Well, yes, they can't salvage the car until you turn the title over to them. If you're keeping the car, they'll have the title changed to a salvage title, which should then be mailed to you.
Ask them to make the payment to you, and hold back $500 for the title. Then after you get MOST of the payment, you'll mail the title to them (delivery confirmation), and after they get the title, they can mail you the check for the last $500.
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