Total Loss Vehicle

A total loss vehicle is one an insurer has determined would cost more to repair than its ACV. The insurer pays the owner ACV, takes possession, and the title is branded as salvage or total loss. The vehicle then typically moves through a salvage auction.

Dealers encounter total loss vehicles in trade-in appraisals, insurance replacement deals, and wholesale acquisition. Knowing how to evaluate ACV accurately, identify total loss history through vehicle history reports, and handle the associated title and disclosure requirements is essential for managing these transactions correctly.