Yes, you can trade in a salvage title car, but it is significantly more difficult, and you will receive a fraction of its normal market value. Most major dealership franchises will outright refuse a salvage title vehicle due to the immense liability and difficulty reselling it. Your best chance is with smaller independent used car lots or online car buying services like Carvana or Vroom, which may make an offer—albeit a very low one—after a thorough inspection. The core issue is that a salvage title indicates the car was previously declared a total loss by an insurance company, meaning repair costs exceeded a certain percentage (typically 75-90%) of its pre-accident value.
Trading in a salvage title car hinges on its current condition and the quality of the repairs. A dealership will heavily discount their offer because they assume significant risk. They cannot easily resell the car to another retail customer, as most banks won't finance a salvage title and insurers are hesitant to provide full coverage. Often, these cars are sold at wholesale auctions to rebuilders or for parts.
Here’s a comparison of potential offers for a 2018 Honda Civic with a clean title versus a salvage title, assuming similar mileage and good condition:
| Title Status | Estimated Trade-in Value Range | Potential Buyers | Key Challenges |
|---|
| Clean Title | $18,000 - $21,000 | All dealerships, private buyers | Standard negotiation |
| Salvage Title | $4,000 - $8,000 | Independent lots, online car buyers | Financing/insurance hurdles, perceived safety risk |
Your most profitable alternative is almost always a private sale. By selling directly to an individual who understands the car's history and is willing to handle the associated challenges, you can typically get a higher price than any trade-in offer. Be prepared to provide full documentation of the repairs to build trust with a potential buyer.
