What is a Salvage Title Vehicle?

Posted by Angel on September 6th, 2019

A salvage title indicates that a car has suffered serious damage in the past due to accident or flooding. Cars with salvage titles means that over 75% of the value of the car has been eroded, cars in this category are cheap and an inexpensive option for car shoppers on a budget. However, you have to be sure of what you are buying. If you need a car that is trouble-free, you shouldn’t go for a car with salvage title. 

When a car is involved in an accident with fatal damage exceeding 75% of the value of the car, the insurance company will declare that the car is not economically feasible to be repaired and it is totaled. The Department of Motor Vehicles (DMV) agency will issue a “junk” or “salvage” certificate of the car. This means that the car cannot be sold, driven, or registered in such condition. And this also rules it out to qualify for financing. 

Often times this happen, the insurance company sells the car to a parts dismantler or a repair facility. If the car is repaired, it will have to pass a basic safety inspection by the state DMV before a new car title is issued. The title issued will be a branded title indicating that the car has been rebuilt or salvaged. Hence, anyone buying the car will have an idea of what it has undergone in the past. You can check your state laws and regulations for more information on salvage title vehicles. 

Different Types of Damage

There are several damages that may result in a car getting a salvage title. We will consider some of these damages.

• Hail Damage: Cars damaged by hail can get a salvage car title if the state does not have hail damage.

• Vandalism: If a car is damaged by someone who spring-painted or o0verturned the car and caused severe damage, then the car can get a salvage title. 

• Flood Damage: If a car is damaged by flood, it can get a salvage title and some states will specifically indicate flood damage on a car’s title. 

Other damages that may result in a car getting a salvage title include theft recovery, and a car damaged beyond repair. 

What you Should Do Before Buying a Salvage Title Car

Before buying a salvage title, you should decide what you want. Here are some steps to take before buying a car with salvage title; 

• Inspect the car: This is the most important of the steps needed to be taken in buying a salvage title. Bring a professional mechanic to inspect the car, you can also arrange the car to be taken to a body shop. Having a professional inspect the car will allow you know if the repair works are done properly, it will also let you know what are the things that still needs to be done on the car. 

• Buy from a Reputable Repairer: Search and read reviews to know the reputable facilities around. Buying a salvage title car from a yard that is known for quality repairs is less risky than buying from an individual without a track record. 

• Ask for the Original Repair Estimate: If you want to know the extent of the damage to the car, taking a look at the original estimate of the repair will give you a good idea. 

You must note that if you are buying a car with salvage title, you won’t be able to get financing and you also might find it difficult to get car insurance. Find out more at https://stevejamaris.wixsite.com/mysite/post/how-to-determine-vehicle-equity-value-as-defined-by-the-kelley-blue-book.