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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>69665</law_id><section_number>46.2-1603.1</section_number><catch_line>Duties of licensees</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>46.2-1601.3</reference><reference>46.2-1603.2</reference><reference>46.2-1608.2</reference><reference>46.2-626.1</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="46.2">Motor Vehicles</unit><unit label="subtitle" level="2" order_by="1" identifier="IV">Dealers and Driver Training Schools</unit><unit label="chapter" level="3" order_by="1" identifier="16">Salvage, Nonrepairable, and Rebuilt Vehicles</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> If a <span class="dictionary">salvage vehicle</span> is purchased by a <span class="dictionary">salvage dealer</span> and the vehicle is sold as a unit to anyone other than a <span class="dictionary">demolisher</span>, <span class="dictionary">rebuilder</span>, <span class="dictionary">vehicle removal operator</span>, or <span class="dictionary">scrap metal processor</span>, the purchaser shall obtain from the <span class="dictionary">Department</span> a <span class="dictionary">salvage certificate</span>. If the sale is to a <span class="dictionary">demolisher</span> or <span class="dictionary">vehicle removal operator</span>, the <span class="dictionary">salvage vehicle</span> shall be assigned in the space provided for such assignments on the existing <span class="dictionary">salvage certificate</span>. If a vehicle is purchased by a <span class="dictionary">salvage dealer</span> and disassembled for parts only or demolished by a <span class="dictionary">demolisher</span>, the <span class="dictionary">salvage dealer</span> shall immediately and conspicuously indicate on the <span class="dictionary">salvage certificate</span> or title that the vehicle was disassembled for parts only or demolished and immediately forward the <span class="dictionary">salvage certificate</span> or title to the <span class="dictionary">Department</span> for <span class="dictionary">cancellation</span>. The <span class="dictionary">Department</span> shall <span class="dictionary">cancel</span> the title or <span class="dictionary">salvage certificate</span> and <span class="dictionary">issue</span> a <span class="dictionary">nonrepairable certificate</span> for the vehicle to the <span class="dictionary">salvage dealer</span>. <a id="paragraph-251852" class="section-permalink" href="https://vacode.org/46.2-1603.1/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A1" class="indent-1"><p><span class="prefix-number">1.</span> If a vehicle for which a title or <span class="dictionary">salvage certificate</span> or other ownership document has been issued by a foreign <span class="dictionary">jurisdiction</span> and is purchased by a <span class="dictionary">salvage dealer</span> or <span class="dictionary">demolisher</span> and disassembled for parts only or demolished by a <span class="dictionary">demolisher</span>, the <span class="dictionary">salvage dealer</span> or <span class="dictionary">demolisher</span> shall immediately and conspicuously indicate on the <span class="dictionary">salvage certificate</span>, title, or other ownership document that the vehicle was disassembled for parts only or demolished and immediately forward the <span class="dictionary">salvage certificate</span>, title or other ownership document to the <span class="dictionary">Department</span> for <span class="dictionary">cancellation</span>. The <span class="dictionary">Department</span> shall <span class="dictionary">cancel</span> the title, <span class="dictionary">salvage certificate</span>, or other ownership document and <span class="dictionary">issue</span> a <span class="dictionary">nonrepairable certificate</span> for the vehicle to the <span class="dictionary">salvage dealer</span>. <a id="paragraph-251853" class="section-permalink" href="https://vacode.org/46.2-1603.1/#A1"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> There shall be no fee for the issuance of a <span class="dictionary">nonrepairable certificate</span>. <a id="paragraph-251854" class="section-permalink" href="https://vacode.org/46.2-1603.1/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> If a <span class="dictionary">licensee</span> acquires any <span class="dictionary">late model vehicle</span>, he shall immediately compare the vehicle identification number assigned by the manufacturer or the <span class="dictionary">Department</span> or the identification number issued or assigned by another state with the title or <span class="dictionary">salvage certificate</span> of the vehicle and shall notify the <span class="dictionary">Department</span> as provided in subsection C. Such comparison and notification shall not be required of a <span class="dictionary">demolisher</span> if the vehicle was acquired from a licensed <span class="dictionary">salvage dealer</span>, <span class="dictionary">rebuilder</span>, <span class="dictionary">salvage