Understanding Salvage Titles: What They Mean and How to Approach Them

When buying a used car, you'll often come across the term ‘salvage title.’ A salvage title, also known as a rebuilt or fixed title, indicates that a car has been severely damaged and then repaired to some extent. This can be a concerning issue for many potential buyers, and it's important to understand what it means for the car's history and your future.

What is a Salvage Title?

A salvage title means that the car was wrecked, totaled, flooded, or damaged by fire, and then 'fixed.' The frame of the car may have been bent or broken, and the car was repaired to make it drivable again. This process can be a significant red flag, as the car may not have fully regained its original condition, especially when you consider that bending a paperclip back to its original position rarely returns it to its true starting point.

Types of Salvage Titles in California

In California, a salvage title doesn't always mean a car was completely totaled in an accident. Instead, it indicates that the car was damaged to the extent that it was deemed non-repairable to the previous owner. A good example is a car I recently purchased from a junkyard—a 2001 Saab 9-5 Aero wagon. The car had engine damage but no body damage, and it did not appear to have been in a major accident, as you can tell from a careful inspection under the car.

Despite being advertised as 'blown head gasket,' the engine was badly overheated and no longer viable. Since the car was deemed salvageable and went to a junkyard, it will receive a salvage title. Similarly, an older car that is only worth $5,000 might get a salvage title for a minor accident that one could easily repair, but only with a significant amount of work done by the buyer themselves.

Late Model Cars and Salvage Titles

For late model cars, a salvage title typically means that the car was in a significant wreck or was flooded. If you're considering a late model car with a salvage title, it's highly probable that the vehicle experienced severe damage.

Rebuilding and Salvage Titles

For instance, my son owns a 1999 Saab 9-5 sedan that we rebuilt the engine about two years ago. He wrecked the car to such an extent that both airbags deployed, and the front end damage would have been costly to repair. Consequently, we purchased a wagon with a bad engine, removed the old engine, installed the engine from his sedan, and now it's running again. We'll need to go through the process of getting it re-titled, and it will bear the 'salvage' marking.

Checking the Cause of Salvage Damage

It's crucial to research the cause of the salvage title if you find one on a car you're considering purchasing. Sometimes the damage might be from water or flood damage, which can be particularly concerning. Flood damage can take years to manifest, causing various electrical issues and other problems that may not be immediately apparent.

What to Look for:

Check the car's previous accidents and repairs. Inspect the car for unusual wear and tear or unexpected repairs. Ask the seller about the specific details of the damage and repairs.

By understanding the meaning of a salvage title and the steps involved in researching a car's history, you can make a more informed decision when purchasing a used car.

Conclusion

Saving money on a used car can be tempting, but it's important to consider the potential hidden costs and liabilities associated with a salvage title. By being vigilant and thorough in your research, you can avoid purchasing a car with significant hidden issues, ensuring you make a wise and informed decision.