What Is an Automobile Salvage Title?

An automobile salvage title includes a notation that the car has been damaged beyond reasonable repair cost. Although it may still technically be drivable, an insurance company has determined that repairs would cost in excess of about 70 percent or more of its market value before the accident. People commonly call a vehicle like this "totaled," meaning it is a total loss.

Damaged Vehicles

An automobile salvage title is issued to a vehicle that has been severely damaged in an accident, fire or flood or has been subjected to destructive testing by the manufacturer.

Stolen Vehicles

Some states issue salvage titles to recovered stolen vehicles.

Cosmetic Damage

Automobile salvage titles can be issued to vehicles that are functional and structurally sound but have severe body damage.

Rebuilt Titles

If the car is restored to proper condition, the owner can have it inspected and receive a "rebuilt" title to replace the salvage title so the car can be driven legally.

Advantages

Buying vehicles with salvage titles is an excellent way for mechanics to obtain parts inexpensively or to obtain cars for rebuilding and potential resale.

Checking Titles

A company called Carfax keeps records of vehicle identification numbers, and they provide reports indicating whether a vehicle has ever had a salvage title (see Resources).

Resources

• Check VIN with Carfax
• Salvage cars for sale