Q:

How is car value affected by salvage title?

A:

Quick Answer

A car with a salvage title can have its Blue Book value reduced by 20 to 40 percent. There are instances where the resale value of a salvage title vehicle is less than 30 or even 20 percent of the initial value of the vehicle.

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Full Answer

Depending on the location and the condition of the vehicle, resale value can plummet to 70 and even 95 percent.

The reason for a salvage title greatly reducing the value of a vehicle is because it may have damage that makes it irreparable or financially difficult to repair. Some of these vehicles don't have any damage at all, but a salvage title prevents the vehicle from being driven on public roads and getting registered.

In order for a vehicle to be driven on the road, it must be inspected and proven to be safe to operate regularly, which is a complex process that can take an extended amount of time.

A salvage title gives the vehicle a reduction in value, but there are vehicles with such a title that are completely operational. A salvage title can be given out to vehicles in varying conditions, and it is recommended that individual vehicles are appraised to ascertain their true value.

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