What does a salvage title mean at resale time?

It means the car was wrecked, or flooded, so badly that it was sold for salvage. The cost of repair was 80% of the value of the car. The car was then bought by someone and repaired. Thus the salvage title. Run from this vehicle as fast as you can.

ANSWER

At resale time a salvage/reconstructed vehicle will net 60% of the value of a comparable car with a clean title. Cars are totaled when repairs top 75% of its real market value. An older salvage car can be a fine purchase since they are worth less and it doesn't take much to total them (even a little side swipe will total an otherwise fine car and it will drive fine). Avoid flood damaged cars as they can have a lifetime of quirky electrical problems.

Don't believe the scaredy cats that say RUN from a salvage car--if the salvage/reconstructed car is in good condition and passes a pre-purchase inspection it can be a great deal.

First answer by Clay. Last edit by Tobeginwith. Contributor trust: 31 [recommend contributor]. Question popularity: 11 [recommend question]