If you are in the market for a new car and you are looking for a great deal you have more than likely come across the term salvage title. You have probably asked yourself what does salvage title mean?
A salvage title means that a title has been issued to a vehicle that has been damaged badly. A salvage title means that a title or document of ownership of a vehicle has been noted as having previously suffered a significant amount of damage. The vehicle is now deemed as being unworthy of fixing. This is the basic definition of what salvage title means.
So now you are probably wondering more about what a salvage title means, like what is the criteria for classifying a car as salvage? When a car is damaged either in an act of vandalism, or in a flood, or in an accident etc. A claim is made to an insurance company.
The insurance company then evaluates the car and then estimates the cost of damage. If the cost of the damages is more than 75% of the cars worth the car is often viewed as totaled.
To further explain what salvage title means in an example imagine your own car . If you were driving and your car was damaged in a collision you would make a claim to an insurance company. The insurance company would evaluate the damages. If the damages total 5,500 dollars and your car is only worth 6,000 your car would then be given a salvage title. That is what a salvage title means to the insurance company.
What does a salvage title mean for the car? The car is not necessarily totaled. It can be repaired. The insurance company could sell your car as salvage. A dealer or investor could buy it, fix it, and the resell it. That is basically what it means salvage title means.
Now you are probably wondering what does a salvage title means for you? Well it means you can buy a used car at price that is significantly cheaper than average market value. A salvage title could mean a great deal to you.