Just because an insurance company has deemed a car too expensive to fix after a wreck or other unfortunate incident doesn't mean it can't be sold and used by someone else. California, like other states, designates these vehicles as salvage and sellers must disclose this status to potential buyers.
In California, a "salvaged" vehicle is one that has been substantially damaged from an accident or some other event such as vandalism, hail or flooding. It can also include a vehicle that was taken apart, usually for parts. When the cost to repair a vehicle exceeds its value, the insurer will often declare it a total loss. The Department of Motor Vehicles subsequently issues a salvage certificate of title for the vehicle.
Salvaged vehicles can be sold in California. However, sellers must inform potential buyers when a vehicle falls into this category. Licensed dealers must go a step further and post a National Vehicle Title Information System report on salvaged vehicles being sold on their lots. The only time dealers are not required to do this is if the vehicle is a recreational vehicle, motorcycle or off-road vehicle, or a NVTIS report does not exist for the vehicle. Also, keep in mind that salvaged vehicles are sometimes repaired with stolen parts. If police or the DMV discover stolen parts on a salvage vehicle you have purchased, you will be prohibited from registering the vehicle and the parts will be seized by authorities. For these reasons, be sure to obtain a complete vehicle history report from the seller or independent source, such as Carfax.
