Car shopping can be an expensive undertaking, so it’s no surprise many buyers look for ways to cut costs. For some, that means considering salvage vehicles — which can offer big discounts compared to traditional used cars.

Salvage title vehicles often come with significantly lower price tags, and in some cases, they can be a worthwhile find. But before jumping into the world of salvage vehicles, it’s important to understand what they are, how to legally get them back on the road, and the potential risks and rewards involved.

What Is a Salvage Title Vehicle?

According to the Registrar of Imported Vehicles, a salvage vehicle is one that has been “damaged beyond economical repair due to collision, natural disaster, accident, trespass, or other occurrence as determined by a licensing authority or a licensed insurance provider.” In other words, it’s a total loss.

When a vehicle is declared a total loss in Canada, it receives a branded “salvage” title. This designation remains on the vehicle’s record until it is properly repaired and inspected. Once it passes all the required checks and is deemed safe to drive again, the title can be rebranded as “rebuilt.” This rebuilt status stays with the vehicle for the rest of its life.

Even if a car doesn’t have a visible salvage or rebuilt title, it’s wise to pull a Carfax report to ensure it hasn’t gone through a process called “title washing.” This involves transferring the vehicle across multiple provinces to try to erase its branded status. A report may also reveal if a car is labeled “None” — meaning it may have had damage before branding regulations existed or the damage wasn’t deemed severe enough to trigger branding. Carfax can help clarify this history.

How to Buy a Salvage Vehicle

Buying a salvage title car is a lot like buying any used vehicle: you find the car, negotiate with the seller, complete the necessary paperwork, and arrange for transport. However, there’s one big difference — you can’t legally drive a salvage vehicle home, even if it seems roadworthy.

Instead, you’ll need to tow the vehicle to your home or repair facility. That’s because salvage-branded vehicles aren’t considered safe for road use until they’re repaired, inspected, and officially rebranded as “rebuilt” according to provincial and national guidelines.

One important caveat: you cannot register or rebrand a vehicle if its title indicates flood damage or it’s marked as non-repairable. These vehicles are permanently disqualified from road use and can only be sold for parts.

How to Clear a Salvage Title in Canada

To legally drive a salvage vehicle again, you’ll need to have its title changed to “rebuilt.” Canada’s Stolen and Wrecked Vehicles Monitoring Program (SWVMP) sets out the minimum national standards for this process, which generally includes:

1. Rebuilding Records

When repairing a salvage vehicle, the owner must document all major components and repair work. This record usually includes:

• Your full name and address (or the repairer’s, if different)
• A list of all major parts used, including source, purchase date, and donor vehicle info
• The vehicle’s year, make, model, and VIN
• Repair estimates from the insurer that declared the vehicle a total loss
• Four colour photos of the vehicle showing the front, rear, and both sides
• A photo of the vehicle on a frame alignment bench
• A declaration that the vehicle received a four-wheel alignment
• A notarized statement confirming all information is accurate and complete

Most provinces provide a specific rebuilding form you can download or pick up at your licensing office. You’ll need this form when presenting your car for inspection or transferring ownership.

2. Structural Integrity and VIN Inspection

Before a salvage vehicle can be rebranded as rebuilt, it must pass a structural integrity inspection and VIN verification at a provincially licensed inspection facility. While requirements vary slightly by province, most inspections cover:

• Confirming the vehicle isn’t branded as irreparable or flood-damaged
• Verifying the authenticity and completeness of the rebuilding record
• Ensuring the car being inspected matches the photos and VIN documentation
• Checking that the chassis, frame, and control points meet specifications
• Verifying key safety systems like airbags, seatbelts, brakes, suspension, and lights are fully functional

If the vehicle passes, the inspector completes a provincial inspection report. If it fails, you’ll need to fix the issues and book another inspection — possibly at a different facility, but with the full rebuild documentation and the previous failure report in hand.

3. Rebranding the Title as Rebuilt

Once your vehicle passes inspection, you can bring the completed inspection form to your provincial licensing office. They will update the vehicle’s title from “salvage” to “rebuilt,” which allows you to register, insure, and drive the vehicle legally in Canada.

