How Does Having a Salvage Title Affect Resale Value?

Salvage-Titled Car Has Been Severely Damaged

A car that has a salvage title is generally viewed with a hefty amount of suspicion in regards to its structural soundness and integrity. The reason for this is due to the fact that a salvage title is bestowed only upon cars that have suffered major physical damage. Generally, a car has to sustain body and/or frame damage that costs at least half of what the car is worth to fix in order to qualify for a salvage title. Major vehicle structural damage is oftentimes hard to adequately repair, and many salvaged titled cars, while being completely drivable and functional, are never as structurally sound as before they were damaged. Many times a car that sustains that much damage will simply be junked or sold for parts. Insurance companies seldom pay to fix a car that qualifies for a salvage title. Therefore, reselling a car with a salvage title is very difficult to do, as most car buyers are looking for cars free of any major structural/body defects or issues.

Salvage-Titled Cars and Questionable Safety/Operational Concerns

A car with a salvage title can be repaired to the point that it resembles a brand new car. Many times, a car's body or frame damage, while extensive, can be brought back to pre-damage specifications and made to operate and function as good as new. However, that may not be the case. If a car suffers significant frame damage--either a warped, cracked or severely bent frame--no amount of repair can bring the frame back to normal, like-new structural strength and shape. There will still be slightly crooked and/or bent spots, and the frame is likely to be less structurally sound and more prone to warpage than a non-damaged car frame. These types of salvage-titled cars are viewed with healthy skepticism about not only their safety reliability, but also their chances of offering a long, trouble-free car life. As a result, selling a car with a salvage title is likely to generate significant apprehension on the part of any potential buyers, which translates into a significantly reduced resale price.

Resale Value of a Car with a Salvage Title

The bottom line is that a car with a salvage car title is going to be much harder to sell than a car that has a clear title. In addition, a car with a salvage title is going to sell for significantly less money than a car with a clear title would. Prior major frame and/or body damage, reliability concerns, safety and structural concerns--these are many of the issues that negatively affect the resale value of a car with a salvage title.