What is a used car salvage title?
Salvage title is a term that often appears in used car ads. Before you decide to buy a used car that claims to have such a title, it’s vital that you understand what this entails or you could run into trouble later.
What is a salvage title?
Some cars are damaged in an accident or natural calamity and are unfit to drive. Many owners of these cars dispose of them at salvage yards, which make repairs and replace non-functioning parts to bring the car back to usable condition. However, such vehicles are required by law to be stamped with a salvage title so that anyone looking to purchase such a car in the future knows that it sustained some damage in the past.
For a car to be listed as salvage, the amount of damage it sustained must equal 75 percent or more of its value. However, this figure can vary from state to state. Some states such as New Jersey, Oklahoma, New York, Oregon, New Mexico, Maryland, Georgia, Minnesota, Illinois, Florida, and Arizona also grant such salvage titles to recovered stolen vehicles.
Points to consider
Salvage cars seem attractive to people looking to purchase a vehicle on a tight budget because they are priced much lower than a new model would cost. However, before deciding to make a purchase of this type, it is important to take into account some important points.
- Although damaged parts have been replaced with new ones, there is no guarantee how efficiently the salvage vehicle will run and for how long.
- A used car with a salvage title is not an easy sell if you want to trade it in for a new car, because dealers will look askance at it.
- Check the wording used to describe the nature of the used car being advertised; Some salvage yards that sell them use terms like “salvage” without clearly saying the car has a salvage title.
- Always ask the seller for documentary evidence of the repair work that has been carried out on the car; Avoid buying the car if the salvage yards cannot provide this proof. Almost all states require these documents to be issued in order to grant a salvage title, so if your seller refuses to show them to you, it may mean that you have not actually received the title.
Understanding what a salvage title is is the first step in knowing how to assess the value of a used car with a salvage title. With this information, you can find the correct way to verify the value of said vehicle.
