What Is a Salvage Title?
If you have ever been going through the ads for a used car, you may have run across a car with a “salvage title”. It may have an attractive price, but before you buy, you need to know what a salvage title means. A salvage title means that the car has been reported to the state as damaged, and it has been “totaled out” by the insurance company. It means that the cost to repair the vehicle is more than its value. It may have been damaged in an accident, have had flood damage, or reported as stolen.
How Do I Check the Title of a Salvage Vehicle?
The Vehicle Identification Number (VIN) is located on the driver’s side dash on the interior of the car. To determine of the vehicle has been stolen, go to the National Insurance Crime Bureau’s website and enter the number.
You can also obtain a report on the vehicle that is obtained from insurance companies on the vehicle. The report will tell you if the car has been written off, regarded as salvage or stolen and unrecovered.
Can I License and Drive a Salvaged Vehicle?
The laws regarding salvaged vehicles vary from state to state, so it is important to check with your local Department of Motor Vehicles before using such a vehicle. It is also important to know that even if you buy the vehicle completely restored or restore it yourself, it will still have a salvage title that will affect the resale value in the future. After doing all the necessary repairs, the vehicle will have to be inspected to make sure is it safe to drive. If it passes the inspection, it will be issued a new title of “Restored Salvage”. Thus all future prospective buyers will be made aware that the vehicle was restored after it was severely damaged.
How Does a Salvage Title Affect the Cost of the Vehicle?
You can expect, on average, that a completely refurbished automobile will cost about 40% less than the same vehicle with a clean title. Knowing this, it would be important to have your mechanic check to see if there are any expensive repairs needed that will offset the savings you are receiving by purchasing a salvaged vehicle.
Power Tags offers vehicle title services at both of our locations. Contact Power Tags for your next motor vehicle service!
Queen Creek Location: (480) 677-3132
Florence Location: (480) 788-6014