I've got a friend looking for a new car and there's one that's on the radar. It's got damage to the rear pass quarter panel so we're going to take a look and see how bad it really is. The description says that the car has a "damage disclosed title." What does that mean? And is that similar to/the same as a salvage title? Thanks, Matthew
If it does, what does a salvage title actually mean. I know what it means, but what does it affect? Insurance, etc...?
Salvage title means it was damaged in excess of 70% of the car's value. IIRC, some lenders won't give you a loan for it.
Also, there's a good chance you won't be able to get insurance beyond liability for it. Like no collision or comprehensive.
Not true. They might ask to see what the previous damage was, but in most cases they don't. You'd be surprised how easily lightly damaged cars get totaled by insurance these days. Even if the damage is light, insurance companies don't want the liability if it's not fixed correctly, so they just total it. Salvage title cars are a real bargain if the damage wasn't bad and it was fixed correctly. I'd be more wary of a modified car put together by a kid in his driveway than a previous salvage put together by a professional.
By FAR the biggest problem with salvage titles is when YOU want to sell it. Most people won't look twice at a salvage titled car, so they can be nearly impossible to sell. I've seen beautiful, near new, less than 10k mile, salvage cars sit forever without a buyer: dirt dirt cheap cars, no buyer. If you want to make an absolute comitment to the car and drive it until you are willing to take it to the salvage yard, or give it away, fine. Otherwise stay away.
I agree with LASERBLUE135, unless you plan on owning it for the life of the car, I'd stay away, I used to own a salvaged title 2001 Impreza RS. Ran strong, good car, clean. That's about it, I lost all passion to even modify the car just because I knew it was a salvage car. Selling it? not going to happen in this market, I ended up just giving it away to my parents. As for Insurance, Most companies will give you coverage, even full coverage if you want to. I remember right, Esurance was the only company that won't give me insurance. I had full coverage from State farm (not cheap at all), Progressive, 21st Century/AIG, and... well... I think I was only with those three guys. Anyways, best of luck.
