Salvage Title

A salvage title is issued when an insurance company declares a vehicle a total loss, meaning the cost to repair it exceeds a state-defined threshold: typically 75 to 90 percent of its actual cash value. The vehicle cannot be legally driven on public roads until it is repaired and re-titled as rebuilt.

Salvage vehicles are commonly sold at salvage auctions to rebuilders, parts dealers, and export buyers. Licensed dealers who work with salvage units must understand state-specific regulations around disclosure, registration, and the rebuild-and-inspection process required to convert a salvage title to a rebuilt title.