5ReasonsWhyaCarMayBearaSalvageTitle
If you are considering buying a used car in auto auctions online through online car auction sites, you must have come across the term ‘salvage title.’ Are you curious to know about the reasons why a car may bear a salvage title? Here are the top reasons why
Reasons for a Salvage Title
1. CAR IS TOTALED
The term ‘Totaled’ is derived from the insurance term “total loss.” A car becomes totaled when insurance companies determine that the cost of repairing the car damages is more than the actual value of the car. Spending money on the repair of a totaled car is not always justified financially. Hence, the insurance provider declares the car a total loss. In the majority of states, a car is considered totaled when the car’s damage repair costs exceed 70% to 80% of the car’s actual value.
2. DAMAGE FROM A NATURAL DISASTER
Another reason for a salvage title is when the car has been a victim of a natural disaster and suffered damages. The insurance companies may decide that it is more practical to look for a new car than to repair one and therefore insurance companies may omit a thorough checking of such cars in natural disasters in many situations. Many of these automobiles that are retrieved after a natural disaster don’t necessarily have significant damage, but as a safety measure, they are issued a salvage title.
3. BEING STOLEN AND RECOVERED
When a car is stolen and doesn’t get recovered for weeks and months, then the car will be given a salvage title. Those found within the timeline are returned to the owner. When a car is awarded a salvage title for a reason other than damage, the title can be changed to a rebuilt title fairly easily without many repairs, which enables the owner to drive the car legally on public roads.
4. CAR RESTORED IS ANTIQUE OR CLASSIC
A restored classic might have lost its title years ago. There’s a considerable likelihood that the car was restored by replacing significant parts, such as the body, powertrain, or transmission, from various vehicles, even if the original title is still intact. Depending on the legislation governing vintage and restored automobiles in your state, the car can be subject to additional restrictions.
