From Clean Title to Salvage: How a Vehicle's Status Can Change Overnight

The Expert Podcast

Overview: Explore a real-world example of how a vehicle with a clean title can end up as a salvage title, even without a direct accident or insurance claim.

Key Points:

• What is a Salvage Title?
  • Salvage titles can be created in several ways, not just through insurance claims.
  • Insurance companies, owners, or manufacturers can designate a vehicle as salvage.
• Case Example: Tesla Purchase
  • A person bought a Tesla with a clean title, but later discovered it was actually a salvage.
  • The previous owner had repaired the vehicle themselves after an accident but didn't involve insurance, leaving the title clean.
  • The vehicle was later inspected by the Tesla dealership, which found damage to the frame and battery, leading to the salvage title designation.
• How Salvage Titles Are Created:
  • Insurance Claim: Insurance company pays out a claim and marks the vehicle as salvage.
  • Owner Repairs: An owner repairs the vehicle and may choose to mark it as salvage to protect themselves when selling.
  • Manufacturer Detection: The manufacturer may detect damage upon inspection and mark the vehicle as salvage.
• Why Carfax Isn’t Always Reliable:
  • Even though the buyer checked Carfax, it may not always have complete information.
  • Carfax only tracks vehicles if an insurance claim is filed. It won’t catch repairs made by the owner or manufacturers.
  • It’s crucial to do thorough inspections, especially for electric vehicles like Teslas, which may have unseen damage (e.g., to the frame or battery).
• Tips for Buyers:
  • Always do a physical inspection, especially for electric vehicles, to look for any signs of damage.
  • Consider battery tests and frame checks to ensure there is no hidden damage.
  • Be aware that Carfax records may not reflect all details, and do not solely rely on it when purchasing a vehicle.

Additional Resources:

• For further advice, you can book a one-on-one consultation with experts at actualhum.com for personalized guidance on your situation.

Conclusion: When purchasing a vehicle, be diligent and thorough in checking the vehicle’s history and physical condition to avoid surprises down the road.