subject: Understand what a salvage title is [print this page] Understand what a salvage title is Understand what a salvage title is
The whole process of auto salvaging can be a tedious and sometimes futile process if one does not understand what exactly he/she is doing. As such, we have compiled some information that will help you understand what a salvage title is.
Within the jurisdictions of the United States, a salvage title is characterized as a means of classing a vehicle that has been severely damaged and has been written off by an insurance company who paid a claim on the damaged vehicle. The method of determining the state the vehicle must be in to be defined as salvaged is known to vary from state to state. In a few states, legal regulations require stolen vehicles to have a salvage title. In other states, a salvage title is issued when the vehicle is damaged.
How Does This Affect The Consumer
Laws governing salvage titles vary from state to state. Certain dealers of vehicles will bring vehicles with salvaged titles across state lines resulting in the vehicle being rendered 'clean' once it reaches the new state. A prospective buyer does not know the history of the vehicle and could end up buying a faulty one. Conversely, some vehicles with a salvage title may be a worthwhile purchase. The circumstances which rendered the car as salvaged will determine how you enjoy your purchase. Was it totaled? Was it stolen? It is worthwhile to assess the damage of the vehicle by the resale price. If the vehicle has a price of $50000 and is being sold for $5000, then one can assume a mountain of problems. Bear in mind, that a vehicle with a salvage title will be worth less at resale, and might prove difficult to subsequently sell.
It is cautioned that due to the fact that salvage titles can be issued to a vehicle with no problems or problems that can be easily repaired, the relatively low cost of a salvaged vehicle might be appealing to certain persons.
Professionals have recommended due diligence when purchasing a vehicle with a salvaged title as there may be hidden damage which renders the vehicle irreparable.
In most cases, a salvage title may be granted to any vehicle that damage of 75% or more of its value. For example, a BMW x5 worth $10000 sustains damage in the amount of $8000 will be branded with a salvage title and deemed not fit to drive. Some US territorial states issue a 'junk title' when this happens.
States such as Arizona, Georgia, New Mexico Illinois, Florida, Maryland, Minnesota, New Jersey, New York, Oklahoma, and Oregon identify stolen vehicles by their salvage titles.
