Different Titles to Know About When Buying Salvage Vehicles When you are new to purchasing salvage vehicles and searching online for the cars at various salvage auto auction houses, you can become confused with all the information available. There are many different categories under which the cars can be searched. Among all these options, you can search for salvage vehicles using the type of title the car carries. When you purchase new or salvage vehicles, it is registered at the DMV with a title. It's a legal document which contains a list of information like the VIN(vehicle identification number), make and model, market price when vehicle was new, information of the registered owner, and name of lien holder if vehicle is being financed etc. Paying attention to the title of the vehicle is important as it helps to determine the price of the salvage vehicles and the value of insurance coverage available. Let’s have a look at some of the most common categories of titles for salvage vehicles.
Clean car title A car which is brand new, safe to drive, and for which you can get full value of insurance gets a clean title by the DMV. A used car can also get a clean title if it has not incurred any major damage from flood, theft or big accidents and the insurance company has not done a major payout on it for repairs.
Salvage car title A vehicle is given salvage title by the DMV when it has gone through considerable damage at some point and the insurance company has declared the car a “total loss” which means that the car's repairs will be 75% of or above the car’s pre-damaged market value. Salvage vehicles can’t be driven on the road and can’t be insured or financed without being rebuilt. The reasons for a car to be salvaged can be flood damage, hail damage, car accident damage, vandalism, theft, bank repossession, etc.
Rebuilt car title If a salvage vehicle has repairs done to it, all the functions are restored and rebuilt by the seller and the car passes strict inspection under the state jurisdiction, then its salvage title can be changed to “rebuilt.” But you have to be very careful when buying such vehicles as different states have different rules and laws for giving a vehicle a rebuilt title.
Non repairable title If a salvage vehicle has a non repairable title, it means the vehicle cannot be safely driven on the road and can only be used for its parts. These cars are great if you are looking for a specific part of a vintage or classic car which is out of production, if you have a luxury car and the parts are expensive or if you need spare parts for your custom car projects.
Final Word Now that you know all the different titles for used cars it might help you in making a better decision when purchasing salvage vehicles with regards to their bid value, and the insurance and financing you can get. If you are in the NJ area and are interested in buying salvage vehicles, look for the leading state auto auction house online that provides free access to VIN numbers and car history reports. Look for state auto auction sites in NJ that also provide previews and third party inspections services so that you can get a trusted mechanic to inspect the car and buy it at a great deal.