Californians are no strangers to car accidents. According to the SWITRS-2020-Report, California witnessed 143,476 injury crashes while 3,672 fatal crashes. Chances are you have also been in a fender bender, if not a more severe car crash, at some point.
When you get into an accident, the insurance company will pay to fix your car. But, what happens when fixing your car costs more than it is worth? That’s when you are likely to hear the term salvaged title. Understanding what this title means is crucial when buying or selling a car.
Let’s learn more about a salvaged title.
What Does a Salvaged Title Mean?
A salvaged title is a certificate that deems a vehicle severely damaged or a total loss. Usually, road crashes, floods, thefts, or other incidents can lead to severe damage. The insurance company will deem your vehicle a total loss when the cost of repairing the damage exceeds the vehicle's actual cash value (ACV). The insurance company will brand your vehicle as salvaged. At this point, the California Department of Motor Vehicles (DMV) will also consider it salvage.
Can You Buy a Vehicle with Salvaged Title?
The short answer is YES!
When the insurance company deems a vehicle salvaged, it pays the owner its pre-accident value. After that, the insurance company owns the said vehicle. Typically, it will end up in a salvage yard.
The salvage yard may auction it off to a dealer. The dealer might use it for parts or resale. It is not illegal to resale a vehicle with a salvaged title. However, under the California lemon law, owning such a vehicle comes with many risks.
1. Risks for Buyers
- For buyers, this is a safety risk. A vehicle with a salvaged title may have underlying mechanical or safety issues that might not be immediately apparent. It can compromise your safety on the road.
- Secondly, you cannot get an auto loan for a vehicle with a salvaged title. You might have to take out a personal loan, which often carries prohibitively high-interest rates.
- Vehicles with a salvage title often get a negligible payout when involved in a road crash. Why would the insurance company pay for something already deemed a total loss?
2. Risks for Sellers
- Sellers need to maintain complete transparency when selling such vehicles. Failing to disclose this information can result in legal disputes under the California lemon law.
- Also, salvaged vehicles often have little resale value. As a result, people are less likely to invest in such vehicles.
What Should You Consider When Buying a Salvaged Vehicle in California
Buying a salvaged vehicle is often cheaper. They often cost less than new or even pre-used vehicles. If you are short on cash, it’s an excellent option. However, be very careful when going through with this deal. Here’s what you need to do.
1. Inspect Thoroughly
First, inspect the vehicle thoroughly. That means checking the frame and undercarriage for any structural damage. You can look for visible damage like misaligned body panels, uneven gaps, or rust. If needed, hire a professional mechanic for a thorough evaluation.
2. Check the Vehicle History Report
You can request a vehicle history report using the vehicle identification number (VIN). It provides valuable information about the vehicle’s past. You can learn about its accident, flood damage, and salvage history. Never buy a used or salvaged car without checking this report.
3. Consider the Required Repairs
The vehicle still might need repairs. Repairs will add to your overall cost. Consider the labor, cost of parts, and other expenses before buying it. If it’s out of your budget, you might have to think of another option.
California Lemon Law and Salvaged Titles
California lemon law protects consumers who purchase or lease defective vehicles, including those with salvaged titles. If you have bought a defective vehicle with a salvaged title, you may get a refund, replacement, or cash compensation.
However, claims involving salvaged vehicles are often complex. The insurance companies and dealers may argue that the vehicle’s history contributed to the defects. They may outright reject your claim. It happens more often than you think.
You are better off hiring a competent lemon law attorney in California. A skilled lawyer can help you understand the legal merit of your case. They will advise on the necessary legal steps if you have a valid claim.
The Bottom Line
A salvaged title means the vehicle is severely damaged or deemed a total loss. These vehicles typically end up in a salvage yard. However, some might be up for resale. If you are buying a salvaged vehicle, inspect it thoroughly and consider its history and potential repairs. Still, if you end up with a defective salvaged vehicle, talk to a lemon law attorney in California. They will study your case and see if you have a claim.
About the Author: Brian K. Cline’s Lemon Law Legal Group provides premier legal services. Our California lemon law lawyers aggressively and ethically force vehicle manufacturers to buy back defective and dangerous vehicles. Our team includes experienced trial lawyers with over 40 years of combined trial experience.
