Salvage title cars are basically autos which have been written off as a total loss. This means that the vehicles in question have been seriously damaged in some way. For example, they have been totalled in an accident, sold for scrap, or passed through a natural disaster such as a flood or a fire. Legally damaged automobiles have to be given a legal branding (title) so that the public is aware of what they are purchasing. This legal designation indicates that car was written off by the insurance company representing the previous owners because the cost of repair to these autos would be greater than market value of the age and model of the car.

The salvage title cars branding is compulsory in most of the provinces in Canada and most of the states in the USA. Additionally, difference countries would have different laws regarding the branding of these vehicles. Therefore, interested car buyers do not have to worry if they are purchasing simply a second-hand car or a damaged car. There are markets for both types of vehicles. These previously damaged automobiles usually are sold at auctions and possess a vehicle registration number. This vehicle registration number can also insure the automobiles are not stolen and the numbers are registered.

Salvaged title cars have been inspected and a permanent record of the damages sustained is recorded. The legal definition of salvaged can differ from province to province and state to state so it is important consumers understand exactly what they are purchasing. Wrecked automobiles are cheaper than second-hand cars and if consumers are planning on purchasing them, they must know if they are repairable, have been repaired already or the vehicles would be purchased to sell for scrap. The attraction of purchasing these title automobiles is that they are cheaper, most are repairable, and if not, the return from selling them for scrap parts can exceed the purchase price of these vehicles.