Salvage Car Scams to Avoid

Salvage Car Scams to Avoid

A salvage car is one that has been involved in a major accident and been deemed to not be worth repairing by an insurance company. As an insurance company declares a vehicle, it pays the maximum market value of the vehicle to the insured and then disposes of the vehicle by auction it off to the highest bidder.

The vehicle is then issued a special type of title by the states where the vehicle is registered. Any salvage title has a stigma that is always attached to it and is worth nowhere near as much as than comparable vehicle that has a clean title — even if the vehicle has been restored to 100% operating condition.

While most state and federal laws require a used car dealer or private seller of a vehicle with a salvage title to disclose the fact to the buyer, some unscrupulous sellers did not. So, here is some ordinary car scams associated with salvage titles that you should be aware of.

Title Washing Scam

Numerous salvaged title vehicles are purchased by rebuilders and then rebuilt so that they appear to be normal used cars. During a salvage car purchase, you can certainly save a lot of money, you have to be aware of the title washing scam. This type of scam refers to lemon laundering and is still practised by many unscrupulous used car dealers and car brokers.
The scam includes registering the vehicle in several states, one after another. This usually takes place in states that have rather lax or loose rules and regulations concerning the documentation of car titles. In any case, when a dealer makes a vehicle registration, there is a good chance that the title will eventually end up not having a salvage or junk title annotation on it. The dealer is then able to sell the vehicles as a normal used car and usually, collects a premium on the vehicle.
The best way to avoid a title washing or lemon laundering, scam is to do a title search on the Internet.