I haven't done it here in Colorado, but have flipped 3 bikes in other states that were salvaged. This is how it works in Mass, MI, and PA.
The insurance company will give you an itemized list of EVERYTHING that they think is wrong with the bike (right down to orings on on pegs). You will have to replace EVERY item on this list
SAVING RECEIPTS for everything you buy (an ebay receipt from a private party does not work). Once this is done, you'll trailer it to an inspection station (I believe that Colorado state police do the inspections here). They will check the insurance report, your work, and ALL your receipts. They will decide if the bike is safe and parts not stolen.
Some states will assign a new vin, others will just stamp salvage on the old title (both ways will be a salvage title).
You'll then look for an insurance company (progressive will insure salvage bikes, but only compulsory insurance). You'll then pay taxes and fees at the DMV and get your plate.
PA was awesome, MI and MA sucked
I'm the 5%...I have no problems buying salvage BUT keep in mind that the value is about 60% of a clean title, and if you do try and sell, the buyer will be unable to get a loan on a salvage bike.
ALSO here's some advise. Take LOTS of pictures both of the damage and your repair. If you show how minor the damage was in one picture and show a good quality repair in the next...the bike will be much easier to sell when the time comes-you may even get better money for it that way






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