Risks in buying a car with a salvage title? (insurance, salvaged)

[armourereric]

I want to upgrade to a Toyota Sequoia, but I find a lot locally being sold with salvage titles, they look just fine and seem to run 25% under non salvage cars. Where's the catch?

[1AngryTaxPayer]

Buyer beware. If it was a hack job with frame damage you could have a problem. I might consider it if it was less than 1/2 price and plan on keeping it a long long time. but you will REALLY take the hit trying to sell it later as salvage. 25% off with a salvage title is no "deal".

[NinaN]

Or it was in a flood and there is mold or something similar in and under the seats and carpet. Not sure if you can insure them either.

[Electrician4you]

If you take the wholesale value of a salvaged car and then take 50% of that value you get what a salvage car should sell for. A normal dealer will want nothing to do with it, and most consumers won't want to buy it. It's gonna be really hard to get rid of it.
But you can insure salvaged vehicles.

[cb73]

First, it depends on why it was salvaged. Some insurance companies will junk a car for something that you consider minor.

If there's a particular car that you're interested in, try googling the VIN. Sometimes a hit will come up to the last salvage auction, showing pictures of the car before it was repaired, or listing the actual damage. Not always, but worth a try.

Also, have a good mechanic look at the car. It could have a damaged frame or some electrical issues that could end up getting you injured.

I remember a nearly brand new car that was salvaged because the driver was shot. It only needed a new window and a LOT of upholstery cleaning. Another car flew off the freeway, hit a tree and rolled a number of times. It looked like a pile of scrap metal and was being sold for parts only. A few months later it was magically brand-new looking--at least on the outside.

[1AngryTaxPayer]

Originally Posted by cb73

First, it depends on why it was salvaged. Some insurance companies will junk a car for something that you consider minor.

If there's a particular car that you're interested in, try googling the VIN. Sometimes a hit will come up to the last salvage auction, showing pictures of the car before it was repaired, or listing the actual damage. Not always, but worth a try.

Also, have a good mechanic look at the car. It could have a damaged frame or some electrical issues that could end up getting you injured.

I remember a nearly brand new car that was salvaged because the driver was shot. It only needed a new window and a LOT of upholstery cleaning. Another car flew off the freeway, hit a tree and rolled a number of times. It looked like a pile of scrap metal and was being sold for parts only. A few months later it was magically brand-new looking--at least on the outside.

Typically those end up as part of a stolen car from what I've read and heard from some shops.