subject: Understanding Used Car Salvage Titles [print this page] Understanding Used Car Salvage Titles Understanding Used Car Salvage Titles
The whole concept of auto salvagingis open to misunderstandings andincorrect information being sharedif oneis unfamiliarwith what exactly he/she is doing. Below, we have presented some information on understanding used car salvage titles.
First, note that the whole process of determining whether a vehicle is salvage or not practically varies from state to state.
A salvage title is explained to be what is issued by a state when the cost of repairing a damaged vehicle is thought to be higher than its cost price.Insurance companies come into play here as they are the ones that deem the repair price higher and classify the vehicle as a total loss.
Technocrats in the field have recommended extreme care when buying a salvagedvehicle as there may beunmentioneddamage whichmay cause the vehicle to be totallyirreparable. If one for example,wished to get a2002 Honda Accord worth $20000and it sustains damage in the amount of $15000, itwill be givena salvage title and branded unfit to be driven. How the vehicle came to be renderedas salvaged willsometimes tellhow you enjoy your purchase -Was the vehicletotaled? Was this vehicle stolen? Certain dealersmay transport vehiclesbearing salvaged titles across state lines. The vehicle then may be deemed fit once it reaches the new state and sold to an unsuspecting consumer. Remember,a vehicle that has a salvage title will behaving a lesser price when it is sold, and afterwards might be difficult to sell again. In the same light, some vehicles bearing salvage titles mayprove to bea worthwhile purchase. Insome states, a salvage title is only given when the vehicle is totallydamaged. In a few other states,laws mandate stolen vehicles to have a salvage title.
Some states will givea 'junk title' when this happens. It is suggested that oneshouldinvestigate the extent of the damage to the vehicle by the resale price. If the vehicle has a price of $6000 and has a sale tag attached for $10000, then one can easily assume a range of problems. A prospective buyermay not know thefull history of the vehicle and could end up making a regrettable purchase. It is therefore important that one gets all relevant information on the vehicle of interest. Arizona, Georgia, New Mexico Illinois, Florida, Maryland, Minnesota, New Jersey, New York, Oklahoma, and Oregon are known to be able to pick up stolen vehicles by running their salvage titles.
