Most people look for cars that are in good condition and roadworthy when they shop. You may have heard the term “salvage car” and wondered if dealerships could legally sell these cars. Dealerships are allowed to sell salvage vehicles, but there are rules, disclosures and considerations that must be taken into account.
If you are considering buying a salvage vehicle, you can make an informed choice if you know what it is, how it got its title and what you should look out for.
What is a Salvage Car?
Salvage cars are vehicles that have been declared total losses by the insurance company. It usually happens when a vehicle has suffered significant damage due to an accident, fire, flood, theft, or any other event that makes the cost of repairs exceed the market value.
The state motor vehicle department will mark the title of the car as “salvage”, once it has been deemed to be a total loss. The car’s title is branded as “salvage” by the state motor vehicle department, even if the car has been repaired and put back on the road.
Can Dealerships sell them?
Dealerships are allowed to sell salvage vehicles, but must adhere to strict legal requirements. These include:
- Full Disclosure – The dealer must inform the buyer that there is a salvage title on the vehicle. This information is usually required to be written before the sale in most cases.
- Proper documentation – To avoid any confusion, the title should state “salvage”.
- State Laws: Each state has different laws about who is allowed to sell salvage vehicles, and under what circumstances. Some states require that the vehicle pass a safety inspection before it can be sold to the general public.
Dealers who are reputable will follow the rules to avoid fines, license loss, and legal action.
Why Dealerships Sell Salvage Cars
Dealerships sell salvage vehicles because they can do so at a lower price than comparable cars with clean titles. It can be attractive to budget-conscious buyers, who aren’t concerned about the salvage designation.
Some salvage cars may be in better shape than expected. A car may receive a salvage title if it has minor cosmetic damage, or was exposed to a flood that did not affect the engine or structural integrity. The vehicle may still be functional and safe after repairs.
What buyers should consider
You should carefully weigh the pros and con of buying a salvage vehicle from a dealer.
Pros:
- Clean-title vehicles are cheaper to purchase than cars with clean titles
- If repairs are performed correctly, you can get a vehicle that is reliable.
- It may be a good option for those who need a second vehicle or a specialty vehicle
Cons:
- Lower resale value due to salvage branding
- Possible hidden damage not visible during inspection
- Some insurers will only cover liability for salvaged cars.
How to protect yourself as a buyer
Follow these steps if you want to salvage a car:
- Get a Vehicle History Report – This will tell you when and why your car was given a salvage title.
- An independent inspection can help identify any problems that may have been caused by the initial damage.
- Understanding Insurance Options – Contact your insurance provider to confirm the coverage available before purchasing.
- Ask for documentation of repairs – A reputable seller should be able show you receipts, part lists, and inspections results
Final Thoughts
Dealerships are allowed to sell salvage vehicles, but must comply with all state laws and disclose the condition of each vehicle. These vehicles offer buyers the chance to save money, but only if they are approached with caution. Understanding the history of the vehicle, getting an inspection by a professional, and verifying insurance coverage are all essential steps. Salvage cars can be an affordable option with the right preparation. However, they are not for everyone.
This post was written by a professional at Redemption Auto Sales. Used Car Lots In Largo FL is a trusted used car dealership located at 11001 Seminole Blvd in Largo, FL. Serving Pinellas County, they offer a wide selection of quality used cars, trucks, SUVs, and vans. As a certified Carfax dealer, every vehicle comes with a detailed history report. They provide flexible financing, accept trade-ins, and are committed to a hassle-free, no-haggle buying experience. Visit 200autos.com or call (727) 200-2468 to learn more.
