PhilipMSPT

iTrader: (5)

What criteria would give a car a salvage title?

How do minor damaged cars get a salvage title? Stolen cars with absolutely no damage? Is it possible to get a salvage title with absolutely nothing wrong (damaged) with the car?


EDIT: Also, how does having a salvage title affect registration, insurance, and other pertaining automotive concerns???


(And I'm not planning to buy a salvage titled car; I've just don't know diddley-squat about it...)

TwiBlueG35

First of all, I am not saying anything to encourage you to purchase a salvaged titled vehicle, I am simply stating my personal experience.

My first vehicle was a 1995 Honda Accord EX V6 sedan with salvaged title. I bought it in 1997, so it was a two years old car with 8000 miles back then. It was one of the best vehicle my family had ever bought because throughout the six and a half years we owned it, almost nothing went wrong. The seller told me that the reason it had a salvaged title was that it was stolen and before the police recovered the car, the insurance company had already compensated the money to the original owner. And the car was given a salvaged title and put into auction. Of course the car was sold at a very good price otherwise we wouldn't take the risk of buying as possible troubled car. The front seats were stolen so the seller had to find another pair from the other used Accord. And he told me the car had absolutely not been in any kind of accident. The test drive was very nice and I was convinced that the car had not been in at least any kind of big accident. And it turned out the car was trouble free and even now I still miss the creamy ride and that smooth 2.7L V6 engine. Yeah it was a risk, so to answer your question, it is possible to buy a salvaged title car with absolutely nothing wrong with it.

But there are still many salvage titled cars had actually been in big accidents. So must be very careful and better hire a licensed mechanics to check the car before making decision.

Och

iTrader: (3)

Well, just like TwoBlueG35 said - it is possible to find one, but it will vary from case to case. Most of the salvage title cars are either stolen and stripped, flooded or wrecked, and insurance companies find repairs to be more costly then the value of such vehicles, and salvages them. However many of those vehicles undergo repairs, and are sold significantly cheaper than car with clean titles. But often there are a lot of corners cut during repairs to keep the costs down, so buying one of those is a gamble.

Another thing to keep in mind, is the resale value. Sure, some of these salvage title vehicles have very attractive prices, but dont forget that they depreciate badly, so unless you're planning to drive one til the end, it doesn't make sense financially to buy one.

mmarshall

Salvaged titles can come from a number of sources. One of the most common is flood damage. Huricane Katrina, for example, caused hundereds of thousands, perhaps millions ( I don't know the exact number) of flood-damaged vehicles. In fact, unscrupulous owners or used-car shops will sometimes try and hide the damage and sell off these water-logged lemons as normal used cars. CarFax reports will sometimes catch this, but not always.

(Sorry, Och...looks like we both posted at once, and said pretty much the same things).

thetopdog

A few months ago I heard about a guy that had his car salvaged because it was keyed (in fact, I think I heard about it on this forum). Apparently the cost to fix the scratches was worth more than a certain percentage of the car's value (obviously the car wasn't worth that much) and the insurance company didn't think it was worth it to fix. I'm pretty sure that if the cost to repair exceeds some pre-set percentage of the car's wholesale value, it can be salvaged even if the damage isn't that critical

Lexiss_sc430

iTrader: (2)

Here are some basics that I know;

I work for an insurance office here in LA, and we pretty much do it all when it comes to insurance.

Depending on the insurance company and the car in question usually there is a 60% threshold (give or take a little based on situation). If the vehicles damages add up to more than 60% of the vehicles value then it will be declared a total loss.
Some insurance companies only use oem parts for their insured’s vehicles, so that 60% is reached much quicker. Some other lower end companies use any parts that they can get their hands on for their vehicles in order to keep costs down (ie: junkyard cars, aftermarket parts, ect).

stolen vehicles have their own set of criteria also, if as stated above the car is stolen and not found within a certain time frame the insured is written out a check and the car is automatically declared a total loss.

Flooded vehicles also are rated on how much water has made its way into the car, if the engine is still running or not, if the electronics are fried, ect...


As far as insurance companies go, there are a slew of rules and regulations when having a salvaged vehicle insured. Pretty much all ins companies will have a surcharge for having a salvaged title vehicle, no matter what situation if we click that button the rates jump 10-30%. Some companies will not offer you full coverage on a salvaged vehicle, some limit the bodily injury limits also in fear of the vehicle not being safe enough for the occupants.

The companies who do offer full coverage will not reimburse you the full value of the vehicle upon an accident; they will use the salvage value or take the market value and deduct a percentage.

This is all I can remember for now, hope it helps

MD350

Might I add it will be difficult to get a loan on the car (if needed). There are many auto finance companies, including the one I work at, that will not finance salvaged titled units.

Sometimes, the risk is outweighed by the reward on these cars. Many times it is not. Be very careful! I have heard too many horror stories.

4TehNguyen

iTrader: (1)

depends what reason it was salvaged for, if it was body damage, then could be ok. If it was mechanical damage, oh boy avoid like the plague