Salvage Title Trucks: What You Need to Know Before Buying One

 If you have been in the market for an inexpensive truck, there is a likelihood you have viewed adverts for salvage title trucks. Even though they are often cheaper than clean title trucks, purchasing one has its own risks and potential troubles. A salvage title is defined as a vehicle record showing that the vehicle has been severely damaged by a wrecking, flooding, fire, or other incident and had been totaled by an insurance company. A salvage title truck can be purchased very cheaply, but know the following things if you consider purchasing one:

What is a salvage title truck? More importantly, what are the benefits and drawbacks in buying this kind of truck? How can you evaluate a salvage title truck? And how can you make sure you get a really good deal?

What is a Salvage Title Truck?

An insurance company will issue a salvage title on a vehicle if it determines that the vehicle is too badly damaged to be salvaged for the majority of its actual cash value once it has been severely damaged in an accident, flooded, stolen, or suffered a fire. In essence, the insurance company determines that the cost of repairs exceeds a particular percentage of the actual cash value of the vehicle and therefore decides to 'write off' the vehicle.

With trucks, this could range anywhere from major body damage of the truck (such as frame or structural damage) to a full-fledged failure of an engine or drivetrain. A vehicle with a salvage title is not allowed to be taken on the road until it's restored and passes an inspection over roadworthiness. In a few states, a salvage title may be replaced by a rebuilt title when the extent of repair work is completed and the vehicle is declared roadworthy.

How Do Salvage Titles Occur on Trucks?

Salvage titles are earned by trucks due to many causes. These include:

• Accidents: Extensive damage from a collision might be too expensive to repair. Even though technically operational, the insurance companies may deem the truck to be completely written off.
• Flood Damage: Underwater trucks may be a consequence of flood or water damage, and because most electrical systems within the truck will be damaged massively, including the motor and transmission, it will likely receive a salvage title.
• Fire Damage: Fire damage, even though it may have been doused in a time span shorter than a minute, will surely cause structural and electrical damage that will render a truck immovable to give it another life.
• Vandalism: In some cases, there will be vehicles that have been partly vandalized or those stripped for parts which will have a salvage title assigned to them.
• Theft Recovery: When a truck that was written off by the insurance company is recovered, it may receive a salvage title especially when it is significantly damaged.

What Is Salvage Title Truck And The Pros Of Buying It?

Though this has its negative side, there are plenty of reasons why an owner would find a salvage title truck extremely interesting to acquire:

1. Lower Purchase Price

The greatest benefit of purchasing a salvage title truck is the cost of purchase. Generally, salvage title vehicles are sold at a much lower price than a regular clean title. This in some ways makes buying a salvage title truck an attractive sale for those that have limited budgets and would love a project vehicle, or possibly a truck they will fix up to drive.

2. Potential for a Good Bargain with Improvements

If you have tools, skills, and resources or are dealing with a trusted mechanic, it is likely to be much cheaper to do the repair than it would be at any dealership. If cosmetic or minor, you can take it back to good condition and hope to make a sizeable profit or enjoy a reliable vehicle at a fraction of the cost of a comparable clean title truck.

3. Chances for Personalization or Renovation

There are buyers who want to be able to purchase a salvage title truck so that they can restore it back to its former glory or, at a minimum, just use it as a base to restore the vehicle. An example would be a rusted body where the salvaged title truck is a good candidate for a custom build and the reduced price allows you to modify it as needed.

4. Availability of Parts

Since salvage title trucks come from mainstream manufacturers (Ford, Chevrolet, Toyota, etc.), parts are normally readily available and sometimes cheap. This is especially so when you're fixing it yourself.

5. Savings in Insurance (If It Is Rebuilt and Insured)

In some cases, a salvage title truck can be repaired and pass a state inspection in order to obtain a rebuilt title, which might then actually be insurable. In some instances, insuring a rebuilt truck can be less expensive compared to a clean title vehicle, depending on your insurance company and the state wherein you reside; this is, however, not always the case.

The Disadvantages of Purchasing a Salvage Title Truck

Although there are advantages to buying salvage title trucks, there are many drawbacks and risks to consider:

1. Extensive Damage

A truck with a salvage title typically indicates that a lot of damage had already been done to the car. Though it can be fixed, the crucial frames and suspensions or other elements can continue to cause problems in their own structures.

