MyCarlady answers FAQ on Salvage Car titles on Answers dot.com

What is a Vehicle Salvage Title?

This means the car was in a wreck and the insurance company considered it a total loss. The insurance company paid the owner off and then sold the car as a salvage. This car may in-fact be two or even three vehicles put together and sold under a salvage title based on the engine id number matching the title. Beware, a salvaged title indicates the structural and/or  mechanical integrity of the car may not be up to manufacturer and federal safety mandates. However, in some cases the vehicle may be totaled and considered a salvage if the less extensive damage to the car is more costly than it’s value. This often happens when a car is older. The only way to know what you are getting in a salvaged titled car is to have an independent, trusted mechanic/body shop look it over carefully.

Can you get a title loan on a salvage title?

Most banks or independent title loan companies will NOT give you an AUTO loan or consider the car as collateral on a Salvage Title car.
Some dealerships have been know to sell salvage title vehicles and submit the title for a loan, unbeknownst the bank or the vehicle’s owner. This is not illegal in some states.
Always ask to see the title when purchasing a used car from an unknown dealership.

WHAT is the VALUE of a Salvage Title car?

There is no Blue Book for a salvage car, however the general rule of thumb in the industry is 25-45% of the private party sale value posted on Kelley Blue Book or NADA Book. If the odometer is not working as part of the salvage title issue, you can expect approximately .10 on the dollar. Most dealerships will not sell a salvage car taken in on trade, they will send it to auction where it will be purchased for parts. If you see a car posted online for sale at a price considerably lower than the marketplace, ask if the title is salvage or rebuilt. Likely it can also be a LEMON-LAW BUYBACK. Under any or all of these situations, it is BUYER BEWARE. Tread carefully and have the car inspected by a trust-worthy, independent body shop.  Better than a regular repair shop mechanic, body shop mechanics see structural damage as well as checking the operational side of the vehicle for electrical issues. So there you have just a few of the most asked, now answered questions on Salvage Titles.   Sarah Lee Marks is MyCarlady. She has over 22+ years of experience. She writes about cars, and is a staunch consumer advocate on car related subjects. Call Sarah Lee for more information: 702-521-7546. Join the MyCarlady newsletter to be kept up-to-date on this and other important car information.
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