19.030 Junking a Vehicle—Individual (VC §11520)

Individuals not licensed as dismantlers can junk and/or dismantle a vehicle. The requirements to “junk” a vehicle are essentially the same requirements needed to register and/or transfer a vehicle. However, vehicles transferred for the purpose of being wrecked or dismantled (junk) are exempt from the smog inspection requirement.

Prior to dismantling a vehicle, the vehicle owner must submit an application to DMV to record the vehicle as “Junk.” When an owner dismantles a vehicle prior to doing this, the owner is subject to an investigative service fee.

The following must be submitted:

• The evidence of ownership for the vehicle. The applicant may not be the registered owner listed on the California Certificate of Title because the vehicle has not been transferred or registered in the applicant’s name. In such cases, the applicant must present the documents needed to record the applicant as the registered owner. This may be any of the following:
  • The California Certificate of Title properly endorsed for transfer.
  • Lien sale documents properly executed for registration and transfer.
  • A salvage certificate properly endorsed for transfer.
  • Nonresident vehicle registration and transfer clearance requirements listed in Chapter 12.
  • Unavailable vehicle registration clearance requirements.Bills of sale, as needed, to complete the chain of ownership. Bills of sale may be accepted in lieu of signatures on the title.
• Other documentation, if the required evidence of ownership cannot be obtained.
  If the vehicle value is:

• $5,000 or more, a motor vehicle bond is required.
• Less than $5,000, the diligent effort/bond is not required and the applicant must submit: Any documentation that establishes ownership of the described vehicle, a Statement of Facts (REG 256) form from the applicant stating: from whom the vehicle was acquired, the current value of the vehicle and that the vehicle is free of liens, not indicated on the application.

Refer to Chapter 23 for bond/diligent effort information.

Note Documents received at a later date must be surrendered to DMV with a REG 256 form.

• The license plates assigned to the vehicle. Exception: An off-highway vehicle (OHV) identification plate does not need to be surrendered.
• A Certificate of Excise Tax Clearance (BOE 1138) form issued by the California Board of Equalization for commercial vehicles weighing more than 7,000 pounds unladen, powered by fuel other than gasoline or diesel (CR&TC§8995).
• All fees and use tax due. Refer to Chapter 4 for use tax information.

The procedure below must be followed:

• The applicant must remove and destroy any Clean Air Vehicle decals on the
  vehicle.

19.025 Junking a Vehicle—Dismantler (VC §11520)

A vehicle can be dismantled:

• Ten days after the Dismantlers Notice of Acquisition (REG 42-bottom portion) is mailed to DMV.
• Any time after the Report of Vehicle to be Dismantled (REG 42-upper portion), evidence of ownership, license plates, or Dismantler’s Notice of License Plate Destruction are delivered to DMV.
• Immediately, if the vehicle:
  • Is acquired from a city or county under a local abatement program (VC §§22660 and 22664).
  • Already has a “junk” status on DMV’s record.

The following must be submitted:

• The original and duplicate copy of the Report of Vehicle to be Dismantled (REG 42) form.
• The evidence of ownership.
• The last-issued license plate(s) or the Dismantler’s Notice of License Plate Destruction (REG 42) form.
• A Board of Equalization Certificate of Excise Tax Clearance (BOE 1138) form for commercial vehicles with unladen weight of more than 7,000 pounds powered by fuel other than gasoline or diesel (CR&TC §§8608 & 8995).
• Dismantlers are exempt from odometer disclosure reporting. However, include any that are submitted.

Registration and/or transfer fees are not due from a licensed dismantler. However, do not refund any fees that have already been paid.

The procedures below must be followed:

• DMV will validate the duplicate copy of the REG 42 by line date stamping the front of the form.
• Retain the validated copy as proof of reporting and authority to dismantle the vehicle.
• Do not refund fees on file.

19.020 Duplicate Salvage or Nonrepairable Vehicle Certificate

When the DMV’s records show that a salvage certificate was issued for a vehicle, but it has been lost, stolen, or mutilated to the extent that essential information is no longer legible, the insurance company or person who applied for the original salvage or nonrepairable vehicle certificate may apply for a duplicate.

