Wednesday, May 20, 2009

New Custom Built Motorcycles

A new custom built motorcycle is usually defined, for the purposes of registration, as a motorcycle assembled from new parts, usually aftermarket parts, which is assembled by a person other than a manufacturer of motorcycles by using major components which are purchased from authorized manufacturers of component parts and which are accompanied by the Manufacturer's Statement of Origin (MSO).

This is, perhaps, the simplest scenario for obtaining a title for a custom built motorcycle. Because each part that is purchased comes with a payment receipt and the larger components such as frame and engine also must have a valid MSO, the builder simply saves and organizes each of these key pieces of paperwork until completing the motorcycle. Parts which do not have MSOs should have the original receipt saved for proof of where the parts were obtained. It is important to be able to prove that each and every part was obtained legally.

In the case of the frame and engine, the VINs listed on the MSOs must be visible on the completed custom built motorcycle for verification. If these numbers do not match, it will be almost impossible to register the bike, so check that the paperwork included with your major components match the numbers on the components and if an error is found, contact your supply source immediately. Do not install the part and think that you can work it all out later; you might have to return the component in a worst case scenario and have replacement shipped. While these errors are very rare, anything can and often will happen during a custom motorcycle build project and the registration office is no place to reach the initial realization that you have a major issue with VINs and MSOs.

The motorcycle will need to be presented to a local law enforcement agency in your area for an inspection of road-worthiness, comparison of the VINs, and certification of the odometer reading. This certification is required for the next steps in the process.

The next step in the process is application for an Assigned ID Number. This requires filling out an application and providing photocopies of all documentation, including the law enforcement inspection, along with any fees charged by your locale. This is then submitted to the Department of Motor Vehicles. If approved, an Assigned ID Number plate is manufactured and mailed to you. This must be properly affixed to the motorcycle.

Next, a Certificate of Title for a Custom Built Motorcycle from Aftermarket Parts must be obtained. The original supporting documentation, along with an Application for Title, and the specific fee charged by your State, must be submitted.

Once the title is received in the mail, you can obtain insurance and take Proof of Insurance to the Registration Office. You will need to pay the normal fee for registering a motorcycle along with fees associated with receiving a license plate.

Kit Motorcycles

If you are building a custom motorcycle based on a complete kit you purchased which includes the rolling chassis and engine, the VINs and MSOs will be included with the kit. If you choose to use a kit which does not include the engine and you purchase a new aftermarket engine, you will need to use the MSO for the frame from the kit and obtain an MSO for the engine from your supplier.

The remainder of the process will be exactly like that of all other scenarios.

New Rolling Chassis and New Aftermarket Engine

When you purchase a rolling chassis on which to assemble your custom motorcycle, you will be provided with the necessary MSO and VIN. You must ensure the documentation matches the numbers on the chassis. Your new engine will arrive with VIN and MSO.

The remainder of the process will be the same as that of other situations.

Custom Built Motorcycle Assembled from Used Non-Salvage Parts and Components

This situation becomes a bit more difficult unless the motorcycle builder is well aware of requirements and ensures all paperwork is readily available. The frame purchased must have a clear Title associated with it, as must the engine.

The term "non-salvage" does not mean that some of the parts or components may not come from a wrecked motorcycle. It does mean that the wrecked motorcycle has not been assigned a Salvage Title, in some States called a Scarped Title. In other words, if you locate a person holding a clear title to a wrecked motorcycle who wants to sell the engine from the motorcycle while scrapping other parts, you need to ensure that you either obtain the Title to the motorcycle or you contact your local Department of Motor Vehicles and, along with the seller, fill out an affidavit or other form required by the State in this situation. If the seller needs to sell the frame as scrapped, your local DMV can tell you the process to follow so that both parties are protected and have the legally required paperwork. This varies greatly from State to State, so be sure to fully understand your area's requirements for this situation.

By keeping all receipts as proof of purchase and ensuring you have title to the engine and frame, or other proof of ownership acceptable to your state, you can progress through the process through the standard safety inspection, titling, insuring, and registration.

Custom Motorcycle Built from Some or All Salvaged Parts

This scenario is one of the more difficult situations with which to ensure your custom build will be easy to title and register. When a motorcycle has been involved in an accident and declared a "total loss" by the insurance company and the State's Department of Motor Vehicle, the title is taken from the vehicle, reducing it to a pile of parts which can be sold to people like you who are seeking low priced parts for a custom build.

Because the definition of a total loss simply means the cost of restoring the entire motorcycle to its original, safe operating condition is too costly to perform, this does not always mean that all of the parts and components are of no use to a custom motorcycle builder. If you are planning to modify the frame anyway, you may not mind a little damage in certain areas of the frame. Some experts can straighten a frame without weakening the frame strength even when it is slightly bent. Perhaps the engine was not seriously damaged but the rest of the motorcycle is beyond repair and you want that specific engine for your custom build.

Some States make it especially difficult to title a motorcycle which includes salvaged major components. It can actually be beneficial in some situations to go ahead and buy the entire motorcycle and obtain the Title which has been marked as Salvage unless the seller is willing to surrender the Salvage Title with only purchase of some of the parts. Generally, a seller will want the frame and engine to go together in order to surrender the title since these are the parts that carry the VIN displayed on the title's face.

If you buy one motorcycle to get the frame and obtain a Salvage Title with it and buy another bike to get the engine and obtain a Salvage Title with that component, you should still be in good shape in almost every State. Before you invest the money, however, take the time to call the local DMV and be absolutely certain of the regulations in your State if you wish to present two Salvage Titles with the other proof of ownership for your custom restored motorcycle.

In many States, the safety inspection required will be more extensive and more costly, but than that required for custom built motorcycles using non-salvaged components. However, the cost is still usually under $100.

When you obtain a Title for a motorcycle which was created from salvaged parts, the Title will most likely carry a description of "Restored Salvaged" or it may continue to simply be state "Salvaged Title". Some States, however, will provide a clean title to the custom build motorcycle, considering it as if it were simply constructed from used parts. Check with your local DMV to learn the exact policy regarding this issue if it matters to you. As long as the State issues you a valid Title, you will be able to register the motorcycle. Therefore many custom builders do not consider it a bad connotation to have a Salvaged Title for their custom ride.

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