Michigan salvage title rules: Salvage, Rebuilt Salvage, Scrap and Flood

In Michigan the brand depends on how much the damage would cost to fix. The Michigan Secretary of State issues a Salvage title when repairs come to 75% or more of the vehicle's value but less than 91%, and a Scrap title from 91% up. A salvage vehicle that's repaired and passes inspection gets a title reading Rebuilt Salvage.

These notes sum up the Michigan Secretary of State's published rules as of October 2026. They aren't legal advice, so check with the Michigan Secretary of State before you buy, repair or register a vehicle.

Michigan's title brands

These are the words DNF uses for a vehicle titled in Michigan. Always go by what's printed on the title itself.

A title with none of these doesn't prove a vehicle was never damaged. It only means no brand was recorded.

When a vehicle gets a Salvage or Scrap title

A vehicle becomes what Michigan calls distressed when one or more major parts are wrecked, destroyed, damaged, stolen or missing and the estimated damage comes to 75% or more of its value before the damage. Michigan's list of major parts is the engine, the transmission, a front fender, the hood, a door into the passenger compartment, a bumper, a rear quarter panel, the trunk lid, tailgate or hatchback, the trunk floor pan, a pickup's cargo box, the frame or unibody structure, a truck cab and a passenger car's body. The estimated cost of repair, parts and labor, as a share of that value decides the title.

When an insurer lets the owner keep the vehicle after a total loss, the owner signs the application and the insurer applies for the Salvage or Scrap title in the owner's name. The owner can't sell or dispose of the vehicle until that title arrives, and then it's assigned to the buyer. An insurer selling a salvage or scrap vehicle itself may assign the title only to an automotive recycler, a used or secondhand vehicle parts dealer, a foreign salvage vehicle dealer or a vehicle scrap metal processor.

Who may buy a salvage or scrap vehicle

Unless the seller is a licensed recycler, used-parts dealer or foreign salvage dealer, Michigan law lets a salvage-titled vehicle go only to its former owner or to a licensed recycler, used-parts dealer, scrap processor or foreign salvage dealer. Michigan law lets a Scrap-titled vehicle go only to a licensed recycler, used-parts dealer, scrap processor or foreign salvage dealer.

On DNF, every Michigan Salvage listing and every Michigan Scrap listing takes offers only from buyers with a licensed-business badge, whoever is selling. The listing says: "Only buyers Michigan allows can make an offer on this vehicle. Add your license number to your business profile to continue." A sale back to the former owner is between the seller and that person, outside DNF.

Rebuilt Salvage and Flood listings in Michigan are open to offers from anyone with a free DNF account.

Licensing reaches further than these two titles. Being in the business of buying, selling or dealing in five or more vehicles in 12 months needs a Michigan license, and so does buying certain damaged vehicles through a salvage pool, auction or broker. The guide to buying without a dealer license in Michigan covers both.

Buying a branded Michigan vehicle

A Salvage title lets its holder own, transport and sell the vehicle, but not drive it on a highway, and the Secretary of State won't plate it until it's been recertified. Before you pay:

• Read the title. Check the color and the brand, and read the list of major parts that couldn't be salvaged. The VIN on it should match the plate on the dashboard and the label on the driver's door frame.
• Check that the seller is the owner named on the title, and that it lists no lienholder or comes with the lienholder's release.
• Plan for the inspection if you'll rebuild. The Michigan rebuilt title inspection guide explains it, and it needs proof of ownership for every repair part.

Vehicles that can never return to the road

A Scrap vehicle is finished. Michigan law says a scrap title lets the holder transport the vehicle, but not drive it, and pass it to a licensed business, and that a title must not be issued for it again. Nobody may rebuild or repair a scrap vehicle and keep its original VIN. The Secretary of State also says that when you sell an older vehicle for scrap, you can write "scrap" or "junk" on the original title so it can't be titled or put back on the road. On DNF, a Scrap vehicle is listed for parts or scrap only.

Flood vehicles, fire damage and our rule

Michigan brands the title of a flood-damaged vehicle, and the brand stays on all future titles.

On DNF, a Michigan flood brand stays on the listing. We don't move it to parts only as we do in Canada. Instead the listing carries a high-risk notice: Michigan lets it be rebuilt and titled with the brand, but water damage can hide in wiring and safety systems, and Canada won't accept it as a vehicle. Canada's border agency treats a flood or water-damaged vehicle from the US as non-repairable and lets it in only as parts. A listing with flood or fire damage gets a high-risk notice too, and either way its Score stays in the Parts only band. That's our rule, not the state's.

Every Michigan listing on DNF shows the title brand as the seller reports it, along with the damage, the condition and a Score. See salvage vehicles for sale in Michigan.