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Auto Data Direct Highlights Buying, Processing and Reporting Changes



Business is ever changing, and that is so true for the auto salvage industry. The salvage businesses have seen huge changes in the last 10 years and these changes are bringing this industry into the “real world” with technology advances that have been alluding the industry for a while now.  

Almost every auction is online. Successful salvage business do a bigger percentage of sales and buying online or out-of-state, and reporting requirements seem to have grown. 

In previous years, states like Georgia, Tennessee, Alabama, North Carolina, South Carolina and New Mexico have gone to requiring businesses to report salvage purchases to the state electronically in a shorter time period than the federally required 30 days. Some of these states have incorporated the federally required NMVTIS reporting with the state reporting, but some haven’t which means that businesses must report their salvage purchases twice. The states that haven’t are looking at incorporating the NMVTIS reporting. Many states have incorporated federal NMVTIS rules and inquiries at the state level and NMVTIS has become a regular reference for many states in the titling process. Some states even use NMVTIS reports for cancelling titles and applying brands automatically to vehicles. There are 18 states that allow businesses to buy salvage vehicles without titles, as long as the vehicle is at least so many years old and less than a certain value (usually $1,000). 

For 2019, Florida has passed two new laws allowing businesses to electronically process titles changing from regular titles to “salvage titles” or certificates of destruction (CDs). This new process is all electronic and businesses can complete the electronic process, attach the appropriate scanned documents, and be issued the new title right from their computer desktop, saving huge amounts of time and physical movement of paperwork. This can also be used for processing of derelict vehicles and also potentially cancelling titles with the state. These new laws go into effect October 1, 2019 and systems are being updated to handle these changes.  

Also for 2019, Indiana adopted a new law requiring business that purchase salvage vehicles to report these vehicles to NMVTIS within 72 hours of purchase (not the federally required 30-day period). The faster reporting requirement can provide better data but affected businesses in Indiana do need to verify when and how they are reporting these vehicles, so they can be sure they are compliant. Unfortunately, several of the automated reporting processes do not report frequently enough to meet the 72-hour requirement, and if the state of Indiana decides to enforce it, there are fines available for non-compliance. 

One of the biggest issues affecting salvage businesses currently are the recalls that are out there and the risk to businesses of selling a recalled part or buying a vehicle with outstanding recalls. ARA and other industry vendors have been very active in trying to get useful information to businesses in a manner that makes good business sense. There is a group called the Auto Alliance which is made up of representatives of from most of the OEMs. The Auto Alliance has a database of the recall information and they have made it available to NSVRP and Carfax. Both groups are working with the industry to provide information that will be useful to the salvage industry.  

The point is the industry is changing and businesses need to be aware of what is out there, so they can see how they can best utilize the new data and services that are available. Those that embrace the changes will likely succeed in the future. 

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