Should You Buy a Used Vehicle with a Salvage Title?

If you are a savvy consumer, you may have thought about purchasing a used vehicle with a salvage title. Before doing so, be sure that you understand all of the pros and cons.

What Is a Salvage Title?

A used vehicle earns a salvage title after being damaged, usually in an accident. If the vehicle is considered a loss, the insurance company will compensate the owner and will now be the owner of record for the vehicle. 

Pros and Cons of Purchasing a Used Vehicle With a Salvage Title 

The big advantage of purchasing a used vehicle with a salvage title is cost savings. In some cases, you can get them for pennies on the dollar.

If you are a mechanically inclined person you may be motivated to buy a used vehicle with a salvage title. However, keep in mind that it is not often easy to determine the amount of damage that has occurred. You may be in for a big expensive surprise if you decide to go this route.

Even if you are successful in repairing your salvage titled used vehicle, the fact remains that “once a salvage, always a salvage”. In many states, you will be required to have it inspected and approved by the DMV in order to legally operate it. At this time it will be technically considered a “Rebuilt”, but this doesn’t erase its spotty history. If you wish to sell it at some future time, remember that the selling price will be much lower than for a non-salvage titled car. 

Insurance and Your Used Vehicle

If you think getting car insurance is a hassle, wait until you have a used vehicle with a salvage title. Most companies avoid offering collision or comprehensive policies on salvage titles. If you are in an accident with this car, it will be difficult to distinguish what is new damage and what is the original damage that caused it to earn this reputation. This in combination with the fact that the car has a history of being inoperable is a non-starter for many insurers. Even if you do find a company to issue a policy, it will cost a lot more than a used vehicle without a salvage title. 

Is It Worth It?

If you want a cheap car to tinker around with, a used vehicle with a salvage title might be a good option. However, for pretty much every other consideration in the purchase of a used vehicle, it would be best to stay away from a car with a salvage title.

If you need help selecting the perfect used vehicle for your needs, please come visit us at Thompson Sales, or give us a call at (417) 763-6811. Our knowledgeable and caring staff are here to help you make the best decision in your purchase.