The following must be submitted:

• A completed Application for Salvage Certificate or Nonrepairable Vehicle Certificate (REG 488C) form.
• A completed Statement of Facts (REG 256) form which describes the vehicle and certifies to the disposition of the original salvage or nonrepairable vehicle certificate.
• The duplicate fee. Refer to Appendix 1F for fees.

Note The salvage owner will only display on the database when an automated salvage certificate has been issued. The salvage owner is not updated when the salvage certificate is issued manually.

19.015 Definitions

Abated Vehicle (VC §22660)—A vehicle determined to be a public nuisance because it was abandoned, wrecked, dismantled, or inoperative and was removed by ordinance of a city or county.

Junk Vehicle—A junk vehicle is one which has been dismantled because it was wrecked, abandoned, or inoperable.

Nonrepairable Vehicle (VC §431)—A vehicle that meets one of the following criteria and has no resale value except as a source of parts or scrap metal:

• Surgical Strip—A vehicle completely stripped when recovered from theft.
• Complete Burn—A completely burned vehicle.
• Owner Declared—A vehicle irreversibly designated by the owner solely as a source of parts or scrap metal.

Once declared nonrepairable, the vehicle cannot be titled or reregistered.

Nonrevivable Junk—A vehicle valued at $500 or less that was abandoned and the removal and disposal by a licensed dismantler or scrap iron processor was authorized by a peace officer or any designated employee of a public agency (Example: an abated vehicle). Once declared nonrevivable, the vehicle cannot be titled or reregistered.

Owner Retained Total Loss Salvage or Nonrepairable Vehicle (VC §§11515 and 11515.2)—A total loss salvage or nonrepairable vehicle that the owner retains as a portion of the settlement with an insurance company.

Salvage Pool (VC §543)—A person engaged exclusively in the business of disposing of total loss salvage vehicles, nonrepairable vehicles, or recovered stolen vehicles received from, or on behalf of, insurance companies, authorized adjusters, leasing companies, self-insured persons, or financial institutions.

Self-Insurer (VC §16052)—Any person in whose name more than 25 vehicles are registered and who has obtained a Certificate of Self-Insurance (SR 27) from DMV.

Total Loss Salvage Vehicle (VC §544)—A vehicle that has been wrecked, destroyed, or damaged, to the extent that the owner or insurance company considers it uneconomical to repair and, because of this, the vehicle is not repaired for the owner. A salvage certificate is issued instead of an ownership certificate for a total loss salvage vehicle and becomes the ownership document. This certificate can only be issued in the name of the registered owner or insurance company. An unrecovered stolen vehicle is not a total loss salvage vehicle.

19.010 Authority for Cancellation, Suspension, or Revocation (VC §8800)

The Department of Motor Vehicle (DMV) may cancel, suspend, or revoke a vehicle’s registration California Certificate of Title, registration card, license plate, or any permit when the:

• Certificate, license plate, or permit was fraudulently obtained or erroneously issued.
• Vehicle is mechanically unfit or unsafe to be operated or moved on the highways.
• Registered vehicle has been dismantled or wrecked.
• Required fees have not been paid upon reasonable notice and demand.
• Registration card, license plate, or permit is knowingly displayed on a vehicle other than the one for which issued.
• Registration could have been refused when last issued or renewed.
• Minimum liability insurance is not obtained or maintained for the vehicle.
• DMV is so authorized under any other provision of the law.

19.005 Abated Vehicles (VC §§22660, 22661, and 22662)

A city or county may adopt a local ordinance to establish procedures for the abatement and removal of abandoned, wrecked, dismantled, or inoperative vehicles from private or public property. Vehicles removed under a local ordinance must be
disposed of to a licensed dismantler or scrap metal processor.

The public agency acting under the provisions of a local ordinance must within five days of removing a vehicle, the following must be submitted:

• A Notice—Removal of Abandoned Vehicle (REG 104) form.

