A salvage title (sometimes also sometimes referred to as a “branded title”) are usually a red flag for car shoppers – but can provide an inexpensive car-buying option for budget-conscious shoppers. Here is everything you need to know before you move forward with purchasing a salvage-title vehicle.
What is a salvage title?
When a vehicle has been involved in an accident, and the total value of damages exceeds the value of the car, the insurance company will total the car. This means that economically, it doesn’t make sense to repair the vehicle, and is determined to be a “total loss.” Depending on the state, the motor vehicle agency will issue a “salvage certificate” to the car, which means that it cannot be driven, registered, or sold in its current condition.
At this point, the insurance company usually sells the car to a parts dismantler or repair facility. If a repair facility repairs the vehicle for resale, it must first pass an inspection, at which point the motor vehicle agency will issue a “branded” or “salvaged” title to the vehicle.
When is it ok to purchase a salvage-titled car?
If you want to save big bucks, purchasing a salvage-titled car might be the way to do it – but make sure you know what you’re getting yourself into, first. Always have the vehicle inspected, ask for the original repair estimate, and only consider purchasing a salvage-titled vehicle from a trustworthy repairer. Make the extra effort to research the shop, and know the complete history of the car you’re buying.
If you don’t mind some risk in return for a cheap price tag, a salvage-title vehicle might be an option for you. Just be prepared that you may face unexpected issues down the road, and plan to set aside extra funds for those repairs.
Here at Union Park BMW, we always recommend that car shoppers thoughtfully consider the pros and cons of each car purchase. If peace-of-mind is more important to you than a cheap car, stop by our showroom and checkout our exciting lineup of reliable luxury vehicles!