What is a "salvage title"?

A salvage title is a specific designation for a vehicle that has been declared a total loss by an insurance company. This typically occurs when the cost to repair the vehicle is considered higher than its actual cash value after an accident, theft, or other damage. When a car has a salvage title, it indicates that the vehicle has a history of significant damage and may not be safe to drive without thorough inspection and repairs.

This type of title is crucial for potential buyers because it informs them that the vehicle has a compromised history and may come with various risks. It's important for salespersons to communicate this information transparently, as it significantly impacts the vehicle's value and the buyer's decision-making process. Understanding what a salvage title is can help buyers make informed choices about purchasing vehicles with such designations.