Understanding Salvage Titles: What They Mean for Your Car's Value

If your car has a salvage title, you might wonder how it affects the value when selling. Here's what you need to know about salvage titles and junk car sales.

What Is a Salvage Title?

A salvage title is issued when an insurance company declares a vehicle a total loss, typically because repair costs exceed 75-90% of the car's pre-accident value. This happens after major accidents, flood damage, fire damage, or theft recovery.

How Salvage Titles Affect Value

A salvage title significantly reduces a car's value – typically 20-40% less than a similar car with a clean title. For a private sale, this is a major drawback. However, when selling to a junkyard, the impact is less severe because they're primarily interested in parts and scrap value.

Selling a Salvage Car to a Junkyard

Junkyards regularly buy salvage title vehicles. The title status doesn't matter as much because they're not reselling the car as a whole. They'll evaluate based on:

• Usable parts that can be resold
• Total weight of recyclable metal
• Make and model demand for parts
• Current scrap metal prices

Required Documentation

You'll still need the salvage title to sell the car legally. Some states require additional forms or signatures when transferring salvage titles. Check with your local DMV for specific requirements.

Rebuilt vs. Salvage Titles

If a salvage car is repaired and passes inspection, it can receive a "rebuilt" title. Rebuilt title cars are worth more than salvage but still less than clean title vehicles. If you've invested in repairs to get a rebuilt title, you might get more money from a private buyer than a junkyard.

Bottom line: Don't let a salvage title discourage you from selling. Many junkyards actively seek salvage vehicles and will make fair offers based on parts and metal value.