Top 5 Issues With Salvage Title Auto Vehicles
Though the price tag can be a real draw, many car buyers have reported a lot of problems when purchasing a salvage title auto vehicle. Here are some of the top concerns drivers should have about trying to get one of these bargains on the road.
Financing – Lots of lenders are wary of financing a salvage title deal because of the unknowns around the vehicle’s real value. Buyers will often have to pay cash up front.
Different State Requirements – Each state has its own rules and regulations for getting salvage title cars street legal. In some states, a state police officer must inspect the vehicle. First time salvage title buyers can often get blindsided with unfamiliar requirements.
Getting Coverage – Some insurers will refuse to cover a salvage title vehicle or jack up the rates, claiming the vehicle is not “roadworthy” or represents a safety risk.
Claim Situations – If a driver does get insurance for a salvage title vehicle, the insurer will probably not pay out much in the case of a claim. They may contend that because of prior damage, the vehicle is not worth much, regardless of how the vehicle looks or what the actual damage is.
Resale – Those who buy salvage title vehicles are hardly ever going to get easy resale value. Most buyers tend to avoid these vehicles because of the above problems.
These are a few of the most major problems with actually making use of a salvage title deal that looked so good on paper. Do your homework before buying to avoid these dicey situations.
Related Questions and Answers
Are there any Laws Against Getting a Rebuildable Salvage Car for Project Car Purposes?
You must show your DMV that you are getting a rebuildable salvage car for project purposes. In other words, you will have to provide to your DMV that the flood-ravaged 2011 Camaro that was floating upside-down in mud and crud-encrusted water is not having its carpeting and padding ripped out. Or, its upholstery swapped so that the vehicle meets the very minimum of the law to be sold as a “new” vehicle. Remember that if you are building a salvage car, you must show proof that the salvage parts you were supposed to have changed, were actually changed.
Are there any Restrictions to Selling a Used Salvage Car?
There are no restrictions to selling a used salvage car, provided that you clear the reason for the salvage restriction in the first place, and rebuild the salvage title into a standard title. The reason for the salvage title could be as little as a precaution on the part of an insurance company that assumed such because one car on a lot was flooded, all the cars would be flooded. Therefore, it should be totaled and sent into the salvage market. However, there are salvage titles where you must show proof that the damage that led to the salvage marking in the first place has been cleaned and replaced. You must prove this beyond the shadow of a doubt for your DMV and insurance company.