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Buying junkers for parts, metal

Published (4/20/2012)
By Mike Cook
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The number of people who can purchase vehicles at insurance auctions is expanding.

A new law allows new and used motor vehicle dealers who hold a scrap metal processor license to acquire a vehicle declared a total loss and sell both the vehicle parts and remaining scrap metal. Under current law, only dealers with a used parts vehicle dealer license can perform such activity.

According to the nonpartisan House Research Department, “a scrap metal processor license permits the licensee to engage in the business of acquiring operable vehicles for selling the metal for remelting, while a used vehicle parts dealer license permits the licensee to operate a business that acquires vehicles, dismantles it for parts, and sells both the parts and the remaining scrap materials.”

Supporters said the change will be beneficial for car insurance purchasers because theoretically they’d get more money for resale than if there is a more limited set of buyers.

Signed April 5 by Gov. Mark Dayton, the law takes effect Aug. 1, 2012.

Rep. Chris Swedzinski (R-Ghent) and Sen. John Howe (R-Red Wing) are the sponsors.

HF2736/ SF2273*/CH163

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