Thanks to the Interprovincial Record Exchange (IRE) network, a rebuilt status stays with the vehicle permanently — even if it’s sold or registered in a different province.

Province-Specific Rules for Salvage Cars in Canada

While the SWVMP sets out national guidelines for converting a salvage title to a rebuilt title, each province may have its own additional requirements. Here’s a quick breakdown of what to expect based on where you live.

Alberta

• Before starting repairs, download Alberta’s Rebuilt Vehicle Work Plan, which acts as your official rebuild record.
• Contact a licensed Salvage Vehicle Inspection Facility (SVIF) to confirm what inspections are required during the rebuild.
• After repairs, return the vehicle to the SVIF for a final inspection.
• If it passes, you’ll receive an Inspection Certificate, which must be submitted to an Alberta registry agent within 14 days to rebrand the title as “rebuilt.”

British Columbia

• No additional provincial rules. Follows standard SWVMP guidelines.

Manitoba

• Contact a licensed Body Integrity Inspection Station to review requirements before beginning repairs.
• Complete the Application for Rebuilt Vehicle Certification — this serves as your rebuild record.
• After repairs and inspection, you’ll receive a Body Inspection Integrity Certificate (BIIC).
• Tow the vehicle to an approved inspection station to receive a Certificate of Inspection (COI).
• Submit the COI, bill of sale, and Transfer of Ownership Document (TOD) to Manitoba Public Insurance to complete the registration as a rebuilt vehicle.

New Brunswick

• Follows standard SWVMP rules.
• A licensed safety inspection is required before rebranding.

Newfoundland and Labrador

• No variations from national SWVMP rules.

Nova Scotia

• Follows SWVMP guidelines.
• Nova Scotia’s Registry of Motor Vehicles (RMV) recommends calling 1-800-898-7668 for detailed guidance before beginning the process.

Ontario

• Follows SWVMP rules.
• Only a Type 6 Motor Vehicle Inspection Station (MVIS) is authorized to perform the structural integrity inspection.

Prince Edward Island

• Requires a standard safety inspection from a licensed facility following the structural integrity check.
• Otherwise, follows SWVMP rules.

Quebec

• Follows most SWVMP requirements.
• A mechanical inspection certificate is required after the structural integrity inspection, issued by a licensed Quebec inspection station.

Saskatchewan

• Requires completion of an Application to Obtain Certification of a Rebuilt Vehicle — available from SGI salvage branches, claim centres, or body integrity stations.
• A mechanical inspection is required in addition to the structural inspection.

Financing for Salvage Cars

Financing a vehicle is often part of the buying process, but when it comes to salvage title or even rebuilt title cars, it gets more complicated.

Most major banks and traditional lenders won’t finance salvage vehicles due to their reduced value and unknown history. Since these cars are considered high-risk, lenders are hesitant to offer loans on vehicles that could be difficult to resell or insure.

That said, some specialized or alternative lenders may offer financing for rebuilt title vehicles — especially if the loan-to-value ratio is low (meaning the loan amount is much smaller than the vehicle’s actual worth). However, be prepared for:

• Higher interest rates
• Stricter approval criteria
• Larger down payment requirements

If you’re considering financing a rebuilt vehicle, it’s a good idea to:

• Compare multiple lenders, including credit unions and niche auto loan providers
• Ensure the vehicle has passed all required inspections and holds a valid “rebuilt” title
• Review your insurance options first — some insurers won’t offer full coverage
  

Flood Damage

Flood-damaged vehicles can never be rebranded as rebuilt in Canada. If a car has flood damage on the title, it’s for parts only — not for road use.

Even if the title doesn’t show flood damage, inspect the vehicle carefully for signs like:

• Musty or mouldy carpet or headliner
• Rust in unusual places (e.g., inside headlight housings)
• Water stains, warped panels, or silt residue under seats or in the trunk

Frame Damage

Frame damage can be tough to detect — especially on unibody vehicles, where the body and frame are a single structure.

