Salvage Title Vehicles: What You Need to Know Before Buying

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Most of us think about saving money when buying a new car. And guess what? There are many ways to do so! If you really look for cars with the intent to save money, you might have come across salvage title cars at least once. That is because these vehicles are available for sale at very low prices as they have a history of suffering from significant damage in the past.

If you are handy and enjoy working on cars, you might want to buy a salvage title vehicle and start a project. Although this may sound like a good idea, it comes with its own set of challenges or disadvantages. At The Car Spec, we are here to help you learn more about salvage title vehicles. Continue reading the blog to find out salvage title meaning and if these vehicles are worth buying!

What is a salvage title vehicle?

A salvage title vehicle is a vehicle that has been involved in a major incident like a road accident, flood damage or theft, and the insurance company has deemed it too expensive to repair and a total loss. The only good thing about these vehicles is that they appear to be a good used car bargain as they are often available at prices that seem too good to be true.

Do you know what this means? It means you can buy salvage title vehicles for much less than market value. However, if a car has a salvage title, they come up with several risks. Therefore, if you are willing to buy a salvage title car, it is important to consider a few factors. Jump to the next section to know these factors!

What factors should you consider when buying a salvage title car?

Here are some tips you should consider when shopping for salvage title cars to ensure you do not waste your time or money on a vehicle that is not worth it:

• Get a full inspection:

Bring a mechanic with you and consider getting a complete car inspection. You can also take the car to a body shop as a car professional will better help you find any potential red flags. 

• Purchase the vehicle from a trusted repairer:

Look for online reviews of the repairer selling the salvage title vehicle rather than buying from a facility without a track record of happy customers. 

• Ask for the original repair records:

The original repair records can help you determine how extensively the car was damaged. Moreover, doing so will also show you the replaced car parts and how serious the accident was – or if there is no accident history and the damage occurred differently.

• Get a vehicle history report:

Running a vehicle history report is the best way to know if a vehicle has been salvaged. The report will also help you know when and where the accident happened. 

Also Read: Car Buying Features Checklist: Features You’ll Want In Your Next Vehicle

What are the advantages of buying a salvage title vehicle?

Although buying such a vehicle is a risky proposition, it can also haves some benefits, such as:

• Low prices: Due to their damage and less demand, salvage title cars are often priced low. This can be a bargain if you are not concerned about the appearance of the vehicle. 
• DIY fixes: Car enthusiasts or mechanics can find value in restoring salvage vehicles, especially rare classic models. 
• Spare parts: Salvage cars can be a cost-effective source of parts, particularly for older models or hard-to-find components. 
• Potential Deals: Sometimes, you might find a salvage vehicle with minimal damage priced well below its true value.

What are the risks of buying a car salvage title car?

As we already discussed in the blog above, salvage title cars are risky. Here are some disadvantages you should know when buying salvaged cars: 

• Safety: Salvage title cars may have severe safety issues due to previous damage and subpar repairs. That is why they are banned in some states, and obtaining insurance coverage for such cars is difficult. 
• Resale challenges: Salvage title vehicles have limited resale options and low trade-in value. This makes them difficult to sell for a good price later. 
• Insurance difficulties: Finding insurance for salvage title cars can be challenging. Moreover, they may not be street legal in some areas. 
• Repair costs and reliability: Restored salvage cars may still have some unresolved mechanical problems, which can add to ongoing repair costs and potential unreliability. 
• Fraud risks: Sellers may deceive buyers about the condition or repairs of salvage cars. Therefore, it is crucial to buy from a reputable seller.
• Financing issues: Generally, lenders hesitate to finance salvage title cars, so you may need to pay in cash. 

Conclusion

The above blog clearly reflects that buying a salvage title car is risky as you are buying a vehicle that has undergone significant damage. The full extent of that damage may be unknown until further tested in a collision.

Therefore, if you are an average consumer, you should think twice before purchasing a car with a salvage title. However, if you do not want to make a dent in your pocket or need car parts, you can go for it. Just do not forget to do your research and stay safe on the road! 

Frequently Asked Questions (FAQs)

Q1- What is a rebuilt salvage title?

Ans. Salvage title vehicles can be repaired and returned to the road after passing the state’s safety inspection. But before doing so, the repairer must get a brand new title, called the rebuilt salvage or restored title, issued from the Department of Motor Vehicles.

Simply put, while the term “salvage title” is often used when talking about a used car with a checkered past, what you are buying is actually a rebuilt salvage title. 

Q2- Why does a vehicle get a salvage title?

Ans. There are many reasons why a vehicle might get a salvage title. Here are some:

• Flood damage: While some states will specifically call out floor damage on a car’s title, other states may give vehicles damaged by flood a salvage title.
• Theft recovery: If a stolen vehicle gets recovered after an insurance payout, it may get a salvage title if sold to a salvager. 
• Hail damage: Vehicles with hail damage may receive a salvage title if the state does not have a specific hail damage designation.
• Non-repairable: Severely damaged and non-operable vehicles may get a “non-repairable” or “junk” title to indicate they cannot be repaired and must be scrapped or destroyed. 
• Vandalism: Although no state titles specifically for vandalism, vehicles damaged by vandalism might receive a salvage title. 

Q3- Should I buy a car with salvage title?

Ans. Considering the advantages and disadvantages of buying a car with a salvage history discussed in this blog, the pool of ideal buyers is undoubtedly small. Only buy a salvaged vehicle if you are someone who:

• Have enough mechanical knowledge and know how to repair cars
• Is planning to keep the car for a long time
• Already has a car and needs a second car to use it rarely
• Know the seller and have complete knowledge of what happened with the car

Also Read: What To Look For When Buying A Used Car?