In case you’re selling a car (Clear title or not), keep in mind: It’s considered FRAUD if you withhold information about a vehicle’s previous damage, or the fact that it had, at one point, a Salvaged Title. Because of this, states will re-brand the Salvage Titles to Rebuilt Title or Reconstructed Title; to show that a vehicle has been repaired from a Salvaged Title. So, when you’re dealing with a Rebuilt Title or Reconstructed Title, make sure that the seller can demonstrate how the car was repaired.
In some states, the [previously] Salvage Title car will need to go through an inspection with the State Patrol before it is issues a Reconstructed or Rebuilt title. Other states simply require that you show receipts stating that you bought the proper parts and that the car was repaired, and then the DMV will issue a Rebuilt Title brand to the previously Salvaged Title car.
Many Dealerships will not even consider taking your Salvage Title car as a trade-in. However, if you’re lucky enough to find a dealership that will, don’t get your hopes up: Salvage Title Cars are usually appraised at much less than Clear Title Cars.
There are, however, quite a few dealerships that deal strictly in Salvage and Rebuilt Title Cars, and they can save you quite a bit of money
Salvage Title Dealerships Can Be A Great Place To Buy Used Cars
Most of the time, if you’re looking to buy a car from these dealerships, they will either have their own financing available, or you will need to find the financing yourself. The issue: Financing is difficult to get for a Salvaged Title Car. Many banks do not trust Salvaged Title Cars, and (wrongfully, in my opinion) do not believe that the cars are worth what you’re paying for them.
However, if you ever go to a Salvage Title Dealership, the first thing that you will notice is that Most Salvage Title Dealerships will provide you with a Vehicle History Report and Repair Bill to show you that the vehicle has been professionally, and thoroughly repaired, as well as a Vehicle History Report to show you the Title’s History and the types of title brands the vehicle received.
It is absolutely important that before you buy a salvage title car, you know the following:
Understand that a Salvage Title Car is
This is important because just like you don’t eat something without knowing what it is, you shouldn’t bespending money on something before knowing what it is. Consider this: If you have no idea what a Salvage Title is, and you go to sell it, or trade it in at a dealership, you will be un-pleasantly surprised.
Finding Financing For a Salvage Title Car is Difficult
Many banks will not grant you the “usual” financing for a Salvage Title Car… So, if you’re looking to buy a Salvaged (or Rebuilt) Title Car, be prepared to pay a higher percentage on your loan. However, I’ve found that usually, if you offer the bank a 30%-50% down payment, they will finance you.
Have a mechanic inspect the Salvage Title Car
Mechanics, especially well-established ones, know their stuff. Any old mechanic can tell you that a Salvage Title Car was in an accident, but what you want to know is exactly WHERE the damage was, and whether or not it was repaired correctly. Our suggestion is that you find a mechanic that you’re comfortable with, or has a good reputation, and take the Salvage Title Car there for a full inspection.
Make sure that the person selling the car is the person on the Vehicle’s Title
This applies to ALL used cars. Make sure that the person on the title is the one selling you the car. Otherwise, you might lose all of your money AND be an accessory to a car theft.
Get a Vehicle History Report For The Salvage Title Car
Getting a vehicle history Report for a car with a rebuilt title may seem like a waste, right? I mean you already KNOW the car was in a accident; the Salvage Title proves it. Right? Wrong. Salvage Titles may be issued for quite a bit of different “Losses”, and so it’s important to know not only WHEN the Car was branded with a Salvage Title, but also for what reason, different “losses” mean different things, so be prepared! If you’re not ready to spend $50 on a CarFax Vehicle History Report, check out Vehicle-Buyer.com’s list of $10 Vin Checks by clicking here.
The Importance of Understanding “Salvage
Since you’re reading up on Salvage Title Cars, it’s safe to assume that you’re in the market to buy a car. Also, you might be trying to save a couple bucks, since vehicles that aren’t a Clear Title are usually a little “better priced”. However, before jumping the gun and buying a Salvage Title Car, read this article so that you know exactly what you’re getting yourself into. There are several things you absolutely should do before buying a Salvage Title car, they will be listed below, in the section titled Things to Consider When Buying a Salvage Title Car.
Understanding What a Salvaged Title is
In most cases, when a vehicle’s title is branded as a Salvage, Totaled, Reconstructed, or Rebuilt Title, it meansthat the vehicle sustained damages that surpassed 75% of its’ value. However, this isn’t always the case… According to CarFax, the following states use the Salvaged Title brand for any cars that have been identified as Stolen Vehicles:
- New Jersey
- New Mexico
- New York
What does this mean? It means that a vehicle that has been branded with a Salvaged Title may, in fact, have NOT been in any sort of accident. This is one important reason to run a Vehicle History Report on the Vehicle: You might be getting a great deal on a car that hasn’t had any previous damage.
Minnesota DMV Website
In the state of Minnesota, a car that’s valued at $4,000 or below cannot be issued a Salvage Title. This is bad because buyers that are unaware of this might be buying a vehicle that was in a previous accident and not be aware of it. If you’re outside the state of Minnesota, be sure to check the laws of your own states as well, since it’s totally possible that your state might have some similar laws that you do not know about. You can find a listing of your local DMV office and Website on VinCheckReport.com’s DMV Websites page (by clicking here).