What Is a Salvage Title?
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What Does Salvage Title Mean?
How Salvage Titles Work
Are Cars With Salvage Titles Damaged?
Pros of Salvage Title Cars
A low price tag. These cars will typically sell for prices far below similar cars with clean titles, which is part of understanding the value of a car with salvage title. The damage may not be that bad. You could get lucky and find a car with a salvage title that has minimal damage or just cosmetic damage. Or, you might find an older car that was considered a loss by the insurer simply because it had a low market value, not because the repairs were all that costly. It may be worth buying for parts. With the high cost of auto parts, it might be worth buying a car with a salvage title to get parts for another car you own and/or parts to sell.
Cons of Salvage Title Cars
It may be more damaged than it looks. Some damage may not be immediately apparent. The seller must disclose that the vehicle has a salvage title, but it’s up to the buyer to determine the exact extent of the damage. If you're thinking about buying a salvage or rebuilt title vehicle, it can be a good idea to have it checked out by a mechanic you trust to help spot any potential issues before getting the title signed over to you. Repairs could be costly. There’s a reason why the car got a salvage title. It needs repairs, and these repairs could cost a lot of money when you factor in parts and labor. Also, if the car has a salvage title, it’s no longer legal to drive on the road. To regain legal status, the car must pass an inspection approved by the state once it’s repaired. It may be difficult to get insurance. Not every insurance company will insure a car with a salvage or rebuilt title. If you find one that will, they may offer a liability-only plan that won’t cover the damage to your car if you get in a collision.
Determining if Your Car Has a Salvage Title
Can You Refinance Salvage Title Cars?
3 Auto Loan Refinance Tips
Refinancing your auto loan could lead to lower monthly car payments and more money in your budget. Lantern by SoFi can help you find the right car refi loan for you. Shortening the term of your auto loan may increase your monthly payments, but you’ll likely pay less in interest over the life of the loan. You may have trouble refinancing the loan on a car that is worth less than what you owe. For more info, check out When Is the Right Time to Refinance a Car?
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