Rule Changes Affecting Salvage Motor Vehicle Dealers

On December 9th, 2015, the new salvage rules went into effect. The rules, located in 43 TAC Chapter 221, define for the first time the salvage dealer license endorsements, and clarify premises, records, and consumer disclosure requirements. The new rules also clearly state that salvage titled vehicles that have been rebuilt by the salvage dealer, the dealer will be required to hold a motor vehicle license (GDN) to sell the vehicle.

When a salvage dealer(s) completes rebuilding the vehicle, the dealer will surrender the salvage title and properly complete a rebuilt affidavit (VTR-61) and submit the salvage title and affidavit to the local County TAC to request a title only in the name of the GDN license before offering the vehicle for sale.

 

References:

Title 43 Texas Administration Code Chapter 221

Rule 221.2

Definition: Salvage vehicle rebuilder endorsement

                Used Automobile dealer endorsement

 

221.11

License and endorsement required

Texas Transportation Code Chapter 548

 

43 TAC Chapter 221

Rule 221.2 Definitions

(27) Salvage vehicle rebuilder endorsement–An endorsement on the salvage dealer license issued by the department that allows the license holder to acquire and repair, rebuild, or reconstruct for operation on a public highway more than five salvage motor vehicles in a calendar year.

(29) Used automobile dealer endorsement–An endorsement on the salvage vehicle dealer license issued by the department that allows the license holder to buy or sell salvage motor vehicles and non-repairable motor vehicles that have been the subject of a retail sale. 

 

Rule 221.11 License and Endorsement Required

(a) The department shall issue a salvage vehicle dealer license with one or more endorsements to that license according to the type of activities intended to be engaged in by the applicant.

(b) A salvage vehicle dealer license may not be issued by the department without at least one of the following endorsements to that salvage vehicle dealer license:

     (1) new automobile dealer endorsement;

     (2) used automobile dealer endorsement;

     (3) salvage pool operator endorsement;

     (4) salvage vehicle broker endorsement; or

     (5) salvage vehicle rebuilder endorsement.

(d) A person may not engage in the business of buying, selling or exchanging motor vehicles that can be titled to operate on public highways, including selling a salvage motor vehicle that has been rebuilt, repaired or reconstructed, unless the person also holds a general distinguishing number issued by the department under Transportation Code, Chapter 503.

(e) A person holding a salvage vehicle dealer license with a used automobile dealer endorsement may rebuild, repair or reconstruct no more than five (5) salvage motor vehicles during a calendar year. The person may sell those rebuilt vehicles, provided the salvage vehicle dealer also holds a general distinguishing number issued by the department under Transportation Code, Chapter 503.

 

Texas Transportation Code Chapter 548

Sec. 548.052. VEHICLES NOT SUBJECT TO INSPECTION. This chapter does not apply to:

(1) a trailer, semitrailer, pole trailer, or mobile home moving under or bearing a current factory-delivery license plate or current in-transit license plate;

(2) a vehicle moving under or bearing a paper dealer in-transit tag, machinery license, disaster license, parade license, prorate tab, one-trip permit, vehicle temporary transit permit, antique license, custom vehicle license, street rod license, temporary 24-hour permit, or permit license;

(3) a trailer, semitrailer, pole trailer, or mobile home having an actual gross weight or registered gross weight of 4,500 pounds or less;

(4) farm machinery, road-building equipment, a farm trailer, or a vehicle required to display a slow-moving-vehicle emblem under Section 547.703;

(5) a former military vehicle, as defined by Section 504.502;

(6) a vehicle qualified for a tax exemption under Section 152.092, Tax Code; or

(7) a vehicle for which a certificate of title has been issued but that is not required to be registered.

 

 

 

 

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