What Does a Salvage Title Mean?

Buying a car with a salvage title can be risky.

A used car with a salvage title was counted as a total loss and has been refurbished into working condition. If you buy a car with a salvage title, it is likely to have been in a large accident or received other extensive damage and had many original parts replaced.

Definition

A salvage title is given to a car for which the repair cost is higher than the vehicle's value.

Causes

The main reasons for which a salvage title is issued are major accidents, floods and damage done to a stolen vehicle.

Used Cars

Sometimes salvage cars are brought back into operating condition and resold as used cars. They are often sold at a price that is far below what a similar car without a salvage title would sell for.

Considerations

Some salvage cars are good purchases because their damage was primarily cosmetic, such as in a large hailstorm. However, keep in mind that if you ever plan to resell a car with a salvage title, it will likely be difficult to get a good price.

Insurance

Beware of buying a used car with a salvage title because many insurance companies will not insure the vehicle. This is because it may not be a reliable or safe vehicle because of the damage it had.

References

• Salvage Titles