CAA Salvage, Rebuilt, and Title-Branded Vehicles

Question 1

What is a 'salvage title' in the context of U.S. vehicle registration?

Accepted Answer

A title issued when an insurer declares a vehicle a total loss and takes ownership

Answer

A salvage title is branded onto a vehicle's title when an insurance company pays a total loss claim and acquires the vehicle, indicating it has been declared a constructive or actual total loss.

Question 2

What threshold do most U.S. states use to declare a vehicle a total loss for title-branding purposes?

Accepted Answer

When repair cost meets or exceeds a stated percentage (commonly 75–100%) of the vehicle's actual cash value

Answer

Most states brand a title when repair costs reach a threshold—commonly 75% to 100% of ACV—though the exact percentage varies by state law.

Question 3

A vehicle with a salvage title has been repaired and passes a state inspection. What title brand does it typically receive?

Accepted Answer

Rebuilt or reconstructed title

Answer

After a salvage vehicle is repaired and passes a state safety inspection, the state re-titles it as 'rebuilt' or 'reconstructed,' permanently noting its salvage history.

Question 4

How does a salvage or rebuilt title typically affect a vehicle's market value compared to an equivalent clean-title vehicle?

Accepted Answer

It significantly reduces market value, often by 20–50% or more

Answer

Title branding causes substantial market value reduction because buyers perceive higher risk, many lenders refuse financing, and resale options are limited.

Question 5

What is 'title washing' and why is it a concern for automotive appraisers?

Accepted Answer

The fraudulent practice of retitling a salvage vehicle in a state with lenient title laws to obtain a clean title

Answer

Title washing involves retitling a salvage vehicle in another state that may issue a clean title, concealing the vehicle's damage history and defrauding buyers.

CAA - Certified Automotive Appraiser Practice Test

CAA - Certified Automotive Appraiser Practice Test

CAA Salvage, Rebuilt, and Title-Branded Vehicles