Salvage title
From Wikipedia, the free encyclopedia
A salvage title is an automobile title with a notation that the vehicle has been damaged in excess of approximately 75% of its previous market value. This notation gets applied to a title when an insurance company pays a total-loss claim on a vehicle, but then allows the owner to retain or buy back the vehicle at its post-damage market value, which is often negligibly low. Often a vehicle is still safely driveable even if technically considered a total loss by an insurance company, particularly with older vehicles where even minor cosmetic damage would cost more to fix than the vehicle's whole market value.
A junk title is a similar notation to a salvage title, but generally indicates that the vehicle is not roadworthy.
A rebuilt vehicle is a salvage vehicle that has been repaired and restored to operation. These vehicles are often severely damaged before they are rebuilt and refurbished parts are typically used during reconstruction. In most states, an inspection of the vehicle is required before the vehicle is allowed to return to the road.
In the United States, Carfax is the most well-known company that sells title reports to prospective car buyers which, among other things, reveals these title statuses to potential buyers. According to Carfax's web site, a salvage title may also be used to indicate that a vehicle was stolen in the following US states: Arizona, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oklahoma, and Oregon.
[edit] References
1. CarFax Glossary