pool</span>, or <span class="dictionary">vehicle removal operator</span> and such <span class="dictionary">licensee</span> delivers to the <span class="dictionary">demolisher</span> a title or <span class="dictionary">salvage certificate</span> for the vehicle. <a id="paragraph-251855" class="section-permalink" href="https://vacode.org/46.2-1603.1/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> If the vehicle identification number has been altered, is missing, or appears to have been otherwise tampered with, the <span class="dictionary">licensee</span> shall take no further action with regard to the vehicle except to safeguard it in its then-existing condition and shall promptly notify the <span class="dictionary">Department</span>. The <span class="dictionary">Department</span> shall, after an investigation has been made, notify the <span class="dictionary">licensee</span> whether the vehicle can be freed from this limitation. In no event shall the vehicle be disassembled, demolished, processed, or otherwise modified or removed prior to authorization by the <span class="dictionary">Department</span>. If the vehicle is a <span class="dictionary">motorcycle</span>, the <span class="dictionary">licensee</span> shall cause to be noted on the title or <span class="dictionary">salvage certificate</span>, certifying on the face of the document, in addition to the above requirements, the frame number of the <span class="dictionary">motorcycle</span> and motor number, if available. <a id="paragraph-251856" class="section-permalink" href="https://vacode.org/46.2-1603.1/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> Except as provided in &#xA7; <a class="law" title="Sale of vehicle at public auction by locality; disposition of proceeds" href="/46.2-1203/">46.2-1203</a>, after a vehicle has been demolished, the <span class="dictionary">demolisher</span> shall, within five working days, deliver to the <span class="dictionary">Department</span> the <span class="dictionary">salvage certificate</span> or title, certifying on the face of the document that the vehicle has been destroyed. <a id="paragraph-251857" class="section-permalink" href="https://vacode.org/46.2-1603.1/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> Except as provided in &#xA7; <a class="law" title="Sale of vehicle at public auction by locality; disposition of proceeds" href="/46.2-1203/">46.2-1203</a>, it shall be unlawful for any <span class="dictionary">licensee</span> to purchase, receive, take into inventory, or otherwise accept from any person any <span class="dictionary">late model vehicle</span> unless, as a part of any such transaction, the <span class="dictionary">licensee</span> also receives a title, <span class="dictionary">salvage certificate</span>, <span class="dictionary">nonrepairable certificate</span>, or other ownership documents, issued by an appropriate regulatory agency within or without the Commonwealth, relating to such vehicle. Every <span class="dictionary">licensee</span> shall maintain as a part of his business records a title, <span class="dictionary">salvage certificate</span>, <span class="dictionary">nonrepairable certificate</span>, or other ownership documents, issued by an appropriate regulatory agency within or without the Commonwealth, pertaining to every <span class="dictionary">late model vehicle</span> in his inventory or <span class="dictionary">possession</span>. <a id="paragraph-251858" class="section-permalink" href="https://vacode.org/46.2-1603.1/#E"><i class="fa fa-link"/></a></p></section>
						<section id="F"><p><span class="prefix-number">F.</span> If a <span class="dictionary">licensee</span> intends to utilize machinery to crush, flatten, or otherwise reduce one or more <span class="dictionary">vehicles</span> to a state where it can no longer be considered a vehicle at a location other than the location specified on the license filed with the <span class="dictionary">Department</span>, the <span class="dictionary">licensee</span> shall apply to the <span class="dictionary">Department</span> for a permit of operation in a manner prescribed by the <span class="dictionary">Commissioner</span>. Each permit shall be valid for a period not to exceed 15 days and shall specify the location of intended operation. The cost of each permit shall be $15. <a id="paragraph-251859" class="section-permalink" href="https://vacode.org/46.2-1603.1/#F"><i class="fa fa-link"/></a></p></section>
						<section id="G"><p><span class="prefix-number">G.</span> The <span class="dictionary">licensee</span> shall comply with all applicable federal title reporting requirements, including the reporting requirements of the National <span class="dictionary">Motor Vehicle</span> Title Information System pursuant to 28 C.F.R. &#xA7; 25.56. <a id="paragraph-251860" class="section-permalink" href="https://vacode.org/46.2-1603.1/#G"><i class="fa fa-link"/></a></p></section></text><history>1992, c. 148; 1995, cc. 390, 394; 2004, c. 369; 2011, c. 824; 2014, c. 58.</history><metadata></metadata></law>
