In most instances, selling a damaged vehicle after an accident in Arizona is possible. However, the proper procedure will rely on how you hold the title, whether you have a pending insurance claim, if a creditor is involved with the vehicle, and whether the vehicle can be classified as salvage or nonrepairable.
Before getting ready to sell, verify who currently owns the vehicle, what paperwork goes with that title, and what damages need to be disclosed.
You can sell a car that has been involved in an accident in Arizona, but this will depend on the title of the car, insurance matters, and any unpaid loans on it. In order to sell the car, the seller must complete the transfer of title correctly, explain whether or not the vehicle is salvage, and comply with the regulations of Arizona’s department of motor vehicles.
Can You Sell the Car Before the Insurance Claim Is Finished?
It may not be wise to sell your vehicle immediately after it is involved in an accident while you still have to deal with the insurance. This is because the insurance company will need to inspect the vehicle, assess the damages, and determine whether or not the accident was the fault of the driver. The company would also want to handle the claim when necessary by taking pictures of the vehicle alongside the damages.
Selling or dismantling the vehicle prior to receiving approval from the insurance company will only complicate your case. It is advisable that you contact the insurance provider before making a decision to sell or dismantle the vehicle. Keep enough photographs, records of towing the vehicle, and necessary notes. Occasionally, you could arrange to hold the vehicle through owner-retained salvage. Normally, the insurance company subtracts the salvage amount from the compensation sum. Before you may receive the total loss payment or make the vehicle go, Arizona title procedures have to be followed in full.
Determine the Vehicle’s Title Status
Being damaged is not enough to assume the car has a salvage title. Under state law, a salvage vehicle is a damaged vehicle, except for a nonrepairable vehicle, that the owner, insurer, or lender considers uneconomical to repair.
Most likely, it will fall under one of three categories:
- Regular title means that you are allowed to sell the damaged vehicle using the regular title transfer process. Even if it does not bear the salvage label, make sure that you tell the truth about the accident and describe the car correctly.
- Salvage title means that it can be sold as damaged for rebuilding, for parts, or for scrap metal, while it cannot undergo a registration process at the moment. It is permitted by Arizona rules to sell salvage vehicles.
- Nonrepairable title means that the car has no resale value except for parts or scrap metal.
You Must Disclose a Salvage Title
According to Arizona law, if a seller has knowledge of the issuance of a salvage certificate, he must disclose this information to the buyer in writing or electronically before completing the sale.
The disclosure must state that the vehicle is a salvage vehicle and has a salvage certificate of title.
The fact that the agreement has an as-is clause does not excuse the seller from his obligations toward prospective buyers.
What If the Car Has a Loan?
A lien has to be removed before the title can be transferred to a buyer. The seller must contact the lender and find out the amount to pay off the loan. In most cases, if the sale price is less than what is owed on the loan, a seller is expected to cover the difference.
How to Complete the Sale
After the claim, the title class, and the liens are sorted out, the seller:
- transfers the title through AZ MVD Now or signs the paper copy,
- hands over the bill of sale,
- removes the license plate, and
- files a Sold Notice with Arizona MVD.
ADOT recommends to complete the transaction as soon as possible.
Can You Repair the Car Before Selling It?
Yes, you may restore the vehicle and apply for a restored salvage title, which takes:
- repairs to roadworthy condition,
- a Level III inspection,
- an emissions certificate when it applies, and
- the title and registration fees.
In addition, even though the car is restored repair will not affect its initial status as a salvage vehicle.
The Bottom Line
In Arizona it is possible to sell a salvage vehicle. However, to make sure there will be no obligations in regards to title ownership the seller has to contact the insurance representative for advice.
