What characterizes a salvage vehicle?

A salvage vehicle is characterized by the fact that its repair costs exceed its market value. When a vehicle is involved in an accident or suffers significant damage, an insurance company or owner may determine that it is no longer financially viable to repair it. In such situations, the vehicle is often declared a total loss or salvage. This classification is crucial because it informs potential buyers and mechanics of the vehicle's condition and value. Salvage vehicles typically require extensive repairs before they can be returned to the road, and their title may indicate that they have been branded as such, impacting future resale and insurance options. The other options do not accurately define a salvage vehicle; for instance, being fully operational or having resale value does not align with the criteria for salvage designation.