What is Salvage Title in a Carfax Report? A Guide to Protect You from Scammers

Here, if you are making up your mind to purchase a pre-owned or used car, you must know about the term salvage title while reading a Carfax report. For many first-time car buyers, this term can feel intimidating. Above all, a car’s title is its authorized identity, and if something is marked as "salvage," it usually means trouble/Crisis.

But what does it mean exactly? What should you do? Shouldn’t you take a chance with a car with a salvage title at all costs, or can they sometimes be a good deal?

Here, we’ll break it down in easy terms. You’ll learn precisely what a salvage title is, why it appears in a Carfax report, what threats and possibilities come with these vehicles, and how you can become a savvy buyer by using this information.

What is Salvage Title?

A salvage title is a special designation given to a car that has been declared a total loss by an insurance company. This occurs when the repair cost of the vehicle after damage exceeds a certain percentage of its value, typically 70% to 80%. In other words, if repairing a car is more expensive than it is worth, the insurance company will "write it off" and report it as a total loss or salvaged.

But here’s the most crucial thing many people don’t know: a car doesn’t always need to be destroyed to receive a salvage title. Sometimes, the damage is primarily cosmetic, limited to the car’s body, or caused by theft or water damage, such as flooding.

For example:

● A stolen car that was later recovered and repaired, but had parts removed, can receive a salvage title.

● Cars damaged by natural disasters such as floods, hurricanes, or hailstorms can be branded as salvage.

● Even relatively minor accidents can result in a salvage title if the repair costs exceed the insurance company’s threshold.

This is why it’s essential to carefully review the vehicle history report.

Salvage Title in Carfax Report

When you run a Carfax report on a used car, it will clearly show whether the vehicle carries a salvage title. Carfax gathers data from DMVs, insurance companies, and repair shops to create a complete history. If the car has ever been declared destroyed, Carfax will display that information.

This is a huge advantage for buyers because it allows them to review the car’s history before investing. Without this report, you could face serious problems by unknowingly buying a damaged vehicle. That’s why Carfax services are essential for anyone shopping for used cars.

For more information about title issues, refer to our detailed guide on 'What is a Carfax Report?' for an example. It explains what the Carfax Report is and its importance in a car’s salvage history.

Pros and Cons of Buying a Car with a Salvage Title

Buying a car with a salvage title isn’t always a bad idea. Some savvy buyers intentionally look for these cars to get a fair deal. Check out some of the main Advantages and disadvantages.