A salvage motorcycle title typically indicates that the cost of repairing a motorcycle surpasses a certain percentage of its fair market value.
PHOTO Courtesy| Freepik
This percentage can vary by state, but most insurance regulations mandate that repair expenses fall within the range of 75% to 90% of the motorcycle’s normal listing value in good condition for it to be categorized as a salvage motorcycle.
Purchasing Salvage Motorcycles
In a standard procedure, damage occurs, and the motorcycle owner initiates an insurance claim.
The insurance company calculates repair costs based on national averages. If the repair expenses exceed the predetermined threshold, the insurance company declares the motorcycle a “total loss” or “totaled.”
A salvage company then acquires the totaled motorcycle. When a buyer purchases this vehicle, they must register it with a “salvaged” title.
Once this process is complete, the motorcycle obtains a salvage title, which is typically permanent across states, regardless of whether the motorcycle undergoes complete repairs.
Factors to Consider when Purchasing Salvage Motorcycles
We provide a list of considerations when purchasing salvage motorcycles, ensuring you avoid overpaying for the vehicle.
Request the vehicle history
Ask for the vehicle history report, which provides precise details on the damages the vehicle sustained and their nature.
It aids in determining the reasons for the salvage title, highlighting issues with the vehicle and assessing potential mechanical damage.
This step holds significant importance, especially in auctions where various vehicles, some suitable only for the scrap yard, are available.
A seller might present a cleaned-up bike with water damage at a seemingly reasonable price, and without the history report, you might only discover the extent of repairs needed after initiating the restoration process.
Exercise caution regarding stolen vehicles
Exercise heightened caution when buying a vehicle from a private or online dealer.
Ensure thorough checking on the National Insurance Crime Bureau website to confirm the bike’s legitimacy.
If uncertain, refrain from the purchase and explore other options.
Bring an expert mechanic for a thorough inspection
Having a dependable mechanic is crucial when considering the purchase of a salvage motorcycle.
Not only will they manage repairs, but they also assist in making informed buying decisions.
Ensure to bring the mechanic to the auction site in advance as they may identify issues overlooked during your research.
Another benefit of a trusted mechanic is potential access to affordable spare parts, enhancing the deal.
They can estimate the overall cost post-repairs, preventing any financial strain on your end.
Conduct thorough research
Ensure you explore multiple options and auctions, as you might not have the chance to visit each bike before the auction day.
Pictures can be misleading, and actual conditions may differ significantly.
Having a mechanic inspect the motorcycles can reveal unnoticed issues.
Reach out to reputable sellers, and be cautious with new retailers offering great deals by verifying vehicles on the National Insurance Crime Bureau website.
Some online auctions may not permit pre-purchase inspections, so request a vehicle history report.
If a seller refuses to provide the report, it signals potential issues, and trusting them is not advisable.
Inspecting Salvage Motorcycles
Each time authorities designate a motorcycle as “salvage,” a government agency must conduct a series of state-mandated inspections before permitting its return to the road.
The responsible agency may differ across regions, but, in most instances, either a department of motor vehicles or a police department carries out the inspection.
The assessment covers various aspects such as ensuring proper braking, functional turn signals, headlights, taillights, and other criteria, which may vary depending on the region.
Additional factors like emissions testing or assessing frame integrity might also be part of the inspection process.
Insurance for salvage motorcycles
Salvage motorcycles, like all road vehicles, must have mandatory liability insurance, covering property damage or bodily harm caused in accidents.
Obtaining collision coverage for your salvaged vehicle can pose challenges, as many insurers struggle to accurately assess its true value.
However, finding an insurer capable of evaluating salvaged motorcycles may lead to more affordable premiums.
Salvage motorcycles differ from one another
Salvage status signifies that repairs exceeded a specific percentage of the undamaged motorcycle’s value, irrespective of the damage’s impact on functionality.
Consequently, even for older models, significant repairs might lead to the motorcycle being declared totaled.
Similarly, a motorcycle with costly fairing or body molding is susceptible to salvage status from a minor stationary drop.
Opting for a salvage motorcycle becomes a great deal when dealing with listings showcasing superficial or easily repairable damage, or if you possess the skills to fix common issues on familiar models inexpensively.
Study state laws thoroughly
Each state imposes unique laws on salvaged vehicle restoration, and compliance can significantly impact repair expenses.
Certain regulations may also influence the insurance application, specifying mandatory coverage and limiting choices.
In California, salvage titles are not cleared; instead, you must apply for a rebuilt title post-detailed inspections.
Prioritize checking your state’s Department of Motor Vehicle requirements before finalizing any purchase.
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