Salvage title.

In plain English

A salvage title is a status your state stamps on a car's title after an insurance company decides the vehicle is a total loss, usually because the cost to repair it is close to or above what the car is worth. The damage can come from a crash, flood, fire, or theft recovery. A salvage-titled car cannot legally be driven until it is repaired, re-inspected, and re-titled (often as a rebuilt or reconstructed title). The exact rules and the damage threshold that triggers a salvage brand vary by state, so check your state DMV or motor vehicle agency for the specific rule where you live.

01Why it matters

A salvage or rebuilt title slashes a car's resale value and can make it hard to insure or finance, so buying one cheap can cost you later.

02The math, step by step

Say a used car takes heavy crash damage. The insurer calculates that repairs would exceed the damage threshold your state uses to call a vehicle a total loss, so it declares the car totaled and it gets a salvage title. A buyer later rebuilds it, passes a state inspection, and applies for a rebuilt title before it can legally be driven again. (Damage thresholds and re-titling steps differ by state.)

03What this is NOT

04Receipts

Every figure on this page is sourced to a primary document. Tap to open the original.