A title usually receives a salvage brand when an insurance company decides a vehicle’s repair cost exceeds a set percentage of its book value (search “NADA Blue Book” or “Kelley Blue Book”), and the vehicle in question is a passenger vehicle no more than ten years of age. Thus in 2017, a 2015 Honda Accord with high repair costs would likely receive a salvage brand. The cause of damage is irrelevant; collision, hail, even water damage or theft recovery can result in a salvage brand, nor is sweat-equity a factor, since repair costs are based upon repair facility rates. This situation translates to a significant savings for the individual with an acumen for automotive repair. In South Dakota, salvage-brand vehicles are equal to unbranded vehicles in every respect except price. Lending institutions approve loans for lower amounts on salvage-title vehicles, but the purchase prices are also lower. The resale values of salvage-brand vehicles are are not as high, but neither is the sales tax. Salvage title laws vary from state to state, so verify your own state’s title policies before making a purchase.
