What are salvage titles?
This is decided on a state-by-state basis. Salvage titles are issued in some states based on the degree of damage sustained by a vehicle. In other states, the car must be considered a total loss. These labels define whether the car can be rebuilt or utilized exclusively for components.
In some places, the title is turned after the estimated damage exceeds a certain proportion of the vehicle’s retail value (75 percent is one estimate in New York). This legislation applies even if the car is not a total loss and may be repaired.