Salvage dealer license

The motor vehicle salvage dealer license allows a business to buy and resell vehicles for wrecking, processing, scrapping, recycling or dismantling. A licensed salvage dealer cannot use the salvage license to buy even one salvage vehicle for personal use, or for the dealership, its employees, family or friends to own or use. Wisconsin Department of Transportation (WisDOT) issues the following types of salvage dealer licenses:

  • Type 1 - Salvage dealership dismantles vehicles and sells parts. Dealership facilities include an office and a yard.
  • Type 2 - Salvage dealership conducts all business within a building; there is no salvage yard. Vehicles are dismantled and parts sold.
  • Type 3 - Scrap metal recycler, shredder or baler does not dismantle vehicles or sell parts. Facilities include an office, but no yard.
  • Type 4 - Business buys vehicles from owners and may transport them to a licensed salvage yard or scrap metal recycler. Facilities include an office for record storage and a place to park the vehicles used for transporting salvage. The "Type 4" Salvage dealer license is also called a "Scavenger license."

To qualify for a salvage dealer license, you must meet all the following criteria:

  1. An established place of business that complies with all local zoning and permit regulations.
  2. A sign displaying the salvage dealer license number on any truck or truck-tractor used to haul, tow or push salvage vehicles.
  3. A business sign and posted hours.
  4. Demonstrate you are in compliance with certain environmental regulations.
  5. $25,000 financial coverage - one of the following options
  6. A sales tax seller permit is required for Type 1 and Type 2 salvage dealer licenses only. To obtain one, contact the Department of Revenue at (608) 266-2776 or on their Web site under sales and use tax.
  7. A two-year lease if you do not own the business real estate.
  8. Articles of Incorporation or Articles of Organization. If your business is established as a corporation or a limited liability company, the State of Wisconsin requires a photocopy of your Articles of Incorporation or Articles of Organization as filed with the Department of Financial Institutions or the governing body in the state where the corporation was established.
  9. Dealer license fee and individual license fee (Salvage Buyer Identification Card only)
  10. You will be required to comply with an inspection of the business location before the license is issued.
  11. You must be at least 18 years old.
  12. You must be of good character and must not have been convicted of a serious crime directly related to the sale of motor vehicles.

Environmental regulations

Licensed Wisconsin salvage dealers must also register with the Wisconsin Department of Natural Resources (DNR) Storm Water Program and Wisconsin DNR Refrigerant Recovery Program. You must submit letters from DNR confirming your compliance with these two programs along with your DOT salvage dealer application.

For stormwater discharges, you must have current DNR permit coverage unless you are exempt (Type 4 salvage dealers only). Send in the DNR letter indicating you hold a current Stormwater Discharge permit.

For refrigerant recovery, you must either be registered with DNR to do the refrigerant recovery yourself (send in DNR registration cover letter), or have certified to the DNR that you have arranged for another DNR-registered entity to do the refrigerant recovery for you, or that you do not receive any vehicles with refrigerants (send in DNR confirmation letter).

For more information about environmental laws and permits, contact:



Storm Water

Melissa Yarrington

Storm Water Program Coordinator

Bureau of Watershed Management

Wisconsin Dept. of Natural Resources

P.O. Box 7921

Madison, WI 53707-7921

(715) 401-1794

Email: melissa.yarrington@wisconsin.gov



Refrigerant Recovery

Stephen Nehring

Refrigerant Recovery Program Coordinator

Bureau of Air Management

Wisconsin Dept. of Natural Resources

Wisconsin Department of Natural Resources

PO Box 7921

Madison, WI 53707-7921

(608) 896-3452

Email: Stephen.nehring@wisconsin.gov



For information on federal Environmental Protection Agency refrigerant recovery requirements, call (800) 296-1996.

You can combine a salvage dealership and retail dealership - you may hold both a salvage dealer license and retail dealer license at the same business location, provided you meet all the requirements for both licenses, plus these special requirements for a shared salvage/retail dealership:

  • Physically separate the salvage operation from the retail dealership operation with a natural barrier, fence or wall at least four feet high.
  • Keep the gate or doors closed between the salvage and retail operations except when moving vehicles or parts in or out of the salvage area.
  • Near the main entrance to the salvage yard, post a sign at least 24 x 48 inches in size that says "salvage yard."
  • Submit to WisDOT an inspection of the business location before the license is issued.

Required application forms / documents / fees

  1. Motor Vehicle Salvage Dealer or Recycler Two Year License Application MV2180.
  2. Entity/Owner Statement MV2844
    • If your business has more than one owner, print and submit a form for each owner, partner, LLC member or manager, corporate officer or shareholder
  3. Business Facilities Statement
    • For a Type 1 license, complete MV3184 Salvage Type 1 Business Facilities Statement
    • For a Type 2 license, complete MV3185 Salvage Type 2 Business Facilities Statement
    • For a Type 3 license, complete MV3186 Salvage Type 3 Business Facilities Statement
    • For a Type 4 license, complete MV3187 Salvage Type 4 Business Facilities Statement
  4. Salvage Buyer Identification (BID) Card Application MV2651 (optional)
  5. Enclose certification and/or letter issued by WI Dept. or Natural Resources
    • Letter/certification for current permit coverage for stormwater discharge or are exempt (Type 4 salvage dealers only).
    • Letter/certification for registration with DNR to recover refrigerants from vehicle air conditioners or confirms that you have certified to DNR that you are using another DNR-registered entity to perform all refrigerant recovery at your facility, or that you do not receive any vehicles with refrigerants (required for all salvage dealer license types).
  6. $25,000 financial coverage - one of the following options
  7. Two-year lease if you do not own the business real estate
  8. Articles of Incorporation or Articles of Organization. If your business is established as a corporation or a limited liability company, the State of Wisconsin requires a photocopy of your Articles of Incorporation or Articles of Organization as filed with the Department of Financial Institutions or the governing body in the state where the corporation was established.
  9. Application fees: dealer license, dealer plates and individual licenses (Salvage Buyer Identification Card only)

For more information:

*NEW* New dealer application (salvage dealer license checklist) and dealer renewal application can now be emailed to DOT for processing: Application-Renewal Email Instructions

*NEW* If your dealership is going out of business please complete the MV2199 Out of Business Dealer Statement.

  • Carefully complete all fields on the form, including signature and date on page 2. Please mail your dealer plates, licensing certificate and individual credentials, and the MV2199 Out of Business Dealer Statement to the mailing address listed below.
  • You may also email the MV2199 Out of Business Dealer Statement form to dealerlicensingunit@dot.wi.gov, but you must still mail your dealer plates and credentials to the department.

Apply by mail  - all required forms/documents must be arranged in the order shown on the salvage dealer checklist.

Mail all original signed application forms to the following address:

Wisconsin Dept. of Transportation
Dealer & Agent Section
PO Box 7909
Madison, WI 53707-7909

Make your check payable to Registration Fee Trust.

Questions?

Email Wisconsin DMV email service