A salvage title designates a vehicle that an insurance company has declared a total loss due to collision damage, flooding, fire, or other incidents. The cost of repairs typically exceeds the vehicle’s pre-damage value. For instance, a relatively new car with significant flood damage might be deemed a total loss even if superficially repairable, due to potential long-term issues. This designation significantly impacts a vehicle’s market value.
Understanding the valuation of these vehicles is crucial for both buyers and sellers. A salvage title represents a considerable discount compared to a clean title, offering potential cost savings for buyers willing to undertake repairs or utilize the vehicle for parts. Historically, access to this information required specialized resources. However, online valuation tools and databases now provide greater transparency, enabling more informed decisions. This accessibility democratizes the process, benefiting individual buyers and smaller salvage yards.
