The cons of a salvage title

by Lisa Baker

• The price is wrong.

You must be very confident that you can repair a salvage car for a relatively low price, or you can afford to spend a lot of time and money on expensive repairs, before you buy it. Sometimes the damage can be extensive but not easily detected. Unless you are an expert, make sure it is closely checked and signed by a trusted mechanic before you buy.

• A save is forever .

Once a vehicle is added and marked as salvage, that mark remains on the title forever. That is true even if you return the car to running condition. In most states, once you recover a salvage vehicle to function safely, you must have it inspected and approved by the DMV in order to legally operate it on the road. Your title will be renamed “rebuilt,” but everyone will know that his car was once a salvage vehicle. And while it’s better than having a salvage title, having a rebuilt title means a significantly lower selling price if you decide to sell the car later, regardless of the time, effort, and money you put into it.

• Insurance will be a big hassle.

Many insurance companies are wary of writing extensive or collision policies on rebuilt vehicles that were previously salvageable. The main reason is that if you get into an accident, the insurer may have a difficult time determining whether the damage is due to the new accident or the one that had the salvage of the vehicle make in the first place. Also, your vehicle was once judged to be unfit to drive on the road, so the changes you underwent break down again or break down and cause a serious accident, are much higher than those of a normal vehicle.

Some insurers have decided not to try and will simply not write a policy. Those DPs are likely to load up an arm and a leg. So, if you are considering fixing a salvage title car, find an insurance company before investing your money.

If you already have a vehicle and this would be your second or third place, talk to a reputable insurance provider, it may be easier to talk to the insurance agent you already know and trust.

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