Many people buy vehicles that have salvage titles since they cost a lot less.
Sometimes folks even end up buying one without realizing it, especially if they don’t look into the history of the vehicle first.
What they don’t realize is that this has a huge effect on whether your vehicle is eligible for an extended warranty.
This will help you understand salvage title cars and how owning one affects your ability to get an extended auto warranty.
What Is Salvage Title?
Sometimes if you buy a vehicle from an auction or a private party at an unusually low price, it will have what’s called a “salvage” title or a “reconstructed title”. It can also be called a “rebuilt title”.
A salvage title is a special title issued by the state when a vehicle is so damaged that the costs of repair are higher than the vehicle’s current worth. This means that the vehicle was involved in a situation where it was damaged enough to be declared a total loss by the owner’s auto insurance company.
This could be damage from a car accident, theft, vandalism, or even a natural disaster.
What Are The Disadvantages To Owning A Vehicle With A Salvage Title?
You face a couple of obstacles when you buy a vehicle with a salvage title:
* They’re difficult and sometimes expensive to get auto insurance for. And in the rare instance that they can be insured, only liability (the bare minimum required by your state) coverage is available.
* They’re ineligible for extended warranty coverage. If you find a company that will sell you a warranty for a vehicle with a salvage title, run far far away! No good company that has a history of paying claims will knowingly offer such a thing.
For more in-depth information on salvage titles and scams associated with them, courtesy of Carfax, click here.
What If I Already Bought A Warranty For My Salvage Title Vehicle?
If you forget to mention (or if you’re unaware) that your vehicle is a salvage title when you buy your warranty, you might not find out until it’s too late that your vehicle’s repairs won’t be covered.
So when you buy a used car, make sure you’re not throwing money away on a lemon. And don’t take the previous owners’ or dealership’s word for it.
Always be 100% sure it has a clean title! You can do this easily and cheaply by getting a vehicle history report from AutoCheck.
A salvage title isn’t the only thing that can void your extended warranty! Read about the 5 Ways You Can Void Your Warranty Without Knowing It.