Should I Buy A Car with A Salvage Title?

Car with A Salvage Title – What Is It?

Cars with salvage titles are vehicles that have been damaged and/or deemed total losses by the insurance companies that cover them.

Things to take note of regarding salvage cars:

  • To be considered a salvage car, the vehicle must be damaged to the point where repairs would cost more than the value of the car.
  • Salvage doesn’t only apply to collision: a car could also be considered salvaged if it endured damage from hail, fire, flood damage, or stolen.

Should I Buy A Car with A Salvage Title?

Salvage cars are relatively cheap, sometimes selling for pennies on the dollar. You may get a good deal when you only need an inexpensive run-out-to-the-home-store type of car and don’t have tons of cash in hand.

But you still need to be cautious. Have an independent mechanic check the car. Ensure the guts (engine, breaks, etc) are still intact and check Carfax for car history.

In addition, keep in mind that a car with a salvage title is expensive to finance and insurance will be higher.

If you need car insurance quotes to compare, or more insurance related information, please go to 

About Dale Williams

Dale Q. Williams, MBA, is a well-respected financial executive whose experience spans from insurance to investment banking. Dale has first hand underwriting experience through working for one of the largest U.S. based insurance carriers, and advisory experience from working for several bulge-bracket and middle-market investment banks. Dale also received his MBA from University of Chicago Booth School of Business, with concentrations in finance and accounting.