About how much does a salvage title change value?

For a forever car it is a non issue, what about something you won't necessarily keep forever?

As an example:

https://tampa.craigslist.org/pnl/cto/d/belleair-beach-mazda-miata-grand-tour/7522647572.html

That's a great question and very highly dependent on the owner. As much as I always like to think I'll keep cars forever- that is very rarely the case. I've steered away from some great cars because of this. 
my question is: shouldn't this now have a rebuilt title in order to drive? I thought salvage was a sort of placeholder until you did the proper things to make it qualify for rebuild title. What is preventing the current t owner from moving to this step? 

I paid about $6k less for my R since it has a salvage title.

Depends on the car. 50-70% less than normal value in the insurance world.

I don't see why a car can't get a rebuilt title. Apparently we don't have rebuilt titles in SC.  I see fairly new Toyota trucks for sale here with salvage titles listed for $30+ stating the damage was only minor.  I say BS.  

The older a car, the easier  it is to overlook. 2017 with a salvage title? No. 1957 Chevy with a salvage title? Who cares?

It's not about you or your car.

The insurance lobby took care of that.

The bean counters really got their knickers in a wad when they had to pay out a Total$ on the same VIN 2wice!

But really the whole Salvage deal is borked, as perfectly safe vehicles (which should be the only concern of the legal system), are branded.

It fits into others interests as well, as it makes a new purchase more inviting/convenient.

grover said:

That's a great question and very highly dependent on the owner. As much as I always like to think I'll keep cars forever- that is very rarely the case. I've steered away from some great cars because of this. 
my question is: shouldn't this now have a rebuilt title in order to drive? I thought salvage was a sort of placeholder until you did the proper things to make it qualify for rebuild title. What is preventing the current t owner from moving to this step? 

From a quick google, it requires an inspection from Florida Highway and Motor Vehicles.  Over the past couple years that might have been hard to set up.  Combine that with the fact that he might be wanting to get rid of it for a while?  Plausible explanation, but may not be the actual answer.  He might have just not known about it.

In reply to Mr_Asa :

I would look into it further. They might also want documentation on the parts used for the repairs. That could make it a lot tougher to change from savage to rebuilt. 

I'd also look into whether you can register and insure it if the title really is salvage and not rebuilt. The owner at the time of the repair might be able to get away with renewing the registration, but once sold the branding may prevent a new registration from being issued and prompt the attempt a quick sale by the current owner to unload a vehicle he can't register (and make it someone else's problem).

Salvage title to me would only be worth it if the car were half the price of the same car in the same condition with a clean one. I wouldn't mind one for a track car.

50-60%

"It's salvage because <insert bullE36 M3 here> "

I don't believe any car is really a forever car. They're almost always going to get sold at some point. Worth thinking about IMO is the decreased audience when you do go to sell. I'll never buy a salvage titled car, at least so far I've held to that. Its a giant PITA to get rid of since there's tons of others like me that'll just click the back button as soon as they see the title status. I'd think this is worse for something like a Miata, as why bother with a salvage title when prices are low enough on NCs either way?

It's great that the seller of the example car says it's a simple repair, but unless he can prove it reasonably well AND I trust myself enough to be able to spot repaired frame damage and whatnot, there's no way I'd consider it. Just not worth the hassle IMO.

I can't speak for other places, but I know in GA salvage means it can never be returned to the road. It can't ever be registered. Parts only. 
 

50%. 

SV reX said:

I can't speak for other places, but I know in GA salvage means it can never be returned to the road. It can't ever be registered. Parts only. 
 

50%. 

I'm not a GA expert, but I do know quite a bit about titling around salvage units. Technically NO salvage unit can be returned to the road. Once they're "repaired" and inspected by the state, then the state can issue a rebuilt title which can be driven on the road. Shadey sellers often use the term "reconditioned title" to try and distance themselves from the stigma of a salvage car

Patrick said:

"It's salvage because <insert bullE36 M3 here> "

 

Maybe as little as being confiscated at the border

I've noticed that many people use salvage and rebuilt as interchangeable. In the few states I've been unlucky enough to have to tag vehicles in, a salvage title means non operable on roads. A salvage title can sometimes be transferred to a rebuilt. AL requires a "licensed " shop to do all the repairs, and get the inspection done. Seldom worth the cost. People do cheat that. 

Generally, salvage title is a way of branding a title in an effort to make sure it never returns to the road. It's used by insurance companies when they have paid to total a vehicle, trying to make sure they never have to buy the same car again. 
 

The trick to rebuilding a salvage title is that the owner of the title has to be the one to try to rebuild it (and there are often requirements to use a licensed rebuilder). Since insurance companies are the owners of most salvage title cars, it's absolutely not in their best interest to ever transfer title to anyone else, nor to rebuild it. As long as they remain the owner of record to the title matching a VIN, don't expect them to begin rebuilding it.

Its not hard to get your hands on a car with a salvage title. It is very hard however to ever get the title officially put in your name. Therefore, it's not getting rebuilt. 

As mentioned above, a car goes from Salvage (non-drivable, non-registrable for license plates, in most states) to then Rebuilt or Rebuilt Salvage after the car passes state inspection.  This Rebuilt designation then makes the car valid to get registered for license plates and driven on the road. 

My guess is that this seller has wrongly stated the car as Salvage when the reality is that the car is Rebuilt Salvage since he states he has been driving the car.  Verify to be sure.  

To financially total a car is mostly a mathematical, financial decision by the insurance company.  Like mentioned above, if the repair bill estimate is within 50-70% of the cars value, the insurance company may decide to total the car rather than fix the car.  

