How can a vehicle have a insurance total loss, but still have a clean title?
- Thread starter CarLuver
- Start date
Glitches and mistakes happen, with report services and at the DMV. When I sold cars in the early 2000's I ran many carfax reports on cars that I knew for a fact were totaled and they came back clean. It happens, and from what I was told it occasionally still does.
I've used auto insurance three times on my vehicles in 20 years - none were my fault and my insurance never paid out and no one ever reported to CarFax. In one instance, a guy t-boned my wife to the tune of $18k in repairs and that never showed up either. A clean title or Carfax means very little and that's why getting someone to inspect the vehicle is so important. In the T-boned car there was an easy giveaway as you could see they used slightly different fasteners in the wheel well on the repaired side - they were close but just a little different. I traded in that vehicle and never once was asked if it had been in an accident or if it had a clean Carfax. I gave them the keys and 30 mins later they made me a great offer.
Maybe they mean it was a previous salvage title but now the vehicle is repaired and able to be licensed without any inspections or problems. Meaning the title will say salvage but the car is able to be driven anywhere and is safe and ready for a new owner. I see them advertised as "previous salvage title." In some states the vehicles have a "junk" cannot be rebuilt for use.
Joeking Corvette beat me to it...... I think in many states "totalled vehicles" can be purchased with what's known as a, "Salvage Title". People are able to buy these vehicles cheaply, (some are actually sold by the pound), that were deemed by insurance companies as totalled. They then repair them to somewhat of a streetworthy condition, and sell them off at a profit.
They have a "clean title", but have to be defined as a "salvage". So the purchaser knows the vehicle has been badly damaged..... Or at least should.
To sell such a damaged, then repaired vehicle without the "salvage" term attached to it is illegal. But if so informed the purchaser is in fact getting a "clean title".
They have a "clean title", but have to be defined as a "salvage". So the purchaser knows the vehicle has been badly damaged..... Or at least should.
To sell such a damaged, then repaired vehicle without the "salvage" term attached to it is illegal. But if so informed the purchaser is in fact getting a "clean title".
GON
$100 Site Donor 2024
A few notes/ thoughts:
(1) what is the definition of total loss, and who is determining this. One example is a theft of a motor vehicle that has been paid out by an insurance company, and later recovered and the motor vehicle did not suffer a 70 percent body damage or more during the theft
(2) Insurance companies can make a mistake during the damage appraisal. In some states, that "salvaging" of a title can be challenged
I can come up with about a 1/2 dozen more speculative reasons, but one must read the motor vehicle title law and related statues of each of the 50 states to determine how the OP's question is happening, it an individual state issue.
GON
$100 Site Donor 2024
Salvage titles are generally not registrable vehicles in most states. A salvage title requires revision to "rebuilt" title to issue a registration for most states. Each state has its own rules on how to revise a salvage title to rebuilt title, and it generally is a painful process. The only state I am aware of that it is not a painful process is Oregon . One should be very careful for two reasons buying a car that had at any time a Oregon rebuilt title.
GON
$100 Site Donor 2024
They likely don't have what is commonly known as a "clean title". They more likely than not have a rebuilt title and the Seller/ flipper is not properly disclosing the title status.
GON
$100 Site Donor 2024
What is interesting is that Washington state is one of only two states that will issue a "rebuilt title on a vehicle determined by another state as not ever rebuildable.
One should be cautious buying a vehicle with a Washington state rebuilt title for this reason, if they ever want to register the car in another state. The "never rebuild" label stays with the car's history, and states like Florida and Texas will research this, and not allow the vehicle to be registered in their state.
South Dakota is one of the states where you can buy a salvage title vehicle, take it to the court house and buy the license plates and registration without any inspection whatsoever. A theft or hail damage car can be a "salvage" title and you can drive it anywhere. The vehicles can come from other states and still are only marked salvage in South Dakota. The vehicle will retain the salvage title even if it is fixed to 100% perfect form. The salvage title will stay with the vehicle for life in South Dakota. The titles are not changed to rebuilt after they are repaired.
GON
$100 Site Donor 2024
JC,
There is a "secret market" where a law firm will register cars from people in all 50 states in South Dakota to bypass the salvage title. SD charges a pretty penny for this, especially for newer motor vehicles, I believe it is the low four figures.
