Understanding Minnesota Used Car Salvage Laws

Minnesota used car salvage laws are essential in the growing industry of auto salvage. With the rapid growth of this industry comes the ever growing opportunity for unscrupulous individuals to enter it to try to make a quick buck. The laws in this industry protect the dealers as well as the buyers by enforcing strict regulations to which both parties must adhere as well as by encouraging good business practices on the dealers end and good buyer practices for consumers.

Declaring a car as salvage in Minnesota

To declare a car as salvage one of four criteria must be met;

1. The car be damaged to the point where the insurance company thinks it will cost too much money to repair it thus they declare it as "repairable total loss".

2. The car must have been worth a minimum of $5,000.00 before it sustained damage.

3. The car must have been less than six years old when the damage was sustained.

4. The car must be in the 26,000 pounds weight class.

This declaration of salvage comes from the Minnesota Driver and Vehicle Services and is handed out based on the report presented by the insurance company.

Laws for salvage sales protecting consumers

The Minnesota Driver and Vehicle Services clearly points out that flood damaged or even hurricane damaged cars are not necessarily issued salvage titles, thus it is necessary for consumers to watch out for these cars at salvage yards. They will not run properly or for any significant length of time hence the money you spent will be in vain.

The salvage titles are a way of protecting the consumer since cars with these titles cannot be legally in operation on the roads. Before a car with a salvage title can be operational it first needs to be repaired and then an application needs to be made to the Minnesota Driver and Vehicle Services for the issuing of a new title. This is set in place so that the consumer knows for a fact they are buying a salvage title car.

In addition to strict regulations for consumer protection the Minnesota Driver and Vehicle Services encourages the consumer to educate themselves about purchasing salvage vehicles. It is important that each buyer perform his/her own history checks on their potential car.

Salvage laws in Minnesota uphold stringent policies and ensure that a highly regulated salvage industry is run. This regulation not only protects the consumers but also the legitimate dealers from losing business due to scammers.



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