For me, personally, my #1 Prius, I bought it with 78k miles for nearly $7k.  I was the third owner.  I did not realize it at the time of buying but after I bought it it became evident that the front bumper cover, hood, a headlight and front fender had been replaced.  It seemed these were replaced in the first owners timeframe and when the car had less than 45k miles and was likely less than 4 years old.  For argument sake, lets say this was $5k worth of damage but the car was worth $20k at that time.  Net result, the insurance company fixed the car and the car retained a clean title.  

Years later, I bought my #2 Prius.  This car at 110k miles got in an accident and required the similar: (front bumper cover,  headlight, fender, door.) Similar $5k damage.  But when the accident happened the car was 9 years old and 110k miles making the car worth more in the range of $7k so the insurance company totaled the car.  (Pre-covid world)  
I bought that car from a body shop who specialized in rebuilding Prius and Camry.  They were very open about before and after damage.  Ironically, more open about it than my first Prius purchase where I learned of this similar damage after buying the car from the uninformed second owner.

So, every car that is totaled has it's own story.  You'll want to know as much of that story as possible.  And, you'll want to verify as much of that story as possible.  

Of course, in the crazy post covid world some very new cars have been totaled for minor damage because totaling the car was cheaper than supplying an overpriced rental car while waiting an undetermined time for an unavailable part to become available.  

To answer the direct question of how much does it affect value, I would agree with 25 - 40% price reduction, lets average to 33%.  So, on a car with a $30k value for a "clean title "car that 33% is about $10k off comparable.  But if it is a $5k car value for a "clean title" that only about $1,500 savings or a $3,500 retail.    

More importantly, be very weary of a car that was deemed "totaled" when the car was very valuable.  To total out a high value car usually means high value damage!  Since just about any trip to a body shop is $3k, it is very easy to total out a car worth $5k that just needed a fender and bumper cover.  

Mr_Asa said:

For a forever car it is a non issue, what about something you won't necessarily keep forever?

As an example:

https://tampa.craigslist.org/pnl/cto/d/belleair-beach-mazda-miata-grand-tour/7522647572.html

As a Mazda, this Miata will have vin tags on every body panel from the factory.  Sellers says one fender and one headlight were replaced.  If that happened recently like just before covid, it is possible this totaled the car since car values were low.  I would just verify the presence of vin tags.  Its price of $9k seems reasonable for the condition (in this new unreasonable car market.)    

In reply to John Welsh :

I'm not sure I can agree with you regarding VIN location. 
 

I can't speak for the 2006, but I know a 2000 NB has the VIN stamped on the firewall and 2 stickers on the B posts, and THATS IT. There are no other VIN locations, including no VIN tag on the dash at the base of the windshield.

YMMV

Mr_Asa said:

For a forever car it is a non issue, what about something you won't necessarily keep forever?

As an example:

https://tampa.craigslist.org/pnl/cto/d/belleair-beach-mazda-miata-grand-tour/7522647572.html

That's a good looking car. I'm assuming it's already sold. 

In reply to SV reX :

Interesting.  1990 has vin tag on every panel. Yes, I made assumption that practice continued.  

Short of walking outside and taking pictures in the dark,  here are Miata vin tag samples. Small white sticker with vin nu,ber verifies these are original fenders 

Same sticker resides near door latch to represent door and another near strikes plate to represent rear quarter.  Another on trunk and one on hood.  Bumper covers have them too but on inside 

In reply to SV reX :

On the NB they are inside the fender. You have to open the door and look through there, might need a mirror. 

Not sure on the NCs. 

SV reX said:

Generally, salvage title is a way of branding a title in an effort to make sure it never returns to the road. It's used by insurance companies when they have paid to total a vehicle, trying to make sure they never have to buy the same car again. 
 

The trick to rebuilding a salvage title is that the owner of the title has to be the one to try to rebuild it (and there are often requirements to use a licensed rebuilder). Since insurance companies are the owners of most salvage title cars, it's absolutely not in their best interest to ever transfer title to anyone else, nor to rebuild it. As long as they remain the owner of record to the title matching a VIN, don't expect them to begin rebuilding it.

Its not hard to get your hands on a car with a salvage title. It is very hard however to ever get the title officially put in your name. Therefore, it's not getting rebuilt. 

Most people think this is the case, but it isn't.  Branding a title is not insurance driven, it's government driven at the state level.  It's their way of trying to ensure a car that was potentially severely damaged and unsafe isn't returned to the road without being made "safe".  Hence the requirements of many states that a car go through a detailed inspection prior to being put back on the road.  Some states don't allow that at all, and some states don't give a E36 M3 (I believe in TN any car over 10 years...maybe 15???...doesn't need to get a salvage title).  From an insurance company perspective, having to buy a car a second time is the very least of our concerns.  

You are correct, typically the insurance company initially winds up being the owner of a salvage car.  That's where a company like Copart comes in.  They sell those cars on behalf of the insurance company.  The title is turned over to the salvage buyer at that point.  Insurance companies don't retain any ownership.  In fact, one of the goals of a carrier is to get that car sold and title transferred to the new owner ASAP.  If a customer elects to retain the cars' salvage from the start, the title is flipped into a certificate of salvage (or similar).  Depending on state laws, that is sent to the owner who will need to follow any state guidelines to get a rebuilt title.  The insurance company isn't involved at all from that point forward.

A car can be totaled for a variety of reasons.  Most common is crash damage.  It can also be unrecovered theft that is then found down the road, fire, flood, animal damage, blown engine, etc...  These days, I sometimes total cars with collision damage that's only 30% of the value of the car.  That's due to part shortages and labor shortages at shops.  The 986 Boxster I own now is an example of such a car.  What they are worth on the private market is up to the consumer.  Typically it's 60-75% in my experience, but that is a truly YMMV.  Some are higher, some are lower.