Technical What does a salvage title do to value of car?

I have been for a while wondering what a salvage title does to the value of a car. I understand that a car with one has been stolen or in a wreck but what negative affect does it have-especially in Ca. I thought I would ask the gurus on this site. Thanks. Exterminator

 

Just my 2 cents {which I am not sure is true} but I always thought a salvage title was only good for a car for parts and never be road worthy again. I COULD BE WRONG on this. I see these high priced cars and trucks on Craigs list going for big $$$$ and they claim to have a salvage title. Who would pay that for a car or truck?Good question Exterminator. Bruce.

 

If the titles legit and it's a car I really want/like, wouldn't matter to me.

 

While salvage titles vary from state to state, I'd be curious as to what effect it may or may not have on your insurance.

 

My wife's cousin who is a state farm agent said they insure salvage titled cars.

 

I made part of my living for many years, rebuilding cars that had been processed by insurance companies, and issued a salvage title in the state of Missouri. The value of the car is less than one that has never had a salvage title but if it were a car that is covered by this internet site, I doubt it would have little affect on the value. Most of the time I could sell a rebuilt auto with a prior salvage title for about wholesale price. If you are able to do the work yourself and you intend to drive the auto until it is used up, it is a great way to save money. I just helped my son fix a salvage titled Outback.

John

 

My reference is in New York state.For years i repaired late model wrecks.When a car has been determined to be a total loss it can not be titled until it undergoes a special state inspection.After it passes the inspection you are given a new title.For years,you would get a regular title that did not reflect that the vehicle had been wrecked.Then they started comming through stamped "SALVAGE".This way a prospective buyer would know that the vehicle had been rebuilt from a wreck .This also applied to vehicles that had been stolen then recovered and had been totaled as a result of being stripped of thier major componant parts and flood vehicles.I would be very concerned about buying a vehicle with a salvage title especially if i didn't know the history of the vehicle. Interestingly,the main thrust of the special state inspections was to determine if stolen parts were used in the rebuild and not necessarily the quality (and safety) of the repair work

 

So, recently had an experience with this. Sure there are many different stories out there, but here is mine. My son had his '97 BMW 750iL legally parked on an uptown Charlotte street where it was side-swiped down entire driver's side. Car was only worth about 5K, and insurance considered it a "total". It is a "total" if repair cost exceeds 75% of the car's value.
Insurance company gave us two options: 1) give us a check for 5K but they take and scrap the car, or 2) give us a check for 4.5K and we keep the car, but the title must be changed to a salvage title. We chose option 2, and repaired the car for 2.8K.

So, here is a case where the repaired car is every bit as good as the pre-wreck car, because the damage was all superficial body damage, but the car now has a salvage title. As a buyer, I would be very skeptical of a salvage-title car, but it does not necessarily mean that the car itself is any worse, you just need to investigate the reason why.

As far as answering the OP question, I do not know for sure, but common sense says the car would have less value with a salvage title.

Oh, and yes, it does affect insurance. By taking option 2 (above), we were no longer able to carry comprehensive/collision, we were only able to carry liability only, at least that is the case in NC.

 

in Wisconsin salvage title just means that it was cheaper for the insurance co. to pay out versus getting the cars fixed for the people. With the labor being so high to cover all these fully staffed state of the arts equipment and shops I see cars being totaled that can be fixed fairly cheap by an individual person at home with their primitive tools that resale prices of salvage cars have risen. Prices of new cars attribute to this too I guess.

years ago salvage cars were more destroyed(structurally too) and when repaired they only brought about half of what a non salvage car did. but now today when they total cars for simple body damage and no structural problems and you just need to change a fender, bumper and hood or something like that they only bring slightly less than non original especially when you have pictures showing it wasn't an actual "TOTALED" car.

Then you go to the old cars that are totally rebuilt from the groundup that has every nut and bolt pulled out, inspected,repaired or replaced and sold at these big name auctions as restored or street rodded where does it stop being that salvaged car? it is probably safer now then when it left the factory new.

Just like having George Washington ax that the handle was replaced twice and the head 3 times, when does it become not original?

 

My daughter owns a State Farm Agency in Wisconsin, they insure salvage titled vehicles!

