A Salvage Title: Why You Shouldn’t Be Afraid

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Auto auctions online, like AutoBidMaster, offer thousands of possibilities (literally) to get your dream car at a bargain.

At AutoBidMaster, we want to eliminate any uncertainties that may occur before you commit to buying a salvage car. We agree that buying a salvage title car has almost always carried a stigma, especially during the age of classifieds. However, times have changed, right? Does the term salvage title make you want to steer clear? Thankfully, there’s no reason to be afraid. In this blog, let’s review the specifics of buying salvage-titled cars in the USA.

What Is A Salvage Car?

Put simply, any vehicle with significant damage that outweighs its actual market value will be declared a total loss and get a salvage title, meaning – the car is salvageable if someone can fix it. However, rules can vary from state to state regarding the amount of damage a salvage title car can have. So, contacting your local DMV for the best information is best.

How Does A Vehicle Get A Salvage Title?

Car titles are issued by an institution known as the DMV, which stands for Department of Motor Vehicles. This institution has all the records for every vehicle registered in the country.

Insurance companies can also issue these titles when they take possession of a car after an accident and decide not to repair it. What is worth noting is that every state has its own DMV. So, if your vehicle is registered in Florida, you can only register it in Florida.

Thankfully, cars issued a salvage title are fully repairable and can be returned to the road. The main difference is that these cars are often valued less compared to clean title cars, and you might also pay more for insurance because of the risk associated with these cars.  If you purchase a salvage title car from an auction, you will receive a rebuilt title once you fix this vehicle and your local DMV has inspected it. This inspection is mandatory for the vehicle to get a rebuilt title. 

Reasons For A Salvage Title

The salvage title is the most common document type in these auctions, and there are many reasons why cars get declared salvage on their titles. So, let’s explore why a vehicle might be given a salvage title:

1. Severe Accidents: A car is likely to be declared salvage following a severe accident. The damage is estimated, and if the vehicle is poorly wrecked, it will be given this title.
2. Natural Disasters: Natural disasters can also damage cars to the point they are declared salvage. Hail damage is the most common reason vehicles get salvage titles.
3. Theft Recovery: Cars can also get stolen, and often they end up with some damage once recovered. In many theft cases, cars are entirely gutted.
4. Repossessed Vehicles: If the owner does not pay their bills, the car can be repossessed by a financial institution. To recuperate some of the money, this institution will auction a vehicle at a salvage yard. Repossessed vehicles are prevalent in salvage yards, and often, you can find cheap salvage car deals because they tend not to have mechanical damage.
5. Fire Damage: Fire damage is often a reason a vehicle is branded as salvage. Cars can catch fire; if it’s a mild fire, they will get a salvage title. This fire often happens in the engine compartment.
6. Vandalism: Vandalism can be common, especially in poorer neighborhoods. Vandalized cars can have smashed windshields, windows, or spray paint all over the vehicle. These vehicles are generally easily repairable and are great candidates for rebuilding into a rebuilt title car.
7. Insurance Write-Offs: One of the most common reasons a car gets a salvage title is an insurance write-off. For example, a vehicle was damaged in a crash, and the insurance company deemed that the car was too far gone to be economically repaired. So, they decide to sell it at an auction. These are often vehicles with severe damage.

A Salvage Title FAQ

Q: What is a salvage title?

A: A salvage title is a legal document given to a vehicle involved in an accident, but also in theft recovery, repossessions, hail damage cars, vandalism, and insurance write-offs. This document means the vehicle will no longer be a clean title car with a clean history. However, salvage titles can, once repaired, get a rebuilt title from the DMV.

Q: Can a salvage car be insured?

A: Yes, these cars can be insured. Once fixed, a salvage title car will receive a rebuilt title. This means that this car is eligible for registration. If a vehicle can get registered, insurance coverage is mandatory. However, some insurance companies don’t want to work with these types of cars or will charge much more than the standard pricing. This is why you should look for an insurance company with the lowest fees. Do your research and find the best offer for your budget. 

Q: Is a salvage title bad?

A: In many cases, a salvage title isn’t the end of the world. For example, a car that has been slightly vandalized or repossessed is not necessarily a lemon. With minor repairs, such a car can be quickly declared roadworthy. However, suppose the vehicle was involved in a serious crash or suffered fire damage and deemed a total loss. In that case, it cannot return to the road easily; ultimately, it depends on the damage this salvage title vehicle has, and cars declared losses by an insurance company are worse candidates than those not, regardless of the title.

Q: Should I get a salvage-title car?

A: If you are willing to put in the work and pay for the cost of repairs of a salvage car, it can be extremely easy to find great deals with minimum damage, such as minor dents and scratches. So, bearing this in mind, you can get a salvage title car. However, once a vehicle receives a salvage title, its value decreases because of the title change. Clean title cars have a clean history, while salvage title cars have a damage history, so bear this in mind.

Q: Can a salvage car be repaired?

A: In short, yes. Keep in mind that it hugely depends on the severity of the damage. Sometimes, there are cases when further repairs don’t make sense. As stated above, repaired cars can get rebuilt/reconditioned titles after a strict inspection at the DMV.

Q: How do I know if an auction car has a salvage title?

A: Each car listed on AutoBidMaster has information regarding its documents on the lot page. Just select a listing, and you will be able to learn the type of title a specific listed vehicle has.

Q: Is there a way to check why the vehicle received a salvage title?

A: Yes, obtaining a ClearVIN VIN Check Report will give you peace of mind. You can find everything about the vehicle specs by VIN, the title history of the chosen car, its photos, and maintenance records. Also, ClearVin offers fast and easy access to the original Jeep Window Sticker by VIN.

The Bottom Line

Buying damaged cars isn’t difficult with AutoBidMaster. We’re ready to help you in every way, from choosing a car to ordering shipping. Check our Copart inventory, and don’t hesitate to register with us if you’ve already found a vehicle you like. Upload a copy of your government-issued ID, place a refundable security deposit, upgrade your membership, and that’s it!

Do you have questions? Contact us at +1 (503) 298-4300 (6:00 AM – 4:00 PM, GMT-8, Monday through Friday), and we’ll gladly help!