What is Salvage title?

What’s the Difference Between Used, Rebuilt and Salvage Title Cars in Dealer Auctions Online?

By Mike Richards Updated: 05/22/2019 Posted: 07/31/2017

When you first browse the inventory of an online dealer auction for cars, you’re sure to be impressed. There are thousands upon thousands of cars available, all across virtually every make, model and year you can think of! With this kind of choice, you’re pretty much guaranteed to find the car that you want. What’s more is that you stand to save thousands of dollars on your purchase. It really is a win-win.

But, beyond makes and models, there are two primary categories of vehicle that you’ll encounter through a dealer auction website. Namely, you’ll encounter used vehicles and salvage vehicles. In order to make the most informed bidding decision, you should understand the difference between rebuilt and salvage title.

Used Cars Are Just What You Think…

The used car category is, rather obviously, the easiest one to understand. These kinds of vehicles are no different than the used cars you’d find available in a dealership or through a service like Craigslist. In fact, you’ll discover that a great many of these used cars come right of the lots of used car dealerships. In order to make way for new inventory, dealerships will often clear away old inventory through dealer auctions.

In addition to the above, you’ll find used cars from a number of other different entities. For example, you’ll encounter used vehicles that are being auctioned off from law enforcement impound lots. In addition, there will be cars auctioned off by government agencies and private businesses that were used by their employees.

Salvage Cars Are Misunderstood by Dealer Auction Newbies

It’s salvage cars that warrant a closer inspection. In a nutshell, these are vehicles that have – for one reason or another – had their policies paid out at 75% or more to the insured. Dealer auction newbies often make the mistake of believing that this means all salvage cars are ‘totaled’ wrecks.

Sure enough, some salvage cars are those that have been severely damaged through a collision or another calamity and repaired. However, there are other reasons that a salvage car can be designated as such. For example, sometimes insurers will pay out of a policy as a means of expediting the settlement of a claim. In addition, stolen and then recovered vehicles are designated as salvage, even if there’s no damage to the vehicle itself.

Are Used or Salvage Cars Right for Your Needs?

In order to get the best possible deal when using online dealer auto auctions, you need to be open to both used and salvage cars. Casting a wide net is ultimately what’s going to lead you to a car that’s perfect for your budget, needs and circumstance.

In casting this net, you will want to search far and wide. To help you with this, though, remember that you’ll have access to an auction specialist. This person can help you to separate the wheat from the chaff, drawing your attention to vehicles, used or salvage, upon which you stand to save the most.