A vehicle with a salvage title has been declared a total loss by an insurance company, and can neither be driven on public roads nor issued a license tag. If you own one, you may either sell the vehicle to a licensed rebuilder for parts or rebuilding, or rebuild the vehicle yourself and apply for a rebuilt title. The process of acquiring a rebuilt title will require you to obtain a special license and post a bond that will probably cost more than the book value of the vehicle you are rebuilding.
Obtain a rebuilder's license from the State of Alabama. You will need to contact the Alabama Department of Revenue, License Tax Section, at P.O. Box 327550, Montgomery, AL 36132-7550 (telephone: (334) 353-7827). You will need to provide proof of garage liability insurance and post a $10,000 surety bond. An application for a rebuilder's license and will be mailed to you.
Read More: How to Change a Salvage Title to a Rebuilt Title
Complete the application for a rebuilder's license, sign it, and mail it to the address listed in the form. A rebuilder's license will be mailed to you.
Rebuild the vehicle to the condition it was in before it was totalled. Be sure to obtain notarized bills of sale for all major parts that you used to rebuild the vehicle, as well as non-notarized bills of sale for all minor parts that you used. The bills of sale should include the Vehicle Identification Number (VIN) of the vehicle from which the parts were taken.
Complete Form INV 26-15, Application for Inspection of a Salvage Vehicle, and sign it.
Complete Form INV 31-1 Form, Remittance Advice, and sign it.
Prepare a $90 processing fee in certified funds.
Send for INV 26-15, Form INV 31-1, the original salvage title (not a copy), the parts bills of sale, a copy of your rebuilder's license, and the $90 processing fee to the Department of Revenue Automobile Inspection Unit at P.O. Box 327641, Montgomery, Alabama 36132-7641 (telephone (334) 242-3012). You will receive notification of when and where to present the vehicle for inspection.
Tow the vehicle to the address for a salvage vehicle inspection. If it passes the inspection, a "rebuilt" license tag and title certificate will be issued.
In order to rebuild the vehicle, the salvage title must have been issued in your name or properly assigned to you.
Once you are licensed as a rebuilder, you may purchase salvage title vehicles from others and rebuild them for profit as long as the license remains valid.
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