Sometimes, the issue is too extensive; it cannot be cost-effective to pay for fixing it, but more so a threat in the long run to safety. Salvage title trucks tend to sell for a lot less than clean title vehicles. Selling the truck later when you decide to upgrade or realize you need something else entirely may set you back on the price. Even if the truck has been repaired, you will have difficulty recovering your money. Most of the people who want to buy a salvage title vehicle are hesitant due to the history and condition of the vehicle.

2. Limited Warranty or Financing Options

Many salvage title trucks do not have a warranty, and you will most likely face major problems when trying to obtain financing from a traditional lender due to the fact that they perceive the salvage vehicle as being too high-risk, often. Even if you find a way to finance the salvage title truck, you will probably be paying more interest than for a clean title vehicle.

3. Challenges to Get Insurance

Insurance companies will more likely provide less detail coverage for a salvage title truck and may not even provide full coverage, but only liability insurance. Even if you are able to get full coverage, the amount of premiums you have to pay will be higher compared to a vehicle with a clean title. Moreover, some states require special inspection processes to be carried out on the salvage title vehicle before it is driven legally again, which, of course, takes time and costs.

4. Hidden Damage

Often the damage to a truck may not surface right away. Though the body or frame may appear perfectly fixed, the underground problems, especially in complex systems such as electrical or transmission, might not reveal themselves right away. If the repairs were not done correctly, you may end up facing pricey problems later.

How to Evaluate a Salvage Title Truck

If you really want to get a salvage title truck, then you have to dig up a lot of research and homework. So here's what you should do and how you can assess that salvage title truck:

1. Look at the Vehicle History Report

Get a vehicle history report on the truck using its VIN—even before physically examining the truck. These will give you such information as the truck's history on accidents, previous owners, mileage, and major incidents the truck might have been involved in, like flooding or fire cases.

2. Evaluate the Vehicle Topology

It's always best to have a professional mechanic inspect the vehicle before making a purchase. This is where you check for signs of damage on the frame, suspension, and engine. It may look fine on the outside, but the inner components could still be in bad shape.

3. Verify Repairs

If the truck was repaired, demand documentary evidence showing how severe the damage was and how the truck was restored. One should also find out if the work was professionally done and if original parts were used. Those bad repairs will continue to give trouble and keep exposing one to danger.

4. Title Condition

In addition, make sure the truck was titled correctly as salvage and, if permitted, that it has met any required inspection procedures to obtain a rebuilt title. A salvage title truck, even branded as "clean," cannot be driven on the highway legally until it meets inspection, and hence must ensure all legal requirements have been met.

5. Be Aware of State Laws

Salvage title rules vary from state to state. There are some states that will let you obtain a rebuilt title after the truck has been worked on and others can be pretty strict. It is of utmost importance to understand what the local laws are about salvage title cars so that it does not hinder you from getting the truck registered or insured.

How to Locate Salvage Title Trucks for Sale

You will find salvage title trucks in various places—from online sources to a visit.

Online

Some of the best places include eBay Motors, Craigslist, and AutoTrader. Most of these are posted with descriptions and history of the vehicle.

• Insurance and Salvage Auctions: Auto salvage companies and insurance firms often carry salvage title vehicles. Sites such as Copart and IAAI (Insurance Auto Auctions) specialize in salvage vehicles.
• Tow Yards or Auto Salvage Lots: Local tow yards or salvage lots may sell trucks with salvage titles. These vehicles are often sold "as-is," so it pays to inspect them carefully.
• Salvage or Rebuilt Title Dealerships: Dealers that buy and sell vehicles having a salvage rebuilt title. This means the vehicle is rebuilt and safe to be driven.

Conclusion

A salvage title truck makes for an excellent save on a vehicle, but with important caveats. If you are willing to take on repair jobs, then buying a salvage title vehicle is a safe route. However, there are risks associated with the purchase of a salvage title vehicle. These include hidden potential problems and the sheer possibility of having high costs when repairs become inevitable. It is also possible that there will be problems down the road, especially in selling or financing the truck.

You will make an informed decision by doing proper research, a professional inspection, and fully understanding the legal and mechanical aspects surrounding salvage titles on trucks. So if you are handy and can repair the salvage title truck or find the right mechanic you can trust, then purchasing one would be a cost-effective solution. However, if you are not at ease with the idea of potentially having some undetected problems, it is probably safer to eschew salvage title and instead get a vehicle with a clean title.