[Vtr-tac] Salvage Vehicle Dealers - Titles and Temporary Tags

Electronic Distribution of VTR Information to Texas Counties vtr-tac at dot.state.tx.us
Thu Dec 18 10:15:10 CST 2008

Please review and distribute as appropriate.

We recently received questions concerning Salvage Vehicle Dealers and
wanted to remind you about restrictions that these dealers have
concerning titles and temporary tags.

As background, the Occupations Code Sec. 2302.103, *Application for
Salvage Vehicle Dealer License*, allows application for a Salvage
Vehicle Dealer*s license in one or more of six classifications. Two of
these classifications are *new automobile dealer* and *used
automobile dealer* and may be a source of confusion as they are
printed on the Salvage Vehicle Dealer*s license.  These
classifications do not give the Salvage Vehicle Dealer any of the rights
of a licensed Franchise (new) or Independent (used) Motor Vehicle
Dealer.  The Salvage Vehicle Dealer*s license number can be
distinguished from Franchise and Independent Motor Vehicle Dealer*s
license number in that the Motor Vehicle Dealer*s number starts with
an alphabetic character, while the Salvage Vehicle Dealer*s license
will start with the 3-digit numeric county code.

A Salvage Vehicle Dealer license does not permit them to sell regular
motor vehicles (vehicles not titled by salvage or nonrepairable
ownership documents).  Examples include motor vehicles that are titled
(1)	regular (blue) Texas Certificates of Title;
(2)	regular out-of-state certificates of title; or
(3)	Auction Sales Receipts (Form VTR-71-1).

A Salvage Vehicle Dealer license only permits them to sell motor
vehicles that are titled by:
(1)	Salvage Certificates;
(2)	Salvage and Nonrepairable Certificates of Title;
(3)	Salvage and Nonrepairable Vehicle Titles; and
(4)	Certificates of Authority; or
(5)	comparable out-of-state ownership documents.

Salvage Vehicle Dealers have never been authorized to issue dealer
temporary tags. Current law does not allow a vehicle issued a salvage
title to be operated or even towed on the road.  There are no

A salvage vehicle dealer has submitted a request to VTR for access to
the Dealer e-Tag system.  We believe this was due to the salvage
dealer*s misunderstanding of the salvage dealer*s
*classification* as a *used automobile dealer* on their
license.  In the past some Salvage Vehicle Dealers have been able to
obtain buyer's and dealer's temporary tags from printers using their
license which had the classification of *used automobile dealer*. 
The new Dealer e-Tag system should help stop these violations.

If you have any questions or need any additional information please
contact your local Vehicle Titles and Registration Division Regional



If you have any comments or suggestions concerning this VTR
communication process, please contact your local VTR Regional Office.

If you would like to see previous postings from the "VTR Electronic
Archives," please visit
http://extlists.dot.state.tx.us/pipermail/vtr-tac/ .

Rebecca Davio
Vehicle Titles and Registration Division, TxDOT
Telephone: (512) 465-7570
FAX: (512) 467-5909
Email: rdavio at dot.state.tx.us 
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