Vehicle with previous accident and declared total loss for various reasons IS ISSUED A SALVAGE TITLE (This title is Pink in color for Texas). Attention: There are many declared total loss salvage vehicles with minor to moderate damage with good potential for quality rebuilds. There are many reasons for total losses. Green Source Auto Groups Resources Help obtain the best salvage vehicles in the industry.
TVehicle with previous accident that has been Rebuilt and completed title conversion with DMV from salvage to Rebuilt. ALL SALVAGE VEHICLES FROM TEXAS MUST BE CONVERTED INTO REBUILT TITLE VEHICLES IN ORDER TO BE LEGALLY OPERABLE IN STATE ROADS. (EVERY STATE MAY DIFFER, BUT A TEXAS REBUILT TITLE IS BLUE IN COLOR AND RECOGNIZED IN ALL STATES AS A LEGALLY OPERABLE VEHICLE) ALL REBUILT TITLE VEHICLES ARE SALVAGE TITLE VEHICLES BEFORE BEING CONVERTED TO REBUILT TITLE.
Vehicles with a clean title are blue in color. Although all Clean titles are treated equally by banks and lending institutions, the truth is Clean title vehicles come with different histories. EXAMPLES:
A Rebuilt title vehicle is worth 70-75% of its clean title value.
Most banks will Not finance salvage / rebuilt vehicles unless you have good credit and relation with your bank, or you bank with a Credit union. Some credit unions may finance a big portion of a rebuilt title vehicle, but most credit unions will finance half of its Clean value. example: if vehicle is worth $10,000.00 the Credit union will only lend you $5,000.00, therefore you will need the other half and some for taxes and registration to Complete purchase. Another way to obtain financing is through a personal loan. Personal loans usually cost more than a regular car loan but may be less than in house financing and you will be able to keep your title since you will pay the dealer off and owe the bank. If you have a down payment for your vehicle you may want to only borrow on what you need to cover the rest of the vehicle including taxes & registration along with dealer fees.
Most banks will finance a clean title with total loss reported. There are also other financial lenders that will lend on Clean titles with total loss reported.
All insurance carriers will do liability insurance, and some will offer full coverage. In case of a total loss with a rebuilt title vehicle the insurance would pay you 70-75% of the vehicles clean title value. In some cases, it may be more than you originally paid for the vehicle.
Insurance agencies don’t like giving advice on salvage/ Rebuilt vehicles because it’s a liability issue, and they don’t know the extent of damage the vehicle might have had. There are vehicles that had minor to moderate damage and there are also vehicles that should never be rebuilt.
I advise all my customers to do their research on their Vehicles. There are good deals, and there are also many bad deals. Always make sure the vehicle you are purchasing has good working air bags and ask if any of the air bags were deployed during accident (airbag damage usually means big accident, there are some exceptions). Ask to see the before pictures. If you can see the before pictures of damaged vehicle, this is good as you may see for yourself whether air bags deployed, and the type of damage vehicle had. Work with companies that may offer an extended warranty. Dealers that offer extended warranty solutions are usually working with a 3rd party insurance company that knows the quality of vehicles they are selling and allows them to sell their warranties. Obtain a History report for the vehicle. The report may also give you accident report details that indicate minor to moderate damage, air bags details, and will show the vehicles last reported miles.
