Is it worth buying a car with a salvage title?

Question

The downsides of a salvage title are that it's harder to find insurance and repairs could be costly if you want to get the car road-legal again. A salvage title means the vehicle was declared a total loss by an insurance company as a result of damage that would cost more than the vehicle’s value to repair.... read full answer

Why Salvage Titles Are Bad

Vehicles with salvage titles usually cannot be financed.

Most insurers will only offer minimum coverage for salvage-titled cars.

Repairs can take a long time and be expensive to complete before a salvage-titled vehicle is safe to drive.

A salvage-titled car requires a full inspection by a certified mechanic and a new title before being legal to drive.

Vehicles with salvage titles are worth 20% to 40% less than comparable used cars with clean titles.

Positives of Salvage Titles

Not everything about a salvage title is bad. In fact, salvage titles are a useful tool for both consumers and DMVs to understand a vehicle’s past. Additionally, because salvage-titled cars are worth less than their clean-titled counterparts, they are very cheap to buy at auctions or even from some used car dealers. Plus, once the vehicle is repaired and inspected, it is issued a rebuilt title and can be driven legally in most states.

To learn more, check out WalletHub’s guide to salvage-title vehicles.

show less

Answer 1 · 2023-02-15 23:48:57

see this user

WalletHub, Financial Company

@WalletHub • 02/15/23 This answer was first published on 10/19/21 and it was last updated on 02/15/23.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

No, it is not worth buying a car with a salvage title because cars with salvage titles can be difficult to insure and are generally not eligible to be financed. A car that has a salvage title has previously been declared a total loss, so it may also require costly repairs before you can drive legally.

Before a salvage-title car can be legally driven, it must be repaired fully and inspected by a certified mechanic. They will review the insurance adjuster’s appraisal report to understand what the original damage was and ensure that all repairs have been done in full. Then, a new title must be issued – a rebuilt title, signifying that the vehicle is safe to drive.

What to Know About Buying a Car with a Salvage Title

Cars with salvage titles tend to be very cheap to buy.
Salvage vehicles can be bought at auctions or from certain used car dealers.
It is unlikely you’ll be able to finance a salvage-titled vehicle.
Insurance companies are hesitant to insure salvage-title cars.
If the vehicle has a rebuilt title, it has been repaired and can be driven legally in most states.

To learn more, check out WalletHub’s guide to salvage-title vehicles.

Is it worth buying a car with a salvage title?

WalletHub, Financial Company

What to Know About Buying a Car with a Salvage Title

Find Cheap Car Insurance

People also ask

Are salvage title cars more expensive to insure?

What is bad about a salvage title?

Can a salvage title be cleared?

Join WalletHub