WalletHub, Financial Company
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.
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