What does 'salvage title' indicate regarding a vehicle?

A 'salvage title' indicates that a vehicle has been involved in an incident, often a serious accident or natural disaster, leading the insurance company or owner to declare the vehicle a total loss. When this happens, the cost of repairs exceeds a significant percentage of the vehicle's value, making it uneconomical to repair. As a result, the vehicle is typically issued a salvage title to inform potential buyers and future owners of its history and condition.

This title does not imply that the vehicle is in excellent condition or that it is brand new, as it fundamentally reflects a significant loss in value due to its declared status. Additionally, a salvage title does not assure potential buyers that the vehicle has no prior accidents, as it is specifically granted due to a previous damaging incident. Overall, the designation of a salvage title serves as a crucial warning regarding the vehicle's history and its potential risks.