What condition must be met for a recovered theft vehicle to be classified with a salvage certificate?

For a recovered theft vehicle to be classified with a salvage certificate, the condition that must be met is that the repairs must be worth less than 50% of the replacement value. This criterion is significant because it helps determine whether the vehicle is economically viable to repair and use again or if it should be considered a total loss. When the cost of repairs exceeds half of the vehicle’s value, it indicates that the vehicle might not be worth the expense of restoring it to operational condition. Thus, classifying it as a salvage vehicle allows for proper documentation and ensures that the history of the vehicle is accurately reflected for future ownership or resale.

In contrast, if repairs cost more than 50% of its value, a different classification would apply, typically as a total loss or for insurance purposes. The other options entail scenarios that do not meet the necessary requirements for salvage classification; for example, a vehicle that has never been repaired wouldn’t qualify under this classification, and the status of the title itself does not inherently affect the salvage designation.