How does buy back work?

If you’ve totaled your car, you have the option to buy it back from the insurer as a salvage title car and repair it yourself. The total payout will be the car’s market value minus its salvage value (what the insurer would have got for it at auction), assuming you own it outright.

For example, if your car was worth $10,000 before it was totaled, your payout will be $10,000 minus its salvage value (let’s say $2000), giving you an $8000 payout, plus your damaged car.

When a car is considered totaled and given a salvage title, it’s because the cost to repair it is approximately 60%-70% of the car’s value. This is a cost you’ll inherit if you want to buy-back the car and make it roadworthy. 

You’ll also have to consider the cost of additional fees such as inspections, transport costs, replacement parts, and more.

You can use our salvage car value calculator to find out what your car is worth, and help you negotiate the value with your insurance company. 

You can still buy back your salvage title car if you’re paying for it on finance, but the process varies.

The loan still has to be paid, meaning any insurance payout will usually go straight to the lienholder to cover the outstanding loan amount. Anything leftover is given to you.

If you have Guaranteed Asset Protection (GAP), this will cover the difference between your car’s Actual Cash Value (ACV), and what you still owe on your loan if the car is totaled. 

For example, if your car is totaled and you still owe $12,000 on the loan, but the car’s insurance value (Actual Cash Value) is $10,000, GAP insurance covers the $2,000 difference. In a buy-back scenario, the insurer will pay $10,000 to your lienholder, GAP insurance pays the $2,000 you still owe, and you pay the salvage value (let’s say $2,000) to get the car back.

Talk to your insurer and lienholder for more information. 

Should you buy back your salvage title car? 

Is it okay to buy back your salvage title car? Here are a few things to consider first.

Type of damage 

Why was your car totaled in the first place? The damage to salvage cars can vary, with each type of damage carrying its own risks. Consider these carefully before you buy back your car.

• Collision damage: This will depend on the severity of the collision. If the airbags, frames, or major mechanical parts need replacing, the longevity of the vehicle may be questionable.
  
• Hail damage: In some cases, your vehicle can be totaled due to hail damage. If the damage is purely cosmetic, it could be worth buying back and repairing.
  
• Flood damage: Flood damage can corrode the vehicles electrical systems, which may not show until months later. This could leave you staring down the barrel of some very expensive repairs.
  
• Theft recovery: If your vehicle was the victim of theft but later recovered, it might be worth buying back – depending on the extent of the damage. 

Repair costs

With the right skills and components, you can repair your salvage title car yourself. You’ll still need to pay for a third-party salvage vehicle inspection and prove the quality of the repairs to obtain a rebuilt title.

Getting quality replacement parts is critical. We recommend Original Equipment (OE) parts made specifically for your vehicle. These are high-quality, maintain resale value and will improve confidence in your vehicle’s safety when it’s inspected, or you need to prove its safety for insurance purposes. 

If you don’t have the skills to complete the DIY repairs yourself, it’s best to employ a trusted and competent mechanic.

DIY repairs can save money on labor, but mistakes can make the vehicle unsafe and reduce its resale value. Ensure you’re the right person for the job and always proceed with caution. 

Resale value

A salvage title has a significant impact on the car’s value, and can reduce resale value by as much as 20%-40% according to the Kelley Blue Book. Even if you’re looking to get a rebuilt title before you sell it on, you can expect its value to take a similar hit. 

If you’re planning to resell it, it’s not a wise investment. If you plan to drive it long-term, this matters less.  

State regulations 

Most states will require additional inspections before a salvage vehicle can qualify for a rebuilt title. This can cost anywhere between $50-200. Some states require more comprehensive inspections than others. Check potential costs and requirements with your local DMV or equivalent motor vehicle authority. 

True cost 

On the surface, buying back your salvage title car might look like a great deal, but hidden costs can add up fast. Make sure you’re aware of the real costs to ensure it’s the right decision for you. Fees may include: 

• Professional inspections: $50-$200 (varies by state) 
• Registration fees: $50-200 (depends on vehicle type)
• Repairs that weren’t fully completed by the previous owner: $100-$1000+ (minor fixes vs. more complex mechanical work)
• Transport costs: $100-$1000+ depending on location
• Quality replacement parts: $100-$2000+ depending on what’s needed 

Do your research to avoid getting burned. 

To improve your chances of selling a salvage title car:

• Keep receipts and repair records.
• Get a third-party inspection on the vehicle to reassure buyers.
• Consider using a specialized marketplace or auction.

You can also try to trade in a car with a salvage title at a dealership, but there’s a few things to consider: 

• Trade-in value may be significantly less than a clean title.
• Some dealers may offer only auction value.
• Unless it’s in high demand or a rare ride, the offer could be close to junk.

Final thoughts 

Is it bad to buy back your salvage car? Not always. It depends on your skills, budget, and whether you’ll be keeping the vehicle for the short term or the long term. Consider your circumstances carefully. 

FAQ’s

Is it safe to buy a salvage title car?

It’s only safe to buy one if you’re going to have it professionally repaired and inspected to make it roadworthy again. 

In terms of financial risk – buying your car back from the insurer and repairing it yourself can be costly, and you’re unlikely to make a profit if you resell it. 

Does a salvage title ever go away? 

No. A salvage title car will always carry a permanent record of its damage and history, even if it’s rebuilt. 

Are salvage title cars good to buy? 

If you have the budget, time, skills and know-how, buying a salvage title car can be a great deal. In other cases, it could leave you at a financial loss. There’s no yes or no answer. Consider your circumstances carefully.