Salvage Title Vehicles

[dutchman]

Just thinking out loud here... I welcome your opinions.

Any of you guys have experience with a salvage titled vehicle? I've found vehicle that fits the criteria my wife has given for our next vehicle, the hang-up is that it's a salvage title. I've got a dealership VIN report (thanks TurboMinivan) and it says no accidents reported, no fire/flood damage, no theft. It does say that there is a fleet/rental/lease record, duplicate title records, then the usual emission/safety records and loan/lien records. The price is right on the vehicle and I'm considering taking a look at it (haven't seen it in person yet) and having it looked over by a shop. Would you guys consider a salvage title if everything checks out?

Another thing, does the fact that it's a salvage title make it harder to get financing?

 

[Greg]

I wouldn't touch it... find something that has some actual value. Most banks won't loan on a salvaged title, but I understand some credit unions do.

The one salvaged title vehicle I had, I got for CHEAP, it was a temporary vehicle and when I was done with it I parted it out and took the rolling chassis to the wrecking yard... it wouldn't sell otherwise.

If you ever decide to sell it, it won't be easy and IMO you won't get much out of it.

 

[Hickey]

Some banks/credit unions will only loan half value on a branded title, and some insurance companies will only pay half value, should you end up in a total loss situation.

 

[TRD270]

My '96 4runner was a salvage title (flood) never had issues with it. I bought it with only 71k miles on it, and sold it with 150k Paid $9000 when the same 4runner with no salvage title and way more miles were selling for 15k+. I think this is a case by case basis, I never had any issues that I could attribute to the flood, even the interior wasn't bad at all, only a few spots where you could see staining from it.

Also America First will loan on salvage titles

 

[dutchman]

My '96 4runner was a salvage title (flood) never had issues with it. I bought it with only 71k miles on it, and sold it with 150k Paid $9000 when the same 4runner with no salvage title and way more miles were selling for 15k+. I think this is a case by case basis, I never had any issues that I could attribute to the flood, even the interior wasn't bad at all, only a few spots where you could see staining from it.

Also America First will loan on salvage titles

Yeah, I figured it would be one of those case by case things. I've heard stories like yours and then I've heard horror stories. Too bad there isn't a way to be 100% sure if would be a good vehicle or not. The people listing it for sale say they haven't had any problems with it (kind of figured they'd say that) and they bought it with the salvage title. The asking price is about 7k lower than a clean title vehicle w/ many more miles. I've got a nice personal debate going on in my head...

 

[TurboMinivan]

Another thing, does the fact that it's a salvage title make it harder to get financing?

As others have said, this will vary from lender to lender. Some won't touch it; others may lend part of its otherwise normal value.

As added information, I plugged this VIN into my Chrysler account. They know it was salvaged, because the entire vehicle is on restriction (meaning Chrysler no longer honors any warranty coverage on it at all). Normally this wouldn't matter much on an '05, but I mention it so you aren't blinded by the low miles. (Since the truck was salvaged back in 2008, it is possible that there are repairs which were ignored or even performed poorly/incorrectly due to this. Be cautious.)

 

[dutchman]

As others have said, this will vary from lender to lender. Some won't touch it; others may lend part of its otherwise normal value.

As added information, I plugged this VIN into my Chrysler account. They know it was salvaged, because the entire vehicle is on restriction (meaning Chrysler no longer honors any warranty coverage on it at all). Normally this wouldn't matter much on an '05, but I mention it so you aren't blinded by the low miles. (Since the truck was salvaged back in 2008, it is possible that there are repairs which were ignored or even performed poorly/incorrectly due to this. Be cautious.)

Good info, will keep that in mind. Thanks.

 

[blznnp]

Another thing is will your insurance company insure it? I know when I had state farm they told me they would not insure a salvage title.

 

[brandonlmb]

My insurance company will not insure salvage titled vehicles. I'm not sure as why though.

 

[Cascadia]

I have had several salvage titles. Never a problem with any of them. They all sold within a month, except for my LJ cause it had too many mods. America first will loan 100% and my insurance company never had any problem insuring them. Hi have saved lots of money on each purchase and made money on each sale. It wouldn't stop me but I'd do my research.

 

[bryson]

I have had several salvage titles. Never a problem with any of them. They all sold within a month, except for my LJ cause it had too many mods. America first will loan 100% and my insurance company never had any problem insuring them. Hi have saved lots of money on each purchase and made money on each sale. It wouldn't stop me but I'd do my research.

This is similar to my experiences... I currently own a rebuilt/restored titled vehicle that I bought as a salvage title. I did the work to repair it, and would do it again. It is silly how much money you can save this way.

On a side note, I think vehicles are being totaled with less damage these days than they used to be... I guess the insurance companies have figured out that they can spend less/make more by salvaging it and reselling it than by paying to repair it. Of course, this also means you can pick up salvage title vehicles with less damage than you could 5 years ago...

 

[dutchman]

Another thing is will your insurance company insure it? I know when I had state farm they told me they would not insure a salvage title.

My insurance company will not insure salvage titled vehicles. I'm not sure as why though.

Called my insurance to ask and they have no problem. The lady did say that an issue might appear in a total loss situation.

Does anyone know of a good shop in the northern Utah County area? One that they would trust to do a thorough inspection to see if any problems exist, especially the frame.

 

[dutchman]

On a side note, I think vehicles are being totaled with less damage these days than they used to be... I guess the insurance companies have figured out that they can spend less/make more by salvaging it and reselling it than by paying to repair it. Of course, this also means you can pick up salvage title vehicles with less damage than you could 5 years ago...

I think this is a good point. I wonder if there are an statistics to back this up.

 

[Hickey]

Each insurance companies have their own formulas for what totals a vehicle. A damaged wiring harness can be very expensive. Some cars total simply because of the amount of labor required.

 

[TRD270]

Another thing is will your insurance company insure it? I know when I had state farm they told me they would not insure a salvage title.

Not sure whats wrong with your agent, I have state farm and had no problem insuring mine

 

[broncomitch]

I just got a fully loaded 05 explorer with super low miles for cheap with a rebuilt/repaired title.
I got it from the body shop that bought it from the insurance company and fixed it.

The title was a negative but he did a grate job fixing it with no frame damage and got it dirt cheap...tho I did half to change ALL the fluids and brakes pads and a lot of detailing.

Got a loan from our bank and full coverage with our insurance with no issues.


If the price is right and it's been fixed correctly I see no problem.
I have had some real death traps with clean titles lol

 

[TurboMinivan]

Does anyone know of a good shop in the northern Utah County area? One that they would trust to do a thorough inspection to see if any problems exist, especially the frame.

Our favorite local body shop is Cascade Collision just over the border in Lehi. Of the local body shops we deal with on a routine basis, they tend to do the best work. As a result, this is the first place I'd go for any bodywork concerns.

 

[dutchman]

Our favorite local body shop is Cascade Collision just over the border in Lehi. Of the local body shops we deal with on a routine basis, they tend to do the best work. As a result, this is the first place I'd go for any bodywork concerns.

Would they have the ability to inspect the frame? I'm guessing they do, but I don't know.

 

[JL Rockies]

Why would an insurance company have a problem? They get to charge you then don't have to pay out as much in an accident.

 

[Hickey]

Would they have the ability to inspect the frame? I'm guessing they do, but I don't know.

They should have no problem with that.