What is a Salvage Title and is it worth buying such a car?

Andrew Altair, Founder
What is a Salvage Title and is it worth buying such a car?
Josh Sonnenberg / unsplash

When ordering a car from America, you will definitely come across the term "Salvage Title". For novice buyers, this term often sounds disturbing, however, more than 80% of cars imported into Georgia have this status. In this article we will discuss what Salvage Title means and what you need to know about it.

What does Salvage Title mean?

In the United States, when a car is involved in an accident, is damaged in a flood, or is stolen, the insurance company assesses the loss. If the cost of repairing the vehicle exceeds a certain percentage of its market value (usually 60-75%, depending on the state), the insurance company will assign it "Total Loss" status. The state changes the document and assigns a "Salvage Title" to such a vehicle. This means that the car is legally prohibited from driving on American roads until it has been completely repaired and passed a special inspection (after which it receives a Rebuilt Title).

Why do they buy salvage cars in Georgia?

The main reason is the price. Car repair (labor, details) in America is very expensive. What costs $10,000 in America can be repaired in Georgia for $2,000. Accordingly, the insurance company prefers to sell the car at an auction, and the Georgian buyer would rather buy it cheaply, transport it to Georgia and repair it here. We talked about it in detail in the article: How much does it cost to import a car from America.

What are the risks of Salvage Title?

Despite the low price, such cars are accompanied by risks:

  1. Hidden damage: It is difficult to determine if the engine, transmission or geometry of the vehicle is damaged by pictures alone.
  2. "Dollies" (cars in disguise): Sometimes dealers buy a badly damaged car, superficially "face it up" and resell it at auction. To avoid this, always check the car's history: VIN Code Check Guide.
  3. Water Damage: Flooded vehicles often have serious electronic problems that can take months to show up.

Customs clearance and registration in Georgia

According to the legislation of Georgia, the import and customs clearance of a vehicle with a Salvage Title is completely normal, without any additional obstacles. After repairing the car, you pass a technical inspection (technical inspection) and get Georgian state plates.

Conclusion and our service

Buying a Salvage Title car is really beneficial if you know how to choose the right car with the right damage (for example: Minor Dent/Scratches or local impact). If you do not have relevant experience, it is better to contact professionals. Our team can help you choose the perfect car: Auction Logistics and Marketing.

Frequently Asked Questions (FAQ)

1. Can I get Salvage Title car insurance in Georgia?

Yes. After the car is repaired and passes technical inspection, Georgian insurance companies usually insure such cars.

2. What is the difference between a Salvage Title and a Clean Title?

A clean title means that the car has never had any damage that would cause the insurance to write it off. However, a Clean Title does not mean that the vehicle has not been in an accident at all.

3. Which damaged Salvage car is better to buy?

The most requested are local impacts to the front or rear bumper, damage to the side doors or vehicles damaged by hail (Hail Damage).

4. Is it worth buying a flooded car?

We recommend that you avoid flood machines, as restoring electricity is often associated with high costs and unforeseen problems in the future.