 

There's a difference between salvage title and prior salvage title. Salvage title can't be registered. I think most states allow for inspection of a repaired salvage vehicle to obtain a registerable prior salvage title. There is also a junking certificate which is more difficult to get around. There is a stigma around Salvage vehicles mostly among people that don't know anything about cars. Some lenders won't loan on them some insurance companies also penalize for them. This is all from my experience in the state of Iowa. Your state may differ. Personally salvage title doesn't bother me. I buy wrecks and do the repair myself ps I know it was done right. I usually drive the life out of my stuff so the resale value isn't a concern. I think the older and less valuable the car is the smaller the effect of the salvage title.

 

Not all insurance companies cover salvage titles. Even if covered usually will not offer full coverage. If in an accident prior damage will be taken into consideration before pay out. As a buyer you do not know for sure was damage was and repairs done. Salvage cars sell for less.

Sent from my SM-G930V using The H.A.M.B. mobile app

 

I agree with most of what's been said. But none of this pertains to on topic stuff.
Sure it lowers the value of late model stuff. But doesn't make too much of a difference on old "junk".


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Late model it effects the value quite a bit, meaning it will sell very slowly and you gotta keep dropping the price. With all the title check websites its easy to see the history.

If you want to buy, fix, resell one, take a lot of pics that will show the buyer what was damaged and how it was fixed.

If youre thinking about buying one, check the work and plan on a slow resale or just drive it forever.

Vintage drivers are generally rebuilt /restored to some level anyway, dont think it has as much impact.

Funny story on that, guy I knew was selling 5.0 mustang in the 90's, it had been wrecked about 6 times, no one would touch it. I stopped by the bodyshop, the owner, who I knew, said over the past few years the car has had every exterior panel replaced with ford sheetmetal, entire front suspension is a year old, is dead straight on the frame machine and the last time it was in, they just reshot the entire car due to so many paint matches.

I was able to buy the car for about half price, drove it for a few months and doubled my money.

 

WOW I never knew that.I guess I WAS wrong.Bruce.

 

John.Interesting.ThanksBruce.

 

As stated, salvage titles are issued after a total loss......so if a pre '64 vehicle had a salvage title I'd sure want to know why. Would depend on the details and how it was repaired as to what the car was now worth.
A salvage title would only concern me if I planned to re sell it in the future.

 

It's funny how you can take an old car and reconstruct it ---replacing just about every component--- and not have a salvage title. Take the same car and place an insurance claim (for wreck, fire, flood, etc,) and then it gets a salvage title.

I had a friend who purchased a Mercedes Benz through an auction site. The car turned out to be a Twofer, meaning that they took two wrecked cars and made one, and he didn't discover it until the trunk carpeting was removed. For some unknown reason, the title was clear.

As far as impact on value, beauty is in the eyes of the beholder. It may have no impact on a Hot Rod, it may have serious impact on a new exotic car.

 

I see a fair amount of collector vehicles on insurance auction sites. They get wrecked too. Same deal as regular cars. Most states have a process to retitle them. In Pennsylvania when you get a street rod title it will have an "R" on it meaning reconstructed as well as street rod branding. Even if it was never wrecked. As to affecting the value of a car, yes on a late model car it will decrease it. More percentage wise on a Mercedes than a Chevy.
I have repaired and sold many rebuilt cars. I never had a customer say the couldn't get insurance on the car. Many needed to get a loan and needed full coverage insurance. The bank was a little fussier with their credit rating on R title cars. The banks will not loan money on the car that has a salvage certificate, once it has been rebuilt and titled they will.

 

Early cars that have been rodded, I wouldn't care too much as it's probably been rebuilt and may perhaps have construction photos of body prior to paint.

If you're buying a late model, I'd be very careful and want to know exactly why it was totaled. Was it simple body panel damage, flood or stolen/stripped? Run Carfax and inspect very carefully.

• Is the car being sold by the owner that incurred the total loss or is it being flipped after being bought at an auction?
• I'd also consider who did the repairs; legit shop/dealer? Jack's used car lot? Julio and his Brother in their driveway?
• Ask for pictures of damage prior to repair.

If you're buying a late model wreck to repair yourself and drive forever, you can do pretty good.

I was looking at a (35k) 2017 pickup that had a light front end impact; core support bumper, fender, hood and one airbag. Seemed like a pretty easy fix to me. It was going to auction as a total.

"Totals" used to be rollovers and accordian waffles. Today, 30k+ vehicles with seemingly very little damage (to car guys like us) get written off and go to auction real quick. The insurance estimates to repair involve sky high new dealer parts costs as well as sky high body/paint labor. Crunched unibody's and Air bags set off are a clincher.

