Disclosure Of Rebuilt Or Salvage Motor Vehicles

(1) The motor vehicle dealer or salesperson who knows that a motor vehicle has a salvage history, or that a motor vehicle’s title was previously branded as rebuilt or salvage, shall disclose, acknowledged in writing by the purchaser prior to the consummation of the sale, that the motor vehicle has a rebuilt title, salvage title, or salvage history. (2) The disclosure in writing as required by subsection (a) shall be completed on a form prescribed by the Commission which states the following: NOTICE DISCLOSURE OF REBUILT OR SALVAGE VEHICLE Pursuant to Tenn. Comp. R. & Regs. 0960-01-.29, the following disclosure is required prior to the sale of any vehicle with a rebuilt title, salvage title, or salvage history along with the signature of the purchaser acknowledging such disclosure. The motor vehicle you are purchasing has a rebuilt title, salvage title, or salvage history. The value of this vehicle may be significantly less than a similar vehicle that is not branded with a rebuilt title, salvage title, or does not have a salvage history. (Purchaser’s Printed Name) _____________________________________ (Purchaser’s Signature)_________________________________________ (Date) ____________ (Dealer or Authorized Representative’s Printed Name) __________________________________ (Dealer or Authorized Representative’s Signature) _______________________________ GENERAL RULES CHAPTER 0960-01 (Dealer’s Business Name and License Number) _____________________________________________ Year________Make_______________Model_________________VIN___________________________ ____________________________________________________________________________________ “Rebuilt title” means the passenger motor vehicle ownership document issued by any state to the owner of a rebuilt vehicle. Ownership of the passenger motor vehicle may be transferred on a rebuilt title, and a passenger motor vehicle for which a rebuilt title has been issued may be registered for use on the roads and highways. A rebuilt title shall be conspicuously labeled with the words “Rebuilt Vehicle--Anti-Theft Inspections Passed” across the front (T.C.A. § 55-3-211(6)). “Salvage title” means a passenger motor vehicle ownership document issued by any state to the owner of a salvage vehicle. Ownership of the passenger motor vehicle may be transferred on a salvage title; however, a passenger motor vehicle for which a salvage title has been issued shall not be registered for use on the roads or highways unless it has been issued a rebuilt title. A salvage title shall be conspicuously labeled with the word “Salvage” across the front (T.C.A. § 55-3-211(8)). “Salvage history” means: (a) Any passenger motor vehicle which has been wrecked, destroyed, or damaged to the extent that the total estimated or actual cost of parts and labor to rebuild or reconstruct the passenger motor vehicle to its pre-accident condition and for legal operation on the roads or highways exceeds seventy-five percent (75%) of the retail value of the passenger motor vehicle, as set forth in a current edition of any nationally recognized compilation (to include automated databases) of retail values, or (b) Without regard to whether such passenger motor vehicle meets the seventy-five percent (75%) threshold specified in subparagraph (a), any passenger motor vehicle which the owner may wish to designate as a salvage vehicle by obtaining a salvage title, without regard to the extent of the passenger motor vehicle’s damage and repairs. This designation by the owner shall not impose on the insurer of the passenger motor vehicle or on an insurer processing a claim made by or on behalf of the owner of the passenger motor vehicle any obligations or liabilities (Pursuant to Tenn. Comp. R. & Regs. 0960-01-.29(3)). (3) For purposes of this rule, “salvage history” means: (a) Any passenger motor vehicle which has been wrecked, destroyed, or damaged to the extent that the total estimated or actual cost of parts and labor to rebuild or reconstruct the passenger motor vehicle to its pre-accident condition and for legal operation on the roads or highways exceeds seventy-five percent (75%) of the retail value of the passenger motor vehicle, as set forth in a current edition of any nationally recognized compilation (to include automated databases) of retail values, or (b) Without regard to whether such passenger motor vehicle meets the seventy-five percent (75%) threshold specified in subparagraph (a), any passenger motor vehicle which the owner may wish to designate as a salvage vehicle by obtaining a salvage title, without regard to the extent of the passenger motor vehicle’s damage and repairs. This designation by the owner shall not impose on the insurer of the passenger motor vehicle or on an insurer processing a claim made by or on behalf of the owner of the passenger motor vehicle any obligations or liabilities. GENERAL RULES CHAPTER 0960-01 (4) If a motor vehicle is sold through an electronic automobile auction or through an online transaction, then the motor vehicle dealer shall electronically send the purchaser the following notice prior to the consummation of the sale: NOTICE DISCLOSURE OF REBUILT OR SALVAGE VEHICLE Pursuant to Tenn. Comp. R. & Regs. 0960-01-.29, the following disclosure is required with respect to the sale of any vehicle with a rebuilt title, salvage title, or salvage history: The motor vehicle you are purchasing has a rebuilt title, salvage title, or salvage history. The value of this vehicle may be significantly less than a similar vehicle that is not branded with a rebuilt title, salvage title, or does not have a salvage history. (5) Compliance with subparagraphs (1)–(4) may not be waived by the purchaser.