From Clean Title to Salvage: How a Vehicle's Status Can Change Overnight
Download MP3Overview: Explore a real-world example of how a vehicle with a clean title can end up as a salvage title, even without a direct accident or insurance claim.
Key Points:
- What is a Salvage Title?
- Salvage titles can be created in several ways, not just through insurance claims.
- Insurance companies, owners, or manufacturers can designate a vehicle as salvage.
- Case Example: Tesla Purchase
- A person bought a Tesla with a clean title, but later discovered it was actually a salvage.
- The previous owner had repaired the vehicle themselves after an accident but didn't involve insurance, leaving the title clean.
- The vehicle was later inspected by the Tesla dealership, which found damage to the frame and battery, leading to the salvage title designation.
- How Salvage Titles Are Created:
- Insurance Claim: Insurance company pays out a claim and marks the vehicle as salvage.
- Owner Repairs: An owner repairs the vehicle and may choose to mark it as salvage to protect themselves when selling.
- Manufacturer Detection: The manufacturer may detect damage upon inspection and mark the vehicle as salvage.
- Why Carfax Isn’t Always Reliable:
- Even though the buyer checked Carfax, it may not always have complete information.
- Carfax only tracks vehicles if an insurance claim is filed. It won’t catch repairs made by the owner or manufacturers.
- It’s crucial to do thorough inspections, especially for electric vehicles like Teslas, which may have unseen damage (e.g., to the frame or battery).
- Tips for Buyers:
- Always do a physical inspection, especially for electric vehicles, to look for any signs of damage.
- Consider battery tests and frame checks to ensure there is no hidden damage.
- Be aware that Carfax records may not reflect all details, and do not solely rely on it when purchasing a vehicle.
Additional Resources:
- For further advice, you can book a one-on-one consultation with experts at actualhum.com for personalized guidance on your situation.
Conclusion: When purchasing a vehicle, be diligent and thorough in checking the vehicle’s history and physical condition to avoid surprises down the road.
