A Salvage Title: You Shouldn’t Be Scared Of It

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Auto auctions online, like AutoBidMaster, offer thousands of possibilities (literally) to get your dream car at a bargain. For instance, our customers are given access to more than 300,000 vehicles scattered all over the USA. That said, you can buy repairable cars anywhere, anytime, and right from the comfort of your home.

At AutoBidMaster, we want to eliminate any uncertainties that may occur before you commit to buying your vehicle. We agree that buying a salvage title car has almost always carried a stigma, especially during the age of classifieds. However, the times have changed, right? Does the term salvage title make you want to steer clear from it? Hold on, there’s nothing to be afraid of. In this blog, we’re going over the specifics of buying salvage-titled cars in the USA.

What Is A Salvage Car?

Before we learn the salvage title meaning, let’s start by learning what a car title is. As with anything important that we own, we need to have a legal document of ownership. Also known as proof of ownership.

When it comes to cars, this legal document is known as the title. This piece of paper connects your name to your car.

In this document, all of your information, as well as the information of the car such as the VIN are clearly listed. And the conclusion is that you own this specific vehicle.

What many people don’t know is the fact that there are many different types of titles. These include clean title, salvage title, rebuilt title, lemon, junk title, etc.

And all of these titles have different meanings. For example, a clean title is a vehicle that has a clean record. This means that this car was never in a crash and has a clean history. These cars are the most attractive purchases out there. And also cars that keep their value compared to other types of title.

Now you might be asking, what is a salvage title then? What does a salvage title mean? The definition is simple. Every vehicle that has sustained damage that outweighs its actual market value will get a salvage title.

Let’s put things into perspective. You crashed your car and the car suffered damage that is beyond economical repair. So, the car will be given a salvage title.

This means that if there is a right guy who is able to fix it, the car is salvageable. In other words, repairable. However, rules can vary from state to state when it comes to the amount of damage a salvage title car can have. So, it is best to contact your local DMV for the best information.

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 that is registered in the country.

What is worth noting is that every state has its own DMV. So, if your car is registered in Florida, you can only register it in Florida. Or re-register the vehicle in the new state if you moved.

Nevertheless, these titles can also be issued by the insurance companies, as soon as they take possession of a car after an accident and decide not to repair it.

Let’s say that you crashed your car and the insurance company determines that the repairs will cost more than the actual worth of your car, so they decide not to repair it. They will pay you up in cash for the damaged vehicle and try to recoup their costs through salvage car auctions.

What is important is the fact that this title doesn’t mean that your car is forever gone. Many people do not understand what does salvage title mean and they think that the car is done when it gets this designation. Which is not the case.

Salvage title cars are fully repairable and can be put back on the road. Whenever you want to purchase a salvage title, you shouldn’t be afraid because you can fix it and drive it, just like a clean title car.

The only difference will be the fact that these cars are often valued less compared to clean title cars and you might also pay more for insurance because of the risk with these cars. Overall, these are the main differences.

If you decide to purchase a salvage title car from the auction, once you fix this vehicle, you will get a rebuilt title.

But in order to do so, the car has to be inspected by your local DMV. This inspection is mandatory for the vehicle to get a rebuilt title. Overall, these inspections are nothing too scary if the car is repaired as it should. If not, you will be given a second chance to repair the car properly and bring it back for another inspection.

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 branded salvage on their titles. So, let’s cover these reasons in the following chapters and learn why vehicles get salvage titles.

1. Severe Accident: One of the most common reasons why a vehicle will be branded as a salvage title is because of a road accident. The damage is estimated and if the car is wrecked badly, it will be given this type of title.
2. Natural Disasters: Natural disasters can also brand vehicles as salvage titles. For example, hail damage is the most common reason why cars get salvage titles.
3. Theft Recovery: Cars can also get stolen. This happens very often and when they are stolen, they end up with some damage. In many theft cases, they get completely gutted.
4. Repossessed Vehicles: If the owner does not pay their bills, the car can also be repossessed by some financial institution. So, in order for this institution to recuperate some of the money, they decide to auction this vehicle at a salvage yard. Repossessed vehicles are extremely common in salvage yards. These are often great deals because they don’t have mechanical damage.
5. Fire Damage: Fire damage is often a reason for a vehicle to be branded as salvage. Cars can get on fire and if it’s a mild fire, they will get a salvage title. This fire often happens in the engine compartment.
6. Vandalism: Cars also get vandalized very often. Especially in some poor neighborhoods. There can be smashed windshields, windows, or spray paint all over the vehicle. But in general, these vehicles are easily repairable.
7. Insurance Write-Offs: Also, one of the most common reasons why a car gets a salvage title is an insurance write-off. The car gets crashed and the insurance company deems that the car is too far gone to be economically repaired. So, they decide to sell it at auction. These are often vehicles with severe damage.

Overall, salvage titles should not scare you, the thing that you should worry about is the source from where the car comes from. Since some sources are very good. For example, repossessed vehicles are solid vehicles that somehow ended up at the salvage yard, not by their fault.

Vandalized vehicles can also be fixed for cheap if the damage is relatively low. Theft recovery vehicles can sometimes have minor damage as well.

A Salvage Title FAQ

Q: What is a salvage title?

A: A salvage title is a legal document that is given to a particular vehicle. Specifically, a vehicle that was involved in some accident in most of the cases. But salvage title cars can be cars that are theft recovery, repossessions, hail damage cars, vandalized cars, and insurance write-offs. This document means that the vehicle will no longer be a clean title car with a clean history. But instead, salvage titles that once repaired will get a rebuilt title from the DMV.

Q: What does a salvage title mean?

A: A salvage title means that the vehicle is no longer a clean title. This vehicle has suffered some kind of damage that changed its legal status from clean to salvage. This type of vehicle can be repaired and put back on the road. Once properly repaired, the car will go to the DMV for inspection. Then, the inspector will issue this vehicle a rebuilt title.

Q: Can a salvage car be insured?

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

Q: Is a salvage title bad?

A: Many of you are asking is salvage title bad? Well, this depends. A salvage title cannot necessarily mean that the car is bad. Let’s make an example. A car that has been slightly vandalized or a repossessed vehicle cannot be said that it’s bad. With only minor repairs can be put back on the road. If the car was involved in a serious crash or suffered fire damage, it cannot be easily put back on the road. So, it really depends on the type of damage this salvage title vehicle has.

Q: Is it worth buying a car with a salvage title?

A: Definitely, yes. There are plenty of good salvage auctions out there that have some really nice cars.. If you have a childhood dream car, this is a good way to obtain it for a relatively low amount of money, fix it, and enjoy it. You can also fix these cars in order to make a profit. But for this, you need to improve your skills and learn how to rebuild cars in your garage.

Q: Should I get a salvage-title car?

A: Yes, you should get one, especially if you are interested in wrenching on cars. These days it is extremely easy to find salvage cars with minimum damage. We mean, they can have minor dents and scratches or some other insignificant issues. But what is worth noting is the fact that once a car gets a salvage title, its value decreases because of the change of title. Clean title cars have clean history, while salvage title cars have a damage history.

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 we 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 open up a listing and you will be able to learn the type of title a certain 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. Make sure to check what we’ve got in our daily-updated inventory. Don’t hesitate to register with us if you’ve already found a vehicle to your liking. 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 online or give us a call at +1 (503) 298-4300 (6:00 AM – 4:00 PM, GMT-8, Monday through Friday), and we’ll be glad to help! Happy bidding!