A recent Fox Business article reported that over 2.5 million motor vehicles are totaled each year, with about 1.5 million of those vehicles repaired and put back on the road. It is estimated that vehicles that have a salvage-title are worth about 50 percent of its Kelly Blue Book value. Unfortunately, because of this, some used car dealerships resort to unfair and deceptive business practices when it comes to selling vehicles without disclosing that they have a California salvage title.
While many may think that buying a vehicle with a salvage-title may save money, there are a few important things to consider. First, insurance companies may not be willing to offer coverage on a salvage-title vehicle since it is often difficult to determine the vehicle’s value. Additionally, financing these vehicles can be complicated, since lenders may not be willing to loan money without insurance to protect the vehicle.
Second, but perhaps most importantly, vehicles with salvaged titles can be dangerous and rebuilders may cut corners to make a profit. Structural and alignment issues occur, and a vehicle’s air bags can be skimped on.
Third, a salvage-title vehicle is worth significantly less than a vehicle that has never been damaged in an accident.
Lastly, if a consumer is looking to sell a vehicle with a salvaged title, the pool of potential buyers is quite small, due to many of the reasons listed above. It can be quite challenging to sell a salvage-title vehicle since there are financing and insurance issues attached.
If these reasons sound unappealing, that is because they are, and used car dealers know this. This is often why consumers are not told when a vehicle possesses a salvaged title. For over 20 years, lawyer Howard D. Silver has been helping consumers who have been victims of unfair business practices in California. Call 855-341-2611 to have Mr. Silver start helping you.