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Definitive information about auto titles.

In most states, Alabama included, a reconstructed salvage title is not much more than a warning that at one time, a car's damage exceeded a certain percentage of the damage to a car.

On a 2003 Volvo S80, that wouldn't be a very good sign. If someone can't distinguish between $25,000 of damage, and $1300 of damage, you should be glad you don't have to deal with them anyway. A 12 year old car that just got issued a salvage title, might have had the bumper covers scratched, and needed new headlights, signals, and that's about it -- if that. People get hysterical over title history, when it is virtually meaningless in many cases. The whole thing hinges on at what point in a car's history, the branded title was issued. When you hear recommendations about old Volvos and salvage titles, it is by and large (on this board) from someone who is not informed about titles and title history. Most people have limited access to, or understanding of, the title branding process. A one year old car with salvage title may have had some big damage. However, even HAIL damage can total a new vehicle, and said vehicle is certainly not the victim of an accident.

A five or six year old car with a reconstructed title, might have had very minor damage. A lot of these are run & drive anyway, but the general public is only informed by the likes of CARFAX, which declares everything but a perfect vehicle, to be useless.

Because of the mass hysteria that title brands are causing in the used car marketplace, some states and insurance companies have altered their criteria for title branding. In the state of Wisconsin, for example, almost all cars five years old, or older, automatically get either a junk title, or a clean title. A junk title means the vehicle can NOT be driven anywhere legally, ever. A clear title means, a clear title. That is what CARFAX has brought to the marketplace -- a rebound in the way that titles are cleared. Now, many of the vehicles that were inappropriately issued salvage titles because of damage (such as the vehicle in this case, almost) are joining the ranks of clear titled vehicles that have accident records all over the place, but don't have title brand history. The only distinction is in newer vehicles, and that is only to protect buyers from unknown damage on newly repaired vehicles.

Also frequently confused, are "Salvage" and "Junk" titles. Salvage means "rebuildable", and Junk means "no title", "bill of sale only", "parts", or "export".

The titles:

Salvage
Reconstructed or Rebuilt Salvage

Are not the same thing. Salvage means the vehicle is able to be retitled after inspection. The inspection generally consists of general safety items, repairs, and one has to provide a detailed list of parts. Also photos in some states.

A vehicle with a Reconstructed or Rebuilt salvage title, means that the vehicle was inspected and determined to be roadworthy. A salvage vehicle with hail damage, would have to be inspected for safety, although it is possible that no work whatsoever would have to be done to bring the car up to roadworthy standards.

Since I've been involved with vehicles like this for a long time (selling, repairing, driving, auction, etc) I'm well aware of the distinctions between titles. Most of the hysteria surrounding such titles on older vehicles, is urban legend. One has to avoid vehicles that were banged together by a backyard hack, but these are usually easy to spot. One put together by the proper facility, is often as good as any other car. Many of them pull top dollar.

When it comes to selling the car, some people might shy away, but some people don't consider that to be a problem, if the vehicle is otherwise in good condition.

One of my cars, was a car that was brought into the shop I was working at, with side damage. It was in excellent condition, super low miles, and it got whacked in the driver's door, sucked in the side of the car a little bit... the usual. Must have been a weird accident because the front left quarter was damaged too. Didn't break the windshield, rad OK, lights cracked. Driver's door had to be replaced, rear door was repaired, front quarter was untouched. Car was on the drive-throughs at the IAA sale in Wheeling (Chicago North), as I remember. Anyway, the car got put back together and put out for sale. Some guy sent it up to his mechanic (another respected shop that does a lot of work in Volvo products) and they never mentioned anything about previous accident damage... but they did give the car a clean write-up, and recommended that he purchase it. He also sent up an 850, which came back with a good bill of health. He bought the 850 instead of the 940, and I bought the 940. I can say that it brings a lot of compliments. Rebuilt title. Someone will definitely buy it, if even on looks alone. The thing is almost perfect. And mechanically excellent, of course.

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New damaged blue 740. Assessor's results. And more opinons sought.
posted by  Lawrence  on Sat Sep 27 07:29 CST 2003 >


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