Watch for signs like:

• Creases or dents in the engine bay sheet metal
• Uneven gaps between body panels
• Bends or warping in the undercarriage or floorboards
• Misaligned doors, hood, or trunk

On body-on-frame vehicles, look for damage to the steel frame rails running beneath the body. Significant damage here is a strong sign the car isn’t worth repairing.

Deployed Airbags

Airbags are expensive to replace — often ranging from $200 to $1,000+ per unit. Most vehicles have at least six, but some have 10 or more.

A salvage title triggered by airbag deployment should raise questions. You’ll want to:

• Check which airbags were deployed
• Request repair estimates from a licensed shop
• Confirm whether additional components like sensors or the ECU were affected

Replacing deployed airbags can get expensive fast — and skipping them could put your safety at risk.

Pros of Buying a Salvage Title Vehicle

Buying a salvage title car can feel risky, but for the right buyer, there are some real advantages — especially if you’re mechanically savvy or just looking for a great deal.

Save Money Upfront

Salvage title vehicles are typically priced well below market value. Depending on the extent of the damage and how well the car has been repaired, you could save 20% to 40% compared to a similar car with a clean title — according to Kelley Blue Book estimates.

Do-It-Yourself Repairs

If you have the tools and knowledge to do repairs yourself, a salvage car can offer serious value. Canadian regulations allow vehicle owners to perform their own repairs, as long as:

• All work is properly documented
• All components meet safety requirements
• The car passes structural and mechanical inspections

This can significantly cut costs compared to hiring a professional shop — and may make rebuilding worthwhile if you’re confident in your skills.

Cons of Buying a Salvage Title Vehicle

While the upfront savings can be tempting, salvage title vehicles come with a fair share of risks and hidden costs. Here are the biggest drawbacks to keep in mind:

Unknown Severity of the Damage

Even if the vehicle looks fine on the outside, there may be significant issues under the surface — especially in theft-recovery or vandalism cases.

Electrical damage, hidden structural problems, or compromised safety systems can lead to expensive repairs later on that wipe out any initial savings.

The Headache of Getting the Repairs Right

Rebuilding a vehicle to inspection standards isn’t always straightforward. Even if you follow the requirements to the letter, inspectors might uncover issues that weren’t obvious during the rebuild.

If the vehicle fails inspection, you’ll need to fix the issue and schedule a reinspection — which adds time, stress, and money to the process.

Insurance and Financing Challenges

Most major lenders won’t finance salvage or rebuilt vehicles. Even if you can find a loan, you may face:

• Higher interest rates
• Larger down payment requirements
• Limited financing options

Insurance is also tricky. Many companies won’t offer full coverage on rebuilt vehicles — and if they do, premiums can be much higher. In some cases, you may only qualify for basic liability-only insurance, leaving you on the hook in an at-fault or no-fault accident.

Potential for Future Problems

Just because a car passes inspection doesn’t mean it’s issue-free. Problems like premature suspension wear, hidden engine damage and faulty electronics or sensors can take months or years to show up — and may require costly repairs down the road.

Permanent Rebuilt Branding

Even after passing inspection and earning a rebuilt title, the car is branded for life. That rebuilt status will follow the vehicle forever, significantly reducing resale value and potentially scaring off future buyers or trade-in offers.

Some buyers simply won’t consider a car with a rebuilt title, no matter how well it’s been repaired.

Forget the Salvage Title at Clutch

If you’re looking for a great deal on a used car — without the stress, risk, or red flags of a salvage or rebuilt vehicle — Clutch is here to help.

We offer a wide selection of high-quality used cars that have never been salvage-branded. Every vehicle we sell goes through a rigorous 210-point inspection and reconditioning process to ensure it meets our high standards for safety and reliability.

Plus, we stand behind every sale with:

• 3-month / 6,000-km warranty
• 10-day money-back guarantee
• Transparent pricing and no hidden fees — just a simple, 100% online buying experience

Got a trade-in? Use our online tool to get an instant estimate and upload a few photos to receive a firm offer — no haggling, no pressure.

Don’t gamble on a salvage title. Shop smarter with Clutch and drive away with peace of mind.