This option of buying a second hand car can be an inexpensive option for car shoppers on a budget. When a vehicle has been in an accident and the total damage exceeds a certain percentage of the value of the car , the insurance company will decide that it is not economically feasible to repair it and declares it a "total loss." What happens next varies by state, but in general, the motor vehicle agency will then issue a "salvage certificate" to the car. This means that the car cannot be driven, sold or registered in its current condition.
Usually, the insurance company sells the car to either a repair facility or parts dismantler. If the car is repaired, most countires require that it pass a basic safety inspection before the motor vehicle agency will issue a new title. When authorised personal does issue the title, it's "branded," and notes that the car has been salvaged or rebuilt so future owners are aware of its past. On one hand, salvage-title vehicles can present a value for a buyer, someone on a budget, or someone in need of a second vehicle. In general, buyers can get salvage-title vehicles for two-thirds the price of a car.