Beware: Dealers Selling Salvage-Title Cars

Issue #183

Just when you thought buying a car couldn’t be any more challenging, now salvage-title cars are flooding dealer lots. We explain how you can avoid them (if that’s what you want).

Or, you can continue to read by scrolling down.

Market News

• A new EV battery is here, and it could be a game-changer. Here’s why. 

• Mercedes-AMG isn’t giving up on gasoline engines. It’s actually going bigger. 

• Ferrari announces the name for its first EV. It also releases this picture of the interior. What are your thoughts?

• Toyota is electrifying what was once its best-selling crossover, and this article explains why it makes perfect sense. 

• Ford plans to launch 5 new models under $40,000 by 2030. Here’s more (and, no, they’re not all EVs).

Safety and Recalls

• BMW recalls more than 87,000 vehicles because they can catch fire. Here’s more. 

• Chrysler recalls more than 456,000 vehicles, including Ram and Jeep models, because of a faulty trailer module. 

• Toyota recalls more than 100,000 Prius (Priuses? Priusi?) because the doors might open suddenly.

Car Culture

• Do you remember the Isuzu Trooper? Did you know it was rebadged 13 times by 10 brands. Here’s more on its fascinating history. 

• Nissan is committed to EVs, but not right now. It’s complex, and here’s more on the future of the troubled company. 

• These Soviet designs would never come to fruition, but they’re pretty crazy. 

• Is the Dodge Charger Sixpack powerful enough? This article explains. 

• Mazda still doesn’t rule out a new sportscar. Here’s more.

Video Of The Week

Jay Leno reviews the Slate truck. Does he like it? Check out his views on the “groundbreaking” truck.

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In The Know

Salvage Title Cars On Sale: The Unforeseen Consequence

Salvage title. These two words make any car fanatic wary; however, they could also spike your interest. You might suspiciously squint at the seller and say, “Tell me more about why it has a salvage title.” The reality is that, in the past, salvage title cars appealed to only a handful of people.

Now, things are changing. Used cars are so expensive that dealers are turning to salvage-title cars to keep selling. At first, the idea might seem shady, but as this article explains, it might be the only way for a buyer to get a car.

It’s no secret that new cars are expensive, with the average transaction averaging $50,000.

At the same time, the average price for a used car is $26,000, as KBB explains.

Buying a car is not cheap right now, no matter how you look at it. Not only that, but in a compounding effect, write-offs are becoming more common, as we had explained before.

Vehicles are more complex, sensitive, and expensive to repair. So, any minor damage could mean that your insurance doesn’t cover it. Therefore, more vehicles end up with a salvage title, and many of these end up in dealerships.

Should you buy a salvage-title car? In short, it’s up to you. However, before doing so, it’s important to know what doing so entails.

A salvage title means one of two things: the insurance company labeled it as a “total loss,” or the repair is worth more than the car.

Each state operates differently, so if you want to learn more about how your state handles these write-offs, you can read this article.

The fact that the car is labeled as a write-off doesn’t necessarily mean it’s undrivable. In fact, in some cases, the repair could be cheap. (Or, incredibly expensive).

We came across this article while researching this week’s issue, and it’s one of the best at explaining salvage titles.

So, buying a salvage title is a gamble, but here’s the most critical aspect of buying a salvage title: you must know you’re buying one.

That’s why you should be wary of dealers selling them. Most used-car dealers are looking for a profit, and they might sneak a salvage title car without your knowledge.

Then, there’s the “rebuilt” title, which is a salvage title car that has been repaired and conditioned to drive again. You can learn more here.

So, let’s say that you’re looking for a used car, and you’re not sure if it’s a salvage title. How do you find out? There are reliable websites such as Bumper (not a sponsor) and VehicleHistory (also, not a sponsor).

Some of these might charge for your search, but a small fee goes a long way against a massive repair bill.

With that said, if you’re actively looking for a crazy project with a salvage title, go ahead! They’re an adventure, and don’t forget to let us know if you’ve ever purchased one.