Salvage Titles More Likely as Pickup Values Fall

An interesting side effect of the recent decline in used pickup truck values is the potential for more salvage titles.

As cited in the blog below, a three-year-old Chevy Tahoe might have fetched $19,700 in September 2007. Today, a three-year-old Tahoe might be worth $16,400 at trade-in. That same math can be applied to used pickup trucks.

A salvage title is a vehicle with 75% or more damage of its value before the accident. The amount of damage would have been $14,775 in 2007. Now, the threshold is reached at $12,300 in 2008 – or what would have been 62% of the value in 2007.

Auto body costs are rising just like everything else. As pickup and SUV values decline, you’re going to reach a point where these vehicles are branded salvage with a lot less damage. There could be some real savings out there if you do your homework.