• Any certificates in their possession.

• The license plates or a certification of license plate destruction.

The procedure below must be followed:

Reregistration—A vehicle removed under a local abatement procedure cannot be titled or reregistered, except those vehicles which qualify for Horseless Carriage or Historical Vehicle License Plates, pursuant to CVC §5004.

Chapter 19 Junk, Salvage, Nonrepairable

19.000 Introduction

This chapter provides procedures for declaring a vehicle as junk, salvage, or nonrepairable and for reregistration of vehicles declared as junk, salvage, or for those which the registration has been cancelled, suspended, or revoked.

Chapter 19: Salvage – Nonrepairable – Junk Vehicles

19.000 Introduction

19.005 Abated Vehicles

19.010 Authority for Cancellation, Suspension, or Revocation

19.015 Definitions

19.020 Duplicate Salvage or Nonrepairable Vehicle Certificate

19.025 Junking a Vehicle—Dismantler

19.030 Junking a Vehicle—Individual

19.035 Nonreceipt of Salvage or Nonrepairable Vehicle Certificate

19.040 Nonrepairable Vehicle Certificate

19.045 Notice of Retention by Owner—Salvage Vehicle

19.050 Removing Salvage Retention Status

19.055 Reregistration of Vehicles Withdrawn From Service

19.060 Revived Junk

19.065 Revived Salvage—California Record

19.070 Revived Salvage—New or Nonresident

19.075 Salvage Certificate

19.080 Salvage Certificate Application With Prior Fees Paid

19.085 Sold by a Public Agency or Auctioneer

19.090 Vehicle Safety System Inspection Program

18.165 Vessel or Vessel and Trailer Combination Valued Over $1,500 (CH&NC §503)

For a vessel valued at $1,501 or more, the lienholder must submit an Application for Lien Sale Authorization and Lienholder’s Certification Vessel or Vessel/Trailer Over $1,500 (BOAT 152) form and the nonrefundable filing fee to:
Department of Motor Vehicles
Lien Sale Section, MS D143
P.O. Box 932317
Sacramento, CA 94232-3170

The REG 152 must contain the vessel’s make, hull identification number (HIN), and state of registration. If it does not have either a California CF number or a HIN, a Vessel Verification (BOAT 111) form completed by a licensed vessel verifier or a law enforcement officer must be submitted with the request.

Note All lien sale notices must specify the make, HIN, CF/license number, state of registration, if available, and the specific date, exact time, and place of sale.

The lien sale process for a vessel or vessel/trailer combination valued over $1,500 is as follows:

Step 1

DMV sends a copy of the BOAT 152 and a return envelope pre-addressed to DMV to the registered and legal owners and any interested parties by mail with a return receipt requested and places a stop on the vessel record. DMV will also notify the lienholder if an outstanding property tax lien has been placed on the vessel.

Step 2

To oppose the sale, a signed Declaration of Opposition must be returned to DMV within 15 days from the date the notice was mailed. If DMV receives a Declaration of Opposition within the allotted time, DMV shall, within 16 days of receipt of the declaration, send a letter denying the lien sale, unless the lienholder files a court action within 60 days of the opposition notice.

The lien sale cannot be conducted unless judgement is issued in favor of the lienholder or the declarant (opposer) releases interest in the vessel. DMV shall promptly authorize the sale if the lienholder attempted service upon the declarant at the address shown on the opposition form and the letter is returned to the lienholder unclaimed.

Step 3

The lienholder may immediately continue with the lien sale process upon receipt of authorization from DMV.

Step 4

At least 10 days, but not more than 30 days, prior to the sale date (not counting the day of sale) the lienholder must give notice of the sale by advertising once in a newspaper of general circulation in the county where the vessel is located. If there is no newspaper published in the county, notice shall be given by posting a notice of sale in three of the most public places in the area in which the vessel is located and at the place of sale for 10 consecutive days prior to and including the day of sale.

