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What Is Clean Title vs Salvage Title?


What Is a Clean Title?

A clean title means the vehicle has no significant damage history and hasn't been declared a total loss by an insurance company.

What Is a Salvage Title?

A salvage title indicates the vehicle was declared a total loss, typically when repair costs exceed 70-80% of the vehicle's value.

Key Differences

FactorClean TitleSalvage Title
RegistrationImmediateRequires rebuild/inspection
InsuranceFull coverage availableLimited options
FinancingAvailableDifficult to obtain
Resale ValueFull market value20-40% reduction
Price at AuctionHigherLower

Rebuilt Title

A salvage vehicle can become "rebuilt" after:

  • Repairs are completed
  • State inspection is passed
  • New title is issued

Which Should You Buy?

Consider clean title if:

  • You need financing
  • Full insurance is required
  • You plan to resell soon

Consider salvage title if:

  • You can pay cash
  • You can repair it yourself
  • You're keeping the vehicle

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