Can someone explain what it means when a car is labeled a total loss? My 2010 Ford Focus still runs and drives fine.
Total loss means the insurance company decided the cost to repair the car was more than its value. They declared it totaled, likely issued a salvage title, and the car was sold at auction. Someone then repaired it and is reselling it.
It’s not always a bad thing, but clean titles are better. Salvage titles hurt resale value, and insurance might only cover up to 70% of the car’s clean title value. Just make sure you’re getting a good deal. Sometimes it’s minor damage like vandalism, but it’s worth checking thoroughly.
@Aris
I’m an insurance appraiser, and this is spot on. One thing to add: many states have a special ‘rebuilt’ title for cars that were totaled but then fixed and deemed roadworthy. If it still has a salvage title, the repairs may not have been inspected, and there could still be problems.
At some point, the car was damaged badly enough to be declared totaled. The specifics matter, though.
A salvage title reduces a car’s value, but it doesn’t always mean the car is bad. Have it checked out, especially structurally. Sometimes it’s just cosmetic damage like dents or scratches that were fixed well. Just be sure you’re paying the right price—salvage titles should be cheaper than clean titles.
Some insurance companies won’t cover cars with salvage titles. Something to keep in mind.
For an older car like a 2010 Ford Focus, it doesn’t take much damage to total it. $1,000 in damage might be enough. If you’re considering buying it, get a pre-purchase inspection and proceed cautiously.
My Focus has been in two accidents and was totaled once by previous owners. I’ve had it for almost 4 years, and other than routine maintenance, it’s been great. No issues getting insurance, either.
What’s the replacement cost on it? Is it a sedan or a hatchback?
I’d avoid that car. There’s a chance the VIN could be fake, especially if the original car with that VIN was written off. Better safe than sorry.