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Salvage Title

Any automobile that has been in an accident and declared a total loss by the insurance company (in other words, it would cost more to fix it than the car is worth at fair market value) is issued a salvage title and sold at an insurance auction.  If someone buys the automobile at the auction and then fixes it up to resell it, that person must disclose to the buyer that the car has a salvage title.

Beware buying an automobile that has a salvage title.  If the car has been totaled by an insurance company, there is a reason for that, and some tinkering to get the automobile into running condition is not going to solve the its problems.  It may look to be in decent shape, but there may be extensive hidden damage.  In general, it's not a good idea to purchase a car with a salvage title unless you plan to use it for parts.  If you think you have been sold a totaled car that did not have a salvage title, contact a lawyer.

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