Step 5

The lienholder must mail a Notice of Pending Lien Sale for Vessels or Vessel/Trailers Valued at Over $1,500 (BOAT 166) form 20 days prior to the sale (not counting the sale date) with a return receipt requested, to the registered and legal owners of record (if registered in California), any other interested parties, and DMV.

Step 6

The vessel must be available for inspection at a location easily accessible to the public at least one hour before the sale and must be at the place of sale at the specified time and date (CH&NC §506).

Step 7

The lienholder shall conduct the sale in a businesslike manner. Sealed bids are not allowed (CH&NC §506).

Step 8

After the sale, the lienholder must keep the vessel for a 10-day redemption period.

Note If applicable, the license plate on the trailer must be removed and destroyed.

The vessel may be redeemed by the registered or legal owner by paying the amount of the lien, all costs and expenses of the lien, and the interest on the sum at the legal rate from the date thereof until repayment (CH&NC §506.5).

Step 9

Within 15 days of the sale, the lienholder must submit any excess fees with a copy of the Certification of Lien Sale for Vessel or Vessels With Trailers Valued Over $1,500 (BOAT 178) form to the DMV Lien Sale Unit.

For the vessel, the following must be submitted:

• An Application for Registration Number, Certificate of Ownership, and Certificate of Number for Undocumented Vessel (BOAT 101 (PDF)) form.
• A BOAT 178 completed by the lienholder or agent.
• Postal receipts attached to the BOAT 178 (bulk mail receipts are acceptable).
• An authorization letter from DMV, certified copy of the court judgment issued in favor of the lienholder, or release of interest from the declarant (opposer).
• Any bill(s) of sale needed to complete the chain of ownership

Note If a “Delinquent Vs. Tax” message appears on the HQ RESPONSE SINGLE HIT screen, the applicant must submit a Vessel Tax Disposition (BOAT 120) form.

If the BOAT 120 is:

• Submitted, continue processing the application.
• Not submitted, forward the application to the Lien Sale Unit in DMV headquarters for the required BOAT 120.

Refer to Chapter 24 for additional information.

The procedures below must be followed:

• If there is no HIN on the vessel, assign a HIN following instructions in Chapter 24.
• Verify that the 10-day redemption period has passed before clearing the application.
• Give the buyer an ABCs of California Boating booklet.
• If the vessel is motorized, issue one set of Vessel Carbon Monoxide Warning Stickers with the companion brochure and advise the customer to affix the stickers as explained in Chapter 24.
• Forward the application to the Lien Sale Unit in DMV headquarters, if the proceeds of the sale exceed the amount of the lien.

For the trailer if any, the following must be submitted:

• A completed Application for Title and Registration (REG 343 (PDF)) form.
• If there is no record on file for the trailer , a Verification of Vehicle (REG 31 (PDF)) form.
• Items previously indicated for vessel clearance. Photocopies are acceptable.
• If a title is requested, a Permanent Trailer Identification (PTI) Certification (REG 4017 (PDF)) form.

18.160 Vessel or Vessel and Trailer Combination Valued at $1,500 or Less (CH&NC §504 and 507)

DMV must promptly furnish the lienholder with the names and addresses of the owner(s) of record upon receipt of an Information Request from Registration Records (INF 1126) (PDF) and the nonrefundable filing fee.

• An Application for Lien Sale Authorization and Lienholder’s Certification Vessel or Vessel/Trailer Valued Over $1500 (BOAT 152) (PDF).
• A written statement from a licensed yacht and ship broker showing the fair market value of the vessel obtained within 30 days of submission.
• A copy of the DMV printout or the nonrefundable filing fee for a printout, to:
  Department of Motor Vehicles
  Lien Sale Section, MS D143
  PO Box 932317
  Sacramento, CA 93232-3170

The lien sale process for a vessel or vessel/trailer combination valued at $1,500 or less is as follows:

Step 1

Upon receipt of the names and addresses, the lienholder shall immediately send by mail, return receipt requested, to the registered and legal owners of record, and any other interested parties the following:

• A completed Notice of Pending Lien Sale for Vessels or Vessel/Trailers Valued at $1,500 or Less (BOAT 156) (PDF).
• A return envelope preaddressed to DMV.

