Definition

Salvage title is the moniker used for cars being sold after having been reported as totaled by in insurance company. A salvage title car may be restored before the sale or may be sold as-is. The term "junk title" can sometimes be used interchangeably with "salvage title", though it usually means that the car is not in drivable condition.

Laws

Laws for salvage title vehicles vary from state to state. In most locations, in order to qualify for a salvage title a vehicle must have sustained 75 percent of pre-damaged value as appraised by an insurance company.

Theft

The following states also use salvage titles to identify stolen vehicles: Arizona, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oklahoma and Oregon.

Sale

Vehicle rebuilders will often purchase salvage title cars to restore and sell for a profit. After restoration, the vehicle will continue to have a salvage title on its record and may be difficult to insure. Most states require an inspection before allowing the car to be sold once restored.

Identification

In recent years, CARFAX has helped potential buyers discover the salvage designation on used vehicles. CARFAX, however, cannot provide detail on cars that are salvaged or stolen within all states.

Source:

Information on Salvage and Restored Vehicles

Salvage Definition

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