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Alabama

moderate

Salvage & rebuilt title laws for car flippers — updated 2026

Inspection
$90
Rebuilt Impact
-25%
Threshold
75% of ACV
Title Fee
$18

The master dealer license requirement for non-prior-owners is a significant barrier for flippers buying at auction. Prior owners have an easier path. $90 fee is reasonable.

Conversion Process

If you owned vehicle before salvage: submit electronic application, salvage title, parts bills of sale, registration receipt, and $90 inspection fee. If you did NOT own before salvage: MUST have master dealer regulatory license. Inspector contacts you within 1-2 weeks.

Inspection Requirements

Type: both

Agency: Alabama Department of Revenue inspectors

$90 inspection fee in certified funds. Electronic application only (no paper since April 2024). Inspector contacts you within 1-2 weeks to schedule. Decal/plate affixed to vehicle showing rebuilt status.

Out-of-State Titles

Accepts out-of-state salvage: Yes

Accepts non-repairable: No

Accepts out-of-state salvage titles. Same requirements apply.

Title Branding

Title reads: REBUILT

Issues parts-only: Yes

Issues certificate of destruction: Yes

Non-repairable label: Parts Only / Non-Rebuildable / Certificate of Destruction / Junk

Resale Impact

Salvage title-50% from clean valueRebuilt title-25% from clean value

Alabama market is moderate. Birmingham and Huntsville have decent demand. Lower cost of living means lower vehicle prices overall.

Fees

Salvage title fee: $18

Rebuilt title fee: $18

Special Restrictions

  • Master dealer license required if you didn't own vehicle before salvage
  • Electronic applications only (no paper since April 2024)
  • Parts only / non-rebuildable / COD / junk branded vehicles CANNOT be rebuilt
  • Must disclose salvage/rebuilt status in 10-point type minimum to buyer
  • Rebuilt decal permanently affixed to vehicle
Official Alabama DMV source ↗

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