What is Salvage title? US States Rebuilt Title Rules

Car Rebuilding and Title Rules for Colorado

By Mike Richards Updated: 01/31/2023 Posted: 10/28/2015

Many owners and buyers in Colorado choose to rebuild salvage vehicles and get them back on the road, depending on the severity of the damage and the type of damage.

Getting a Salvage Title and Car Insurance for Your Vehicle in Denver, Colorado

The first part of the process is getting a salvage title for the vehicle, if you do not have one already. In some cases, such as buying a vehicle with a salvage title, you only have to transfer the title to your name.

If you need a salvage title, though, the Colorado DMV requires that you fill out an Application for a Salvage Certificate of Title, which requires that you provide information about the vehicle and why it is not roadworthy and deserves a salvage title.

After completing and submitting the form, you will receive a salvage title from the state. Having a salvage title will allow you to sell the vehicle without making any repairs if you choose. However, many choose to rebuild the vehicle instead.


Rebuilding and Getting a New Salvage Title

You need to make sure that you have the vehicle rebuilt so that it is once again roadworthy. This will often require that you have a number of replacement parts for the vehicle, and it is essential that you keep all the receipts and bills of sale for these parts, so the state knows where they came from and can be certain they have not been stolen.

After you rebuild the vehicle, you will need to complete Form DR 2424, the Salvage Title Statement of Fact. This Colorado form requires information about the parts used in the salvaged vehicle, as well as the methods used for repairing the vehicle into working and operable condition. On the salvage title, you will need to sign that the vehicle is roadworthy.

One of the things that make Colorado different from many states is that they require that the word “Rebuilt from Salvage” appear on the vehicle in letters that are at least a quarter inch high or greater. Most of the time, the letters will be stamped or etched into the area where the driver’s door connects to the body of the vehicle, making it easily noticeable for those who are potentially purchasing the vehicle in the future.

The vehicle will also need to go through an inspection, which currently has a fee of $20. A law enforcement officer will need to provide you with a Verification of Vehicle Identification Number form (DR 2698). You can contact your local motor vehicle office to find the closest inspection locations for salvage cars in your area.

Once complete, you will need to bring all the forms, along with the inspection approval and the receipts for the parts to the title and registration office. Then, you can get the rebuilt title and register the vehicle.

The new title will have the words “Rebuilt from Salvage” on it. Once again, this is to ensure that any future buyers of the vehicle are well aware of what they are purchasing.

If you decide to sell the vehicle, you will need to fill out a Rebuilt from Salvage Disclosure Form (DR 2710) and give it to the new buyer, who will then take it to the motor vehicle office when they are transferring the title to their name.

Find information on Rebuilt Title Laws for Other US States. Explore our Vehicle Auctions and Buying With Us.