for DSB is;

John Webb
Investigator
State of New Mexico, Motor Vehicle Division
Email: john.webb@tax.nm.gov
Office: 505-383-2370 Fax: 505-383-2372
Mobile: 505-699-2727

8. This process is not for homemade or reconstructed vehicles. For information on NM assigned VINs for homemade or reconstructed vehicles go to chapter 9 section A.