Vehicle Industry Registration Procedures Manual

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Section 20 of 38

Chapter 19: Salvage – Nonrepairable – Junk Vehicles

19.085 Sold by a Public Agency or Auctioneer (VC §24007.5)

An auctioneer or public agency cannot sell any new or used vehicle at public auction that is not in compliance with the provisions of the California Vehicle Code (VC).

Exceptions—This does not apply to vehicles sold:

  • To a dealer.
  • For the purpose of being wrecked or dismantled.
  • Exclusively for off-highway use.
  • Pursuant to a writ of execution or court order including, but not limited to, a bankruptcy sale.
  • At lien sale, if the lienholder submits a Notice of Transfer and Release of Liability (REG 138) form as specified in VC §5900 (a,b) and notifies the buyer in writing that a smog certification is required to register the vehicle.
  • By a public utility or public agency when it is deemed the cost of repairs to a vehicle exceeds the value of the vehicle. A public utility is defined as any common carrier, electrical, gas, pipeline, sewer, telegraph, telephone, toll bridge, or water corporation where the service is performed for, or the commodity delivered to, the public or any portion thereof (PUC §216).

Not all vehicles sold by public agencies fall under VC §24007.5, such as vehicles that are of higher value or are a total loss salvage. It is the public agency’s responsibility to identify the type of each application and to submit the appropriate paperwork.

The inspection fee for a revived junk or salvage vehicle application must be paid prior to the vehicle inspection/verification.

The Verification of Vehicle (REG 31) form or an additional verification of vehicle is not required when a California Highway Patrol (CHP) CHP Certificate Inspection (CHP 97C) form is submitted on a revived junk or salvage vehicle application.

The public utility/agency must:

  • Submit the following to mark the vehicle record as junk:
    • The certificate of title.
    • The registration card.
    • The license plates.
  • Provide each bidder with a notice in writing that a smog certification is required before the vehicle may be reregistered, unless it is dismantled or used exclusively off-highway
  • Give the purchaser a bill of sale showing the vehicle description and last issued license number. The vehicle is reregistered as a revived junk.

When selling a vehicle that meets safety and equipment standards, the public utility, public agency, or auctioneer delivers the certificate of title and registration card to the buyer.

The buyer must submit:

  • A completed Application for Title or Registration (REG 343) form. The cost information must include the labor cost, even if the labor was provided or done by the applicant. The vehicle license fee (VLF) class is based on the cost shown.
  • A REG 31 form. Previously junked vehicles (California or nonresident) must be inspected by an authorized DMV employee or referred to CHP for inspection.
  • The “junk” receipt or a bill of sale from the dismantler. A dismantler’s bill of sale must include the dismantler’s acquisition number.
  • Bill(s) of sale, as necessary, to establish a complete chain of ownership.
  • A Vehicle/Vessel Transfer and Reassignment Form (REG 262) for odometer disclosure statement, if applicable.
  • A Declaration of Gross Vehicle Weight (GVW)/Combined Gross Vehicle Weight(CGW) (REG 4008) form for a commercial vehicle over 6,001 pounds unladen, except pickups.
  • Official brake and light adjustment certificates,
    • Certificate of Compliance-Brake Adjustment (B-91, REV. 4/99) and Certificate of Compliance-Lamp Adjustment (L-91, REV. 4/99) with any issue date.These forms are printed on dotted gray paper with “BA” (brake) and “LA” (lamp) prefixes in the certificate numbers.
    • Certificate of Adjustment-Brake Adjustment (B-91, REV. 11/08) and Certificate of Adjustment-Lamp Adjustment (L-91, REV. 11/08) issued before November 30, 2015. These forms are printed on plain white paper with “BC” (brake) and “LC” (lamp) prefixes in the certificate numbers.

Brake and lamp certificates REV. 11/08 presented with an issue date after November 29, 2015 will not be accepted. The technician must advise the customer the certificate is not valid and a new certificate is required.

  • Except on trailers 3,000 pounds or less GVW. When an official brake and light station that inspects specific vehicles, such as motorcycles and large commercial vehicles, is not located within a reasonable distance, accept a Statement of Facts (REG 256) form from a repair shop stating that the brakes and lights are in proper working order.
  • A weight certificate for a commercial vehicle under 10,001 pounds GVW (6,001 unladen pounds). If the vehicle is over 10,000 pounds GVW or a permanent trailer identification (PTI) trailer, the estimated weight may be shown on a Statement of Facts (REG 256) form.
  • A smog certification, if appropriate.
  • All fees due.

For government sales, the General Services Administration issues a Certificate of Release (Standard Form 97) for all vehicles that are sold. For those that do not meet safety requirements, the Standard Form 97 is stamped “NOT FOR HIGHWAY USE.”

The procedures below must be followed:

  • Collect the $50 junk and salvage vehicle inspection fee prior to a vehicle inspection/verification. (this fee should also be collected prior to inspection on out of state vehicle applications)
  • Do not require a REG 31 or additional verification when a vehicle is referred to CHP or a CHP 97C is submitted.
  • Process the application as a transfer from exempt to fee paid.