Salvage Titles…Good Deal?
SALVAGE AND FLOOD TITLES
We get quite a few questions on salvage titles, so I thought some basic information might be helpful…
You’ll need to be especially wary of buying vehicles that have salvage or flood titles. While the prices on these vehicles may be enticing, the problems you might encounter after purchasing such a vehicle are not.
SALVAGE TITLE is usually given to a vehicle after it has received extensive damage due to a collision, vandalism, or a weather-related condition, and would cost more to repair than its market value.
A flood title is given, as the name implies, to a vehicle that has been severely damaged by a flood, or some other water-related situation.
REBUILT SALVAGE TITLE is issued to a vehicle that has been reconstructed or repaired enough that is it drivable. Be aware, though, that states have varying requirements for this type of title. Just because a vehicle has a rebuilt title does not mean that it’s completely safe to drive or that it won’t fall apart a block from where you bought it.
There are countless potential problems waiting in the wings for a SALVAGE OR REBUILT-SALVAGE-TITLED VEHICLE. The problems are connected with whatever caused the salvage title to be issued. If you’re willing to take the risk of buying a cheaper vehicle, knowing that expensive repair or safety issues may be lurking, or if you’re skilled at vehicle repairs, it might be worthwhile. If not, you’ll probably be better served buying another vehicle.
FLOOD-DAMAGED VEHICLES present their own unique set of problems, including possible electrical, computer, and wiring-system damage. This could also have an effect on airbag deployment and antilock brake performance. And, there are always the headaches of rust or mold.
TITLE BRANDS
A title brand is printed on the title as an informational message for the current and subsequent owners.
| Bonded | B | Kit Vehicle | K | Street Rod | D |
| Flood Damage | F | Original | O | Unrecovered Theft | U |
| Non USA (foreign) | N | Salvage | S | Recovered Theft | Y |
| Title Rebuilt | C | Total Loss | T | Reconstructed | X |
| Custom Vehicle | A | Rebuilt Salvage | R | Special Constructed | E |
DECODING A MONTANA TITLE
http://www.doj.mt.gov/driving/forms/manuals/decodingvehicletitleregistration.pdf
Insure a Car with a Salvage Title?
It can be difficult. Cars with salvage titles generally have had serious defects – structural and mechanical. Might not be reliable and could be unsafe, which an insurance company would consider a risk. Don’t assume that your policy will cover a car with a salvaged title. Ask your carrier before assuming anything.
Regulations on salvage titles vary from state to state, so check with your local department of motor vehicles to learn how salvage titles can affect you.
MONTANA CODE ANNOTATED
Motor Vehicle Recycling and Disposal
http://data.opi.state.mt.us/bills/mca_toc/75_10_5.htm
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