Salvage title
A branded title for a vehicle written off as too damaged, or otherwise lost, to be worth repairing. Each state sets its own threshold.
Full guide: Salvage title: what it means and what you can do with one
A salvage title is a branded title issued when a vehicle has been damaged, stolen or otherwise written off beyond a threshold the state sets, often when repairs would cost more than a set share of its value. Insurers usually trigger it when they declare a total loss. A salvage-titled car generally cannot be registered or driven until it is repaired, inspected and retitled as rebuilt.
If you are selling a damaged car, the brand lowers what retail buyers will pay, but junkyards, rebuilders and salvage auctions buy salvage vehicles routinely. The exact damage threshold and paperwork vary by state.
Texas describes a salvage motor vehicle as one damaged to the extent that the cost of repair, including materials and labor, was more than the vehicle was worth before the damage, and notes that insurance companies usually make this determination. The NMVTIS brand definitions on the same page describe the salvage threshold as a jurisdiction-defined percentage of the vehicle’s retail value.1
References
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Texas Department of Motor Vehicles, “Salvage Vehicles”, https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/title-check-look-before-you-buy/salvage-brands ↩
Related terms
Guides that mention salvage title
- Bill of sale for a junk car
- Car titles explained: types, transfers and problems
- Certificate of destruction and nonrepairable certificates
- How much is my junk car worth?
- How to sell a car after an accident
- How to sell a fire-damaged car
- How to sell a flood-damaged car
- How to sell a totaled car
- NMVTIS junk and salvage reporting: who reports, what and when
- Rebuilt title: what it is and how to get one
- Salvage title: what it means and what you can do with one
- What is a branded title?