What is Salvage Title?

A salvage title is a specific title brand applied when an insurer or provincial authority declares a vehicle a total loss, usually because repair costs exceeded a set percentage of its value after a collision, flood, fire, or theft recovery. A salvage vehicle generally cannot be registered for road use until it is repaired, passes a structural and safety inspection, and is reclassified, often as rebuilt. For dealers, salvage status is a material fact that must be disclosed to any buyer, and misrepresenting it is a major compliance breach. Salvage and rebuilt vehicles can be profitable inventory when handled transparently, but they carry financing, insurance, and resale limitations customers must understand. Always verify a vehicle's brand history before purchase and ensure the salvage or rebuilt status appears clearly on the bill of sale.