It needs repairs, and these repairs can cost a lot of money when you factor in parts and labor. Could be difficult to acquire insurance: Not every insurance company will insure a car with a salvage title. If you find a company that will offer you a policy, they may not allow full coverage.
Why are salvage titles worth less?
A car with a salvage title has undergone extensive damage (such as in an accident or flood), which usually means you can buy it for much less than market value. However, while saving money on a used car is appealing, you might want to think twice before buying a car with a salvage title.
Is buying a salvage title car worth it?
According to Kelley Blue Book (KBB), a salvage-title car is typically worth 20% to 40% less than one with a clean title. If you make a claim on a salvage car, you should be prepared for a much lower “total loss” payout than you might expect from a car that’s “clean.”
How much should a rebuilt title affect value?
A vehicle having a rebuilt title will likely have a lower market value because it underwent significant damage. Compared to similar models with clean titles, a car with a rebuilt title could have 20% to 40% less value, amounting to potentially thousands of dollars.