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A scrap title is issued to a vehicle that has one or more major component parts (such as bumpers, fenders, transmission, engine, hood, doors, frame, tailgate, body, etc.) that have been wrecked, destroyed, damaged, stolen, or missing to the extent that the total estimated cost of repair (parts and labor) for the vehicle is 91% or more of its pre-damaged value. The owner's insurance company will determine the amount of damage to the vehicle. A Michigan scrap title is red and has the wording "Scrap Title" at the top, while regular Michigan titles are green.
After a scrap title is issued, the vehicle may be used only for parts or scrap metal. It cannot be re-titled or returned to the road using the existing vehicle identification number.
A late-model vehicle is defined as:
When a vehicle dealer acquires a late-model distressed vehicle not yet titled as salvage, and the vehicle's estimated cost of repairs is 91% or more of its pre-damaged value, the dealer must apply for a resale scrap title within five days.
The dealer must complete both an Application for Original Michigan Scrap Title (TR-12) form and an Application for Michigan Title - Statement of Vehicle Sale (RD-108)form in the name of the dealership.
An insurance company acquiring ownership of a late-model scrap vehicle through payment of damages must apply for an original scrap title using an Application for Original Michigan Scrap Title (TR-12)form.
An individual owner can voluntarily title a vehicle with a scrap title, regardless of the amount of damage. The law does not require that a damage estimate be provided with the scrap title application from an individual vehicle owner. The vehicle owner must complete and sign an Application for Original Michigan Scrap Title (TR-12)form.
An older-model vehicle is defined as:
An older-model distressed vehicle is not required to be titled as a salvage or scrap vehicle. When scrapped by a dealer, the dealer uses the TR-9 form to transfer the vehicle to a scrap metal processor.
When an insurance company acquires ownership of an older-model vehicle, a salvage or scrap title is not required. The insurance company simply receives the title from the insured and reassigns the title upon resale of the vehicle.
When an individual sells an older-model vehicle as scrap or junk and the owner does not want the vehicle back on the road, the owner should complete the seller's assignment on the title and write the word "scrap" or "junk" on the front of the title.
Writing 'scrap" or "junk" on the face of the title guarantees the vehicle cannot be titled again. If the individual turns the scrap title and vehicle over to a dealer, the dealer (other than a D, F, or G dealer) can reassign the title to another dealer for parts. However, no title will be issued. If the vehicle is being taken to a recycling center or junkyard, the owner should give the title marked "scrap" or "junk" to the junkyard operator.
Individual owners who wish to junk or scrap a vehicle without turning the vehicle over to a recycling center or junkyard and wish to cancel the title should write "JUNK" on the face of the title and mail the title to:
Michigan Department of State
Once a scrap title is issued, the vehicle may be used only for parts or scrap metal. It cannot be titled again except as an assembled vehicle, when it will be issued a unique vehicle identification number.
A scrap-titled vehicle must be first completely dismantled, with all major component parts removed from the frame or unitized body supporting structure, before the frame or unitized body structure may be used as part of an assembled vehicle. To qualify for an assembled vehicle title, a vehicle assembled from scrap vehicle parts must be made up of major component parts from two or more vehicles. An assembled vehicle may not include both the frame (or unitized body supporting structure) and any other major component part from the same scrap-titled vehicle.
Applying For a Scrap Vehicle Title
An individual, business, or dealer may submit applications for scrap titles either at a local Secretary of State branch office or directly to Lansing, Michigan. A check in the amount of $20.00 made payable to "State of Michigan" must accompany all applications. When using the direct mail method, send all documents, fees, and the TR-12 application (and a RD-108 if a dealer) to:
Michigan Department of State
> RD-108 (blank) - 184526 bytes
> Salvage/Scrap Title Application Form (TR-12) - 161559 bytes
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