 

In Texas the biggest concern with a "salvage" or "reconstructed" title is that the car cannot be financed. Banks simply won't loan money on a car / motorcycle with anything other than a clean title. No problem with insurance. Late model cars usually command a lower sale price if they have anything other than a clean title.

 

Don't worry Bruce- I thought I was wrong once too, but I was mistaken. [emoji41]


It's bee said here already but -- for H.A.M.B. cars salvage makes no difference. That's what we are about. Drooling over what Sibley resurrected, etc.
For Off Topic cars- yes, it's a price break for sure.

 

In most cases if the car was under warranty that is gone. If it is cheaper to pay out than fix the car is totaled and then receive a salvage title. On older cars having to replace a fender can do it. That's why you need to keep receipts. To an insurance company a 1955 beater and a show car are the same.

 

A good example of late model salvages. Full size chevy work vans, say 30K new, depreciate quickly since theyre used for work and get beat up. So a couple year old van with low miles still "books" pretty low.

If they take a hit in the back, it rumples both side body skins, both rear doors and rear door frame, bumper and all brackets, maybe the roof.

Body shop will estimate replacing almost half the panels on the vehicle at the factory seams and a respray. The van gets salvaged. Just happened to a friend. 6 year old company van, low miles, paid off, got almost nothing for it.

 

I had a salvage title jeep. Bought it from pick-a-part. Got it cheap and drove the piss out it. It was salvaged because it wouldn't pass smog. No damage to it ever.

 

From my experience the vast majority of the work done on vehicles that undergo modifications and/or rebuilding, be they vintage and/or late model, is done by people that are not certified mechanics.
If the vehicle in question is just simply a worn vehicle, then a certified mechanic is not a big deal, however, if the vehicle has been in a wreck, the quality of the work is very important.
A case in point: A friend of mine has a '31 Model A panel truck that has Jag suspension. The type of Jag suspension he used required the cutting and welding of the front spindles. Several years after the car was built he was driving on the highway at 70 mph, a weld failed on the spindle causing the assembly to come off. Fortunately the front end dug into the pavement and the car did not flip.
I think we have all heard/read horror stories of serious accidents where-in a wrecked/savaged vehicle had been repaired by a less than honest garage, and was then the cause of an accident involving fatalities.

 

Depends 100% on your own state laws and the type of vehicle it is. In Louisiana;

Salvaged Vehicle = A motor vehicle which has sustained damages equivalent to seventy-five percent or more of the market value as determined by the most current National Automobile Dealers Association Handbook. A salvaged vehicle must be rebuilt or restored before it can be registered to operate on the highways. A title must be issued with the "reconstructed" brand.

ALSO
*An out-of-state certificate of destruction cannot be accepted for a reconstructed title or any type of title in this state.
*An out-of-state title with the brand of "Bonded Title" or "Bonded Vehicle Title" cannot be accepted for any type of title in this state.
*If the only major component changed on a pickup truck is the cab, the vehicle shall be branded reconstructed utilizing the VIN from the frame. If a salvage title was not issued for the frame vehicle, a permit to dismantle shall be issued.
*No vehicle with a reconstructed title shall be issued a license plate to operate as a motor carrier of passengers or as a public carrier vehicle.

 

I bought a late model GMC pickup with cosmetic storm damage that was classed a salvage by the insurance company. Had to take it to Highway Patrol for inspection before able to license after I made the cosmetic repairs. Only had 9K miles on it so all they checked was various locations of VIN. Insurance company insured it but at 20% less value than one without salvage title. This was in Missouri.

 

Most insurance companies will insure a salvaged vehicle and some will give full coverage. My son had a salvaged car given to him. The insurance coverage was the same for coverage with the same premium. BUT! When my son's car was hit and totaled while parked in front of my house, the insurance company was going to pay full market value until they found out that it was a salvaged vehicle, then the pay off check was cut to just less than half on the spot.

 

I ended up with a 'salvage' title on a OT 'exotic' convertible I bought. The car had been sitting under a tarp for a few years and wasn't running, but was complete. Washington state wanted to charge sales tax and transfer fees based on the blue book value, not what I actually paid for the car. This would have resulted in fee costs exceeding what I paid for the car. After arguing with them, they stated if an appraisal showed a lower value, they would lower the fees. It did, and they did, but a salvage title is what showed up....