Salvage

Salvage Title Definition

C.R.S. 42-6-102(17)(a)(b)(c)(17)(a) “Salvage vehicle” means a vehicle that is damaged by collision, fire, flood, accident, trespass, or other occurrence, excluding hail damage, to the extent that the cost of repairing the vehicle to a roadworthy condition and for legal operation on the highways exceeds the vehicle’s retail fair market value immediately prior to such damage, as determined by the person who owns the vehicle at the time of such occurrence or by the insurer or other person acting on behalf of such owner. (17) (b) In assessing whether a vehicle is a “salvage vehicle” under this section, the retail fair market value shall be determined by reference to sources generally accepted within the insurance industry including price guide books, dealer quotations, computerized valuation services, newspaper advertisements, and certified appraisals, taking into account the condition of the vehicle prior to the damage. When assessing the repairs, the assessor shall consider the actual retail cost of the needed parts and the reasonable and customary labor rates for needed labor.

Salvage Title

  • A Salvage Certificate of Title is an ownership document to a vehicle that is damaged in excess of the retail fair market value.

  • DR 2410 The Application for a Salvage Title must include type of damage resulting in salvage (excluding hail damage), and the application must indicate that the vehicle is damaged in excess of fair market value.

  • The Salvage Certificate of Title may be printed by the County Motor Vehicle office. If a salvage title is lost, a duplicate salvage title may be issued.

  • Multiple assignments of a salvage title are allowed only by a licensed dealer. Individuals must establish title to a salvage vehicle before transferring the vehicle.

  • County collects any applicable sales and use taxes when vehicle owner applies for a salvage title.

  • Ownership tax is collected from the date of sale, not the date the vehicle was made roadworthy.

  • Salvage vehicles are subject to the odometer disclosure requirements of the Truth in Mileage Act (see Odometer, Truth in Mileage Act).


Salvage Title Limitations

  • Vehicles cannot be registered.

  • Liens cannot be filed.

  • Other states may not accept Colorado Salvage Title as proof of ownership.

  • A dealer cannot transfer a salvage vehicle using the DR 2407 Dealer Bill of Sale. This form is used only for transferring roadworthy vehicles.


Documents Required for Issuing A Salvage Title

Issuance of a salvage title (Cannot issue salvage title on Manufactured Home)

A DR 2410 Application for Salvage Title and one of the following supporting documents are required:

  • An MSO properly assigned to the applicant.

  • A Colorado title properly assigned with all liens released.

  • Salvage title, (out-of-state acceptable), properly assigned.

  • Out-of-state title properly assigned with all liens released.

  • A current registration from a non-title state (see Applying for Title, Non- Titling States).

  • Tow Bill (DR 2008, or DR 2008A and DR 2173) if vehicle is appraised for over $350 (see Abandoned Vehicle, Public Tow).

  • Surety Bond (see Bonds).

  • Court Order (see Court Order).

  • Repair Shop (see Abandoned Vehicle, Repair Shop).

  • Appropriate Bill of Sale from government agency (see Vehicles Sold by Government Agencies).


Sales Tax Due

County collects applicable sales and use taxes when vehicle owner applies for a salvage title.

Note: Verification of Vehicle Identification Number is not required when an out-of-state ownership document is being surrendered.

OHVs are not branded in Colorado.

Establishing Roadworthy Title by Salvage Title

An owner that has made a salvaged vehicle roadworthy must establish a roadworthy title that will be branded with “Rebuilt from Salvage” to indicate that it was previously a salvaged vehicle. Titles issued before January 1, 2003 were branded with an *S.*

The instructions for titling a salvage vehicle are indicated on checklist DR 2415. The following documents and procedures are required:

  • A Colorado Salvage Title, Salvage Receipt, or out-of-state salvage title document properly assigned to the owner and notarized (if notarization required); or

  • Tow Bill of Sale

    • When the record search indicates that the vehicle currently has a salvage title, but the vehicle appears to have been repaired, the tow operator must write “Salvage” on the DR 2173 Motor Vehicle Bill of Sale and provide to the buyer a DR 2444 Statement of Fact indicating that the vehicle was “Purchased as an abandoned vehicle and that no repairs were done”.

    • The buyer will then follow the procedure to apply for a roadworthy vehicle title. When completing the DR 2424 Salvage Title Statement of Fact, the reason for salvage is “unknown, purchased as an abandoned vehicle”.

  • DR 2424 Salvage Title Statement of Fact completed by the applicant and verified and signed by a Certified VIN Inspector. This statement states procedures and parts used to restore such vehicle and must declare the vehicle to be roadworthy.

  • Receipts for major items or parts used in the repair (verified by the Certified VIN Inspector and returned to the customer).

  • Prior to the Certified VIN Inspection, the applicant shall purchase a tool and dye kit and stamp into the motor vehicle the words “REBUILT FROM SALVAGE” with each letter being not less than one-fourth inch in size. Such words shall be a salvage brand and be stamped in the following locations CRS 42-6-136(3)(b)(II).

    • Motorcycle, on the frame in a visible location.

    • Class A motorhome, on the main entrance door jam.

    • Trailer, adjacent to the public vehicle identification number.

    • All other motor vehicles, on the body post to which the driver’s door latches, also known as the Driver’s door B pillar.

  • DR 2704 Certified VIN Inspection performed by a certified law enforcement officer.

  • The front of Colorado Salvage Title must be signed by the owner/buyer to indicate that the vehicle is roadworthy.


Rebuilt from Salvage Branded Titles

DR 2710 Branded Title Disclosure is required with any transfer of ownership for a vehicle that is branded as “Rebuilt from Salvage.”

  • When the seller is not available to provide a DR 2710 Branded Title Disclosure form to the buyer, the buyer will be required to request a salvage history from the Department to determine the cause of salvage.

    • If the salvage history does not provide the repairs completed to make the vehicle roadworthy, the DR 2710 Branded Title Disclosure form will need to indicate the reason for salvage as “Unknown”. The redacted results of the search must also be provided as part of the paperwork to the county for application for title.

  • When an Abandoned Vehicle record search indicates that the vehicle was “Rebuilt from Salvage”, the tow operator or law enforcement agency is required to determine the repairs completed to make the vehicle roadworthy. The tow operator of law enforcement agency must provide to the buyer the DR 2710 Branded Title Disclosure form. A salvage history will need to be completed.


If the salvage history does not provide the repairs completed to make the vehicle roadworthy, the tow operator or law enforcement agency will complete the DR 2710 Branded Title Disclosure form and indicate the reason for salvage as “Unknown.” The redacted results of the salvage history must also be provided to the buyer.

Note: An out-of- state dismantling/ junking document is not acceptable.

Note: As of October 1, 1990, when a vehicle was made roadworthy and issued a Certificate of Title, the title and ALL SUBSEQUENT titles to the vehicle indicated the previous salvage with an *S* brand. Titles issued after January 1, 2003 are branded “Rebuilt from Salvage” (CRS 42-6-136(3)).

Note: Out-of-state salvage titles made roadworthy must be branded “Rebuilt from Salvage”. This brand is entered into the computer system by the county motor vehicle personnel if it is not already in NMVTIS i.e. Kansas does not report to NMVTIS