A salvaged vehicle is one that has been declared a total loss by an auto insurance company either because it has been in an accident or submerged in a flood. California is the first state to adopt stickers for salvaged vehicles.
The law also requires car dealerships to register all car sales electronically. About half of California’s car dealers already register their vehicles in the electronic system. Come July all dealers must participate. Dealers will be able to increase the cost of vehicle documentation from $55 for sales and $45 for leases to $80 for both.
The law adds an extra layer of protection into the car purchasing process for consumers. The California New Car Dealers Association is behind the law. In addition to extra protection, the electronic registrations speed the process of registration and getting license plates. License plates, which will be processed as fast as one month, as opposed to the current wait time of six months.
All new- and used-car dealers in California will post a red sticker on used cars that have been flagged in a federal database as junked, salvaged or flood damaged.
While this offers increased protection for the consumers, flood damaged vehicles are often transported to states that have not had flooding. Most consumers today are aware that any used vehicle’s history is available to them using companies like Carfax or Experian’s AutoCheck and should be checked before purchase.
Image source of a car dealership: Wikipedia