How to Price a Salvage Title Vehicle

The term salvage can mean different types and degrees of damage in various situations. A previously salvaged vehicle might have sustained heavy flood damage or a bent frame in an accident or it could have been recovered soon after a theft and never been damaged. While a salvage title will always reduce the resale value of the vehicle, it is critical to assess what type of damage was done and to get a detailed inspection of the car or truck in question.

Instructions

1

Uncover and document the event that resulted in the issuance of the salvage title. Whether you are buying or selling the vehicle, you can arrive at a much better price estimate if you know the details of what has happened and have access to solid proof of the events. Obtain pictures of the crash, flood, fire or other adverse event and get all receipts for replaced parts and labor performed. Also try to find out how much the vehicle was sold for in the damaged condition. If a car that ordinarily sells for $20,000 changed hands for $14,000 immediately after the accident or theft, perhaps the damage wasn't catastrophic. If the price was $7,000 for the same car, however, it was probably in fairly bad shape. Keep in mind that withholding key information about the vehicle's past while trying to sell it may have legal consequences later on.

2

Get the vehicle inspected, if possible, at an authorized dealer. The factory-authorized dealerships usually charge more for both parts and labor. However, when dealing with a salvage vehicle these are the best places to get the car inspected. Not only will an authorized dealer be able to tell if the car has been properly fixed following the adverse event, he can also identify whether original parts have been used during the process. While a mechanic who works on all sorts of vehicles may not always be able to identify which parts on a vehicle are original factory parts, authorized dealers are more familiar with every single component on the car brands they specialize in.

Following the inspection, get a statement that summarizes the findings.

3

Find comparable vehicles and calculate the average price depreciation for salvages. Search the used car databases for cars or trucks with salvage titles and try to find vehicles that are similar to yours in terms of manufacturer, trim level, mileage, model year and type of damage previously sustained. Just as importantly, match the level of documentation. If you are buying or selling a vehicle with "full documents" detailing what happened, how it was fixed and what kind of state the vehicle is in at the moment, you should reference vehicles with similarly detailed histories and paperwork. If you have not been able to access most of this information, your reference point should be similarly undocumented or under-documented vehicles.

If you cannot get exact hits at first, widen your search criteria and include other makes and models with similar damage levels and documentation, just to see how much lower they are selling compared to similar cars that have never been damaged. The percentage by which vehicles depreciate as a result of a particular type of event, backed up by similarly detailed evidence, is often similar across brands and models.

4

Another useful method is to reveal the car's full history to a reputable dealer and ask for a quote. Typically, dealers offer 15 to 25 percent less for a car than what you can get by selling it to a private party. While certain dealers may refuse to make an offer for a vehicle with salvage title, many will, so keep trying.