Are salvage titles bad? Choosing a car with a salvage title can be dangerous if the car hasn't been properly repaired or rebuilt. States typically require a “rebuilt title” and inspection if the car has been repaired to ensure that it's roadworthy again. But your safety could still be at risk.
A vehicle with a salvage title is one that's been declared a total loss, and you can't drive it on public roads. Therefore, you can't purchase insurance for one. However, once you refurbish the salvage car and it qualifies for a rebuilt title, it can be insured, registered, driven, and sold.
Repairs may cost you too much in the long run – Even the best salvage vehicles may have underlying mechanical issues that were not fixed – or may only become obvious after several months of driving. Repairs and fixes may end up costing you all of the savings you had from buying a salvage vehicle – or even more.
According to Kelley Blue Book (KBB), a salvage-title car is typically worth 20% to 40% less than one with a clean title. If you make a claim on a salvage car, you should be prepared for a much lower "total loss" payout than you might expect from a car that's "clean." The second reason is safety.
You can't remove a salvage title from a car, but it can be rebranded as rebuilt after undergoing repairs and passing a state inspection. A car receives a salvage title after it suffers damages that exceed 75% of its total value.
Documentation necessary to register a salvage vehicle differs from state to state, but proof of ownership, the certificate of salvage and the certification that the vehicle has passed the salvage inspection are common requirements.
A salvage title cannot be legally driven and usually isn't in any condition to drive even if it could be, which means that by buying one you're signing up for a significant investment of time, money, and administrative tasks required to repair it and get it inspected to have its title restored.
Generally, to be eligible for a rebuilt title a car must first be assigned a salvage title. Salvage titles are assigned when the cost of repairing a vehicle becomes more than what the insurance company is willing pay.
While some vehicles are able to be salvaged, other vehicles may be branded with a title that says things such as "only for parts." These vehicles cannot be driven on South Carolina, or most other states', roads.
Alright, so a vehicle bearing a salvage title is wrecked and illegal, or most likely, impossible to drive—while a branded title simply notes a vehicle has been subject to damage. Our specialists carefully purchase and professionally restore branded title vehicles.
When you go to the DMV office, have a completed Form S-2, which certifies that the vehicle was rebuilt. You also have to have your title, an Application for Title and Registration, and the Salvage Vehicle Inspection Report. You can turn in the paperwork and pay the titling fees.
In South Carolina, when a vehicle is severely damaged and declared a total loss by an insurance company, the vehicle's title must be submitted to the state Department of Motor Vehicles for an appropriate salvage brand. Once a salvage brand has been added to a title, it can never be removed.
In South Carolina, a salvage title is issued on a car when the cost of fixing the vehicle is 75% more than the value of the car. When this happens, the insurance company tells the DMV that the damage has met the 75% mark, and the DMV issues a salvage title for the car.
You will need to have the original title certificate, the bill of sale for the vehicle, and the title fees to get the salvage title. If the vehicle that's being salvaged is six years old or less, you need to have the License & Theft Bureau conduct an antitheft inspection before you can get the title.
Unless the damage is particularly extensive, a salvaged vehicle may be restored back to being roadworthy again. A salvaged vehicle that has been restored and rebuilt to fit legal road standards will be given a “rebuilt salvage” title. A rebuilt salvage will also receive a new certificate from North Carolina DMV.
Cars that carry a salvage title cannot be driven on public roadways. The only way to replace the salvage title with a rebuilt title is to completely repair the vehicle and have it pass several examinations.