How to Register a Salvage Vehicle WITHOUT Any Inspections — Dirt Legal
Most states do not afford the option to legally register and drive a car still branded as salvage without having it inspected, and we all know what that means. If you get the car inspected and it doesn't pass muster, you will receive a veritable laundry list of repairs that need to be made, and then
www.dirtlegal.com
GON
$100 Site Donor 2024
I checked into what they are doing. I am not a lawyer, but I think they are not "technically" violating any SD statues. I do think they are exploiting the spirit and intent of why SD offers the registering of a salvage title.
This registering a salvage title in SD is a pricey endeavor, and in most cases, it is more cost effective to have the vehicle run through the salvage to rebuilt process than the SD option. I have reviewed the SD option and have found the "juice was not worth the squeeze- especially for newer vehicles, in many cases".
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GON
$100 Site Donor 2024
That statue in Washington state is centered on the requirement that a motor vehicle being reported to the state as "destroyed", is in fact destroyed. The statue does not correlate with the OP's question "" insurance total loss, but has a clean title". is this possible". WA simply wants to make sure that if a insurance company or the like states a vehicle is destroyed (gone through the shredder), it did in fact go through the shredder.
Of note, Washington state does not ever issue a salvage title. WA state only allows a bill of sale for a motor vehicle deemed a total loss by a insurance company. A WA state bill of sale can in fact be converted to a rebuilt title, I am in the process of doing such a action right now. It is somewhat painful.
One may want to avoid buying a loss vehicle in WA because of the above. Most states won't facilitate a bill of sale into a rebuilt title.
I believe it's worth it if you find the correct vehicle. I have purchased a few theft recoveries and hail damage vehicles and always came out way ahead. Usually you pay below wholesale and after they are repaired you are still way below wholesale and have a vehicle that can be sold for a profit. I also have purchased salvage titled vehicles and have been very happy with them. The place I buy them from is only about 10 miles away from my house and I can drive or inspect them within an hour. Most people cannot buy them because banks do not usually lend money for salvage vehicles. I would never pay money to have a vehicle changed from a salvage title to a clean title.
"destroyed" does not mean what you imply in this case. it is strange verbiage I agree.
There's the whole shooting match.
However since we cannot be certain that said vehicle was actually declared a total loss in WA it doesn't answer an unanswerable question.
As already mentioned states vary widely as do requirements when the insurance company retains the salvage vs the owner. For owner retained salvage some states have no reporting required by the owner.
There are also hail and cosmetic damage only exemptions along with year and value thresholds in some states.
It may be perfectly legal for it to have a clean title.
Anything with salvage or rebuilt on it is NOT a "Clean" title.
Many people outside of the industry confuse the terms "clean" and "clear" titles and tend to use the terms interchangeably when they either don't understand or they intend to deceive potential buyers.
Inside the industry a "clear" title means that the title does not show a lien on it and a "clean" title means that the title is not "branded". A "branded" title is a title that is branded (marked) by the state with salvage, rebuilt, flood, odometer rollback, manufacturer buyback (lemon law), etc. A title can be both "clean" and "clear", one or the other, or neither (like a lemon law buyback vehicle that has a lien on it). Additionally, there are some people who call a title "clean" when it is only "clear" but not "clean", and many of them know the difference but take advantage of the general public's lack of understanding of the difference.
Auto Auctions do not use either term. The consigned vehicles that have "branded" titles must be disclosed and vehicles that have liens on them cannot be consigned.
Inside the industry a "clear" title means that the title does not show a lien on it and a "clean" title means that the title is not "branded". A "branded" title is a title that is branded (marked) by the state with salvage, rebuilt, flood, odometer rollback, manufacturer buyback (lemon law), etc. A title can be both "clean" and "clear", one or the other, or neither (like a lemon law buyback vehicle that has a lien on it). Additionally, there are some people who call a title "clean" when it is only "clear" but not "clean", and many of them know the difference but take advantage of the general public's lack of understanding of the difference.
Auto Auctions do not use either term. The consigned vehicles that have "branded" titles must be disclosed and vehicles that have liens on them cannot be consigned.
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GON
$100 Site Donor 2024
Says who, the car flipper selling his rebuilt titled car to a uneducated buyer on Facebook?