On the same day the notices are sent to the registered and legal owner(s) of record, and any other interested parties, the lienholder shall send to DMV by certified mail, return receipt requested a:

• Completed BOAT 156.
• Fair market value statement obtained from a licensed yacht and shipbroker verifying that the vessel value or vessel/trailer is under $1,500. See the Vessel Liens—Boaters Lien Law section in this chapter.

Step 2

DMV receives the BOAT 156 and marks the record. Thereafter, any person having a proprietary interest in the vessel will be notified of the pending lien sale.

The sale date must be set for no less than 35 days, but no more than 60 days, from the date of mailing.

Step 3

Owners and interested parties have 15 days from the date the notice is mailed to oppose the sale.

Step 4

To oppose the sale, the Declaration of Opposition must be signed and returned to DMV.

Within 16 days of receipt of the Declaration of Opposition, DMV sends a denial to conduct the lien sale letter to the lienholder, unless one of the following occurs:

• The lienholder files an action in court within 20 days of date the notice and judgment is issued in favor of the lienholder.
• The declarant (the opposer) releases interest in the vessel.

If the lienholder has attempted service upon the opposer at the address shown on the Declaration of Opposition and the letter is returned unclaimed, the lienholder may proceed with the lien sale.

Step 5

The vessel must be available for inspection at a location easily accessible to the public at least one hour before the sale and at the place of sale at the specified time and date (CH&NC §506).

Step 6

The lienholder shall conduct the sale in a businesslike manner. Sealed bids are not allowed (CH&NC §506).

Step 7

After the sale, the lienholder must keep the vessel for a 10-day redemption period.

Note If applicable, the license plate on the trailer must be removed and destroyed.

The vessel may be redeemed by the registered or legal owner by paying the amount of the lien, all costs and expenses of the lien, and interest on the sum at the legal rate from the date thereof until repayment (CH&NC §506.5)

Step 8

Within 15 days of the sale, the lienholder must submit any excess fees with a copy of the BOAT 156 to the DMV Lien Sale Unit.

Note All notices must specify the make, hull identification number (HIN), CF/license plate number, state of registration, if available, and the specific date, exact time, and place of sale.

For the vessel, the following must be submitted:

• An Application for Registration Number, Certificate of Ownership, and Certificate of Number for Undocumented Vessel (BOAT 101) form. The purchase price and date of purchase must be shown.
• A Certification of Lien Sale for Vessel or Vessels With Trailers Valued at $1,500 or Less (BOAT 177) form completed by the lienholder or agent.
• The certified or bulk mail receipts.
• The DMV printout of the vessel record.
• Any bill(s) of sale needed to complete the chain of ownership.
• Fees due. See the Determining Fees section in this chapter.

The procedures below must be followed:

• Assign a HIN. If there is no vessel HIN, follow the instructions in Chapter 24.
• Verify that the 10-day redemption period has passed before clearing the application.
  Note When a Declaration of Opposition is made, the sale may be authorized by a Release of Interest (BOAT 153) form or a certified copy of the court judgment issued in favor of the lienholder.
• Give the buyer an ABCs of California Boating booklet.
• If the vessel is motorized, issue one set of Vessel Carbon Monoxide Warning Stickers, with the companion brochure and advise the customer to affix the stickers as explained in Chapter 24.
• If the proceeds of the sale exceed the amount of the lien, forward the application to the Lien Sale Unit in DMV headquarters.

For the trailer if any, the following must be submitted:

• An Application for Title or Registration (REG 343) form.
• If there is no record on file for the trailer, a Verification of Vehicle (REG 31) form.
• All items previously listed for the vessel lien sale clearance. Photocopies are acceptable.
• If a title is requested, a Permanent Trailer Identification (PTI) Certification (REG 4017) form.