NMVTIS Updates Build Salvage Market
January 3, 2024
NMVTIS users now can see two new dispositions to improve data quality, and companies reporting NMVTIS are required to validate certain data elements reported.
Salvage Reports made by Businesses
The NMVTIS database now contains 99% of all U.S. vehicles, and is used in all 50 states, most states use it daily for retitling. Any business buying five or more salvage vehicles must report to NMVTIS within 30 days of purchasing a vehicle and within 30 days of getting rid of a vehicle. Now, individuals are also able to report salvage vehicles to NMVTIS, making it the only database of its kind that contains data from all 50 states. With these changes, AAMVA put requirements on the data being reported to ensure it is consistent.
Disposition for Insurance Companies
A new disposition called “Retained by owner” was added primarily for insurance companies. This disposition is to be used when a salvage vehicle is kept by the owner.
Disposition for Salvage Businesses
The “Parts” disposition was added to designate vehicles that were purchased to be parted out. In the wake of COVID and subsequent low vehicle inventories, there has been a huge growth in vehicles being rebuilt and made drivable. The “Parts” disposition makes it easier to get these vehicles retitled, while still informing buyers that they were previously salvage vehicles.
As NMVTIS use expands, businesses selling parts from vehicles are now required to provide proof of the part’s origins. For example, eBay requires businesses to prove that a vehicle was reported to NMVTIS to be able to sell airbags.
In the future, businesses and individuals will likely be required to prove the vehicle was reported to NMVTIS to qualify to sell parts. The goal in these updates is to reduce the number of illegal or unlicensed sellers and to raise awareness of what legitimate salvage operations have to offer.
Salvage businesses should continue reporting to NMVTIS as required. Continued compliance with these updates will make these changes more effective in building the salvage market.