In North America, a salvage title is a form of vehicle title branding, which notes that the vehicle has been damaged and/or deemed a total loss by an insurance company that paid a claim on it. The criteria for determining when a salvage title is issued differ considerably by each state, province or territory. In a minority of states and Canadian provinces, regulations require a salvage title for stolen or vandalized vehicles which are not recovered by police within 21 days. In such cases insurance companies declare a vehicle total loss and pay off the previous owner;[1] but, in others, it is issued only for losses due to damage. Under some circumstances, a salvage title denotation may be removed or replaced with a Rebuilt Salvage designation;[2] and cars imported to, or exported from, the United States may be issued a clean title regardless of history.
Because a salvage title can be issued to a vehicle with easily repairable problems or no damage whatsoever, the low cost of the salvaged motorcycle or car is appealing to some hobbyists and investors. Experts recommend caution when purchasing a salvaged vehicle, because there may be hidden damage,[3] which, if unrepairable, may render the vehicle a "pile of parts."[4]
A junk title is a different classification for cars that can only be used for parts or scrap, and are not to be repaired to road-worthy conditions.[5]
^Griffin, Keith. "Understand Used Car Salvage Titles: Salvage Titles Not Always a Bad Proposition If You Act Carefully". About.com: Used Cars. NY Times. Retrieved 9 September 2010.
^Thompson, Marsha (9 March 2006). "The Legal Business of 'Title Washing'". WBLT3. Retrieved 9 September 2010.
^Belli Sr., Melvin M.; Wilkinson, Allen P. (2003). Everybody's Guide to the Law. HarperCollins Publishers Inc. p. 62. ISBN 978-0-06-055433-0. Retrieved 8 September 2010. Serious damage may have been done to the car that has not, nor cannot, be properly repaired.
^Parks, Dennis (2001). How to Build a Hot Rod Model A Ford. MBI Publishing Company. p. 17. ISBN 978-0-7603-0879-0.
^"Junk Title and Salvage Title: What's the Difference?". Dirt Legal. 15 February 2021. Retrieved 30 October 2021.
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