What is a Salvaged Car?

For many people the term "salvaged car" immediately brings to mind images of junkyard wrecks and rusted-out piles of steel. The truth is, though, that not all salvage-title cars are total wrecks. Actually, they can often represent a real bargain purchasing opportunity for those who know what they're doing.

Identification

Salvaged cars are those who have a salvage title instead of a normal one. The exact formula for determining which vehicles get a salvage title varies depending on legal jurisdiction. In most places, though, a car which has received more than 70% of its market value in damage is referred to as a "salvaged car."

Misconceptions

Many people believe that salvaged cars, junk cars, and rebuilt cars are all essentially the same thing. Actually, though, salvaged cars are simply cars that have sustained a lot of damage but remain roadworthy. Junk cars, on the other hand, are so damaged that they are no longer safe to drive and can be used only for parts. Unlike either of those two, a rebuilt car is a salvaged car that has been repaired and refurbished.

Function

Salvaged cars serve two major functions in society. Many people who own an older vehicle with many miles on it would much rather have their vehicle than its meager cash value. When such a car is involved in an accident, though, the cost of repairing even minor damages might exceed the value of the car. If the vehicle is still roadworthy many people will simply choose to not repair the car and have it labeled as a salvaged car.
The other major function of salvaged cars is their role as the starting platform for rebuilt cars. Rebuilt cars offer a bargain to the buyer and are, in many jurisdictions, state-inspected for quality and reliability to ease the mind of potential buyers.

Potential

Because of the fact that salvaged cars have to be, by legal definition, roadworthy, they represent great potential bargains. Those who are selling a salvaged vehicle often list it at a tremendously low price. This is due to the fact that the salvage title that is associated with salvaged cars will scare off many potential buyers. And, for those who want a more finished product, rebuilt cars are a good in-between option. They offer savings and a better vehicle all in the same package.

Warning

Of course, it is true that salvaged cars and rebuilt cars do have potential risks associated with them. Because of the extensive damage that they have suffered they tend to be far less reliable than other vehicles. Also, some sellers may have an extremely liberal concept of the term "roadworthy" and attempt to sell junk cars as salvaged ones. Those who consider purchasing a salvaged vehicle should carefully weigh such issues before making their final decision.

Resources

• Read this Article in Spanish
• How to Sell a Salvage Vehicle - from eHow