How Is Car Value Affected by Salvage Title?

How Is Car Value Affected by Salvage Title?

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.

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.