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If you’ve ever
gone car shopping, you might have come across a used car advertisement
that said “salvage title”. You like the price and want to buy
the vehicle but the thing to remember is to let your brain act, not
your heart. After all, there are some things you must consider before
buying a used vehicle with a salvage title.
That doesn’t mean a used vehicle with a salvage title should be
automatically dismissed as a worthwhile option. Only, you need to know
what you’re going to buy before you actually put money down on it.
What
are things you need to know before you purchase a salvage titled
vehicle?
1 – Fully comprehend what the term “salvage title” is.
2 – Obtain a CarFax report.
3 – Have a qualified mechanical inspect the vehicle.
4 – Weigh what your savings are to the potential costs.
Salvage Title: What Is It?
Any time a vehicle has sustained damage that’s worth at least 75
percent of the value, it’s said to be a salvaged car, which is why it
gets a salvage title. For instance: You have a 1998 Toyota Camry that’s
worth $8,690 and it suffers more than $7,000 in damage during an
accident. At the end of the day, it’ll be given a title with the word
“salvage” stamped on it. Basically, it’s no longer fit for the road.
Several states will call it a junk title.
According to the website CarFax, 11 states use the term “salvage
titles” to identify vehicles that have been stolen. They are:
- Oregon
- Arizona
- New Mexico
- Oklahoma
- Minnesota
- Illinois
- Georgia
- Florida
- Maryland
- New York
- New Jersey
Now, each state has their own requirements on what constitutes a
salvage title. For the state of Florida, a vehicle must have 80 percent
worth of its value in damage before being designated as a salvage
title. In the state of Minnesota, vehicles are said to be salvaged when
the insurance company deems them a repairable total loss. They must
also have been worth $5,000 before the accident and not any older than
six years.
A vehicle worth only $4,000 in Minnesota is unable to be deemed
salvage; a very bad thing. It’s buyer beware when purchasing older used
cars from Minnesota and another state with similar legislation. It
tends to favor poorer folks getting these unsafe vehicles.
Arizona’s Motor Vehicle Division sums up the issue of salvaged title in
the following paraphrased statement:
There is some risk involved in the purchase of a refurbished salvage
vehicle. While a good chunk of the parts will be new, some parts will
not be and there are times when even trained mechanics are not able to
predict a vehicle’s life expectancy. And, if you try to sell it later,
you’ll have a difficult time and most dealers won’t take a salvaged
vehicle as a trade-in.
Bear in mind this: it’s illegal, and you’re committing fraud, if you
fail to disclose a vehicle’s previous junk/salvage title to a potential
buyer. That’s the biggest reason why titles will have “resalvaged” or
similar saying to signify a vehicle that’s been fixed up from the
salvage title.
Want to know how to handle resalvaged titles? Be sure you get
documentation from the vehicle owner about what work was done. In the
majority of states, parts and repair work receipts must be submitted in
order to obtain that resalvage title. Your state’s motor
vehicle department will not just hand you a new title based on your
word alone… you need proof!
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