What is a Salvage Title?

A salvage title is a designation given to a vehicle that has been declared a total loss by an insurance company. But what does this mean for buyers, and how does it impact a car’s usability?

How Does a Car Get a Salvage Title?

When a car is involved in an accident, flood, or other serious incident, an insurance company may determine that the cost of repairs is too high relative to its value. In these cases, the car is labeled as a “total loss,” and the title receives a  “salvage” designation. This title then serves as a flag to consumers, indicating the vehicle’s damage history. 

Can You Drive a Salvage Title Car?

A salvage title car cannot be legally driven even if the damage didn’t make the car inoperable. To be ready for the road,  it must first be repaired and pass a state safety inspection. If it passes the inspection, the title can be reissued as “rebuilt,” allowing the car to return to the road.

Why Buy a Salvage Title?

Although a salvage title signals significant damage, it also represents an opportunity. Some buyers and repair professionals purchase these vehicles, restore them to safe conditions, and sell them at a fraction of the original cost. If you’re interested in fixing a vehicle as a project, salvage titles can be a good option, though the general consumer should avoid them. Instead, look for rebuilt titles. These vehicles are road-legal and offer similar savings to salvage titles without needing to be repaired at your expense.

If you’re interested in buying salvage, visit auction sites like CoPart. But, if you’re interested in buying rebuilt, stick with ReVroom, the rebuilt auto marketplace. We make it easier and safer  than ever before to buy, sell, and compare rebuilt vehicles so you can find the best cars, every time.

Curious? Click here to learn about The Benefits of Rebuilt Titles.