Should You Be Worried About A Salvage Title?

When you're out shopping for used cars, you may come across a vehicle with a salvage or branded title. What this essentially means is that the vehicle has suffered some pretty serious damage in the past, with the damage being extensive enough that the damage exceeds a percentage of the car's value. The percentage varies depending on the insurance company, with some deeming 75% of the car's value sufficient to declare it as a 'total loss'. This includes damage from being crashed, or it could also include severe flood or hail damage. In rare circumstances, it may even be a totaled car.

It is required that a car seller in the USA report and document this information. In any situation, having a complete history of a vehicle is important. But, if a car has been in an accident, you need to know that you aren't getting a lemon that is going to give you endless trouble in the long run. If you are willing to buy salvage-title cars, you can find some really good deals, but you need to weigh the risks against the benefits.

Not all damage is the same, meaning that some salvage-title vehicles are a safer choice than others. Once you have identified some cars for sale with a salvage title, it is important to look over the report and see what you're dealing with. Here are the different types of damage you are likely to encounter when buying a salvage-title car:

• Crash damage: Not every accident results in a totaled car. But, depending on the extent of the damage, your insurance may deem the repairs to be too costly in comparison to the value of the car. In this case, the car may be sold in that state so that whoever buys it can repair or rebuild it themselves. This is one of the more risky types of salvage title vehicles to purchase, though, so be extra careful when looking at crashed cars for sale.
• Weather damage: While your warranty will likely cover corrosion, other damage from the elements is often up to you to repair. A little hail damage shouldn't be a serious problem - a trip to the panel beater will likely solve it. However, flood damage is rather more serious as it can compromise the mechanical components, and such extensive damage is sometimes even attributed to weather damage on the title.
• Vandalism: This could be anything as innocuous as an impromptu spray paint job, or even a car that has been tipped over like a cow. As such, damage can vary, but this is seldom explained in the salvage title. Be sure to find out exactly what happened before you sign anything.
• Theft recovery: Every so often, a stolen car may show up long after your insurance has paid for a replacement. In such circumstances, you do not get the car back. Instead, your insurer gets to sell it to recoup some of the costs, so long as they ensure it is properly labeled as a salvage. It might even be sold at an auction rather than directly.
• Total write-off/Non-repairable: When the damage to a car is too severe, it is classified as non-repairable. This is basically the meaning of a totaled car. Some such cars are rebuildable, but for the most part, they are junkers. Junk cars for sale can make for great projects, for those who have the patience and skill, but any remaining value is usually found in their usable parts.

You can definitely save some money if you are willing to buy a car that has a salvage title. But, there are going to be some downsides. A totaled car that has been rebuilt is particularly risky. Here is a quick breakdown of the pros and cons when considering salvage-title cars for sale in the US:

You won't likely find salvage or rebuilt title cars for sale at your local dealership. There are several websites dedicated to this market, and you may be able to find adverts in the local classifieds or online forums.

Another great place to find these diamonds in the rough is at auctions. Whether the car with a salvage title is being auctioned off as-is, or an insurer has repaired the salvage-title car and is selling it off to recover costs, you're likely to save money. A salvage-title Lexus RX, for example, can be had at half of the price as-new, depending on the extent of the damage. You can find anything from small sedans to midsize trucks this way. Just be wary of independent sellers who may not give you all the information you need to make a smart decision.