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Salvage/reconstructed titled vehicles

by: lloydbep( 748Feedback score is 500 to 999)
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Guide viewed: 210 times Tags: salvage | reconstructed | totalled | salvage title


Some motor vehicles posted on eBay have "salvage" or "reconstructed" titles as designated by the seller. There are several factors to be considered when purchasing these vehicles. For the novice or largely uninformed buyer, in the USA, states "brand" titles as "salvage" for several reasons. Normally, a salvage title results when an insurance company pays a "total loss settlement" to the owner, takes the vehicle and keys, and gets the owner to sign over the title to the insurer. Next, this title is processed by the insurer into a "salvage title" or "salvage certificate" so the insurer can dispose of the vehicle through one of various "salvage auctions" throughout the country. In the case of a stolen vehicle not recovered within about 30 days, the insurer pays the owner and still gets a salvage title or certificate which the insurer holds until, hopefully, the vehicle is recovered. If eventually recovered, the theft vehicle is processed through a salvage auction even if it is recovered with no, or minor repairable, damage. Salvage vehicles, by the way, generally bring an average of only 10, or perhaps 20, percent of current book value at these salvage auctions. Some will bring more but only in the case of late-model vehicles with no significant damage (such as a recovered "nice" theft vehicle.)

Most "salvage" vehicles  have been "totalled" by an insurance carrier for a significant reason. If a vehicle is not  physically, or economically, repairable it it totalled. Examples are roll-overs, burned-out, T-bone hits, flooded, or entire drivetrain or interior stolen.
Generally, insurers total a vehicle if repair costs exceed 75-percent of the current "book value" of the vehicle and this figure includes cost of a rental to a customer during repair time for a damaged fixable vehicle.

An eBay buyer must consider several factors.  First, even if the vehicle was, for example, a recovered theft that was undamaged, ANY vehicle with a salvage title is not going to be worth what the same vehicle would be worth with a "clear" or clean title. Most dealers nowadays ask about your "trade-in" history and want to know if the title is branded as salvage. If you present the title as "clear" and it is, in fact, branded as salvage, rest assured that your trade-in figure will be adjusted downward and they will look to you to make up the difference.  The difference in value between 'clean' and 'salvage' is huge especially on late-model vehicles. The next factor to be considered by an eBayer is to satisfy yourself as to the extent of the damage even if repaired. Has the vehicle been properly and safely repaired. Some "restored" or "reconstructed/salvaged" vehicles have been well-repaired. Others may have been "clipped" which is NOT recommended. Clipping is taking two 'totals' one hit in the front and the other in the rear. Both chassis are "cut in half" and the good 'clips' are attached to one another to make a whole vehicle. This is a difficult process even for a good body shop and frequently such vehicles have water and air leaks, rusting at the joints where the clips were welded, and potential "dog-tracking" whereby the body/axles, etc. are permanently out of alignment.

Another reality to be aware of is that salvage, totalled, reconstructed, et. al. vehicles have voided factory warranties for obvious reasons. The bargain totalled vehicle may later need expensive work which will not be covered by the manufacturer. This summary is merely food-for-thought for potential bidders on eBay. Happy bidding!

Guide ID: 10000000007141700Guide created: 05/12/08

 
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