Is it true that if you buy a car from an auction you recieve a salvage title?

That is not true. It has a salvage title because is has been deemed totalled by an insurance company. Do yourself a favor and stay away from this vehicle. While it might seem like a good deal now, the salvage title will scare off potential buyers for it when you try to sell it down the road. About half of the used cars sold on car lots these days are cars bought from auctions. Most of them are from rental companies or so called "lease returns".

The seller is not being truthful to you, unless he bought it at a salvage auction. Selling a car on auction does not give a car a salvage title, an insurance company gives a car a salvage title when the vehicle is deemed a total loss. Each state has different criteria for branding a title. With the age of the car in my state, a salvage title would mean that this car should not be put back on the road, because it has sustained severe structural damage. Future problems with buying this car would be range from a low to no resale value or finding out the hard way that the safety features in the vehicle do not function properly.

Sorry thats total BS!

My husband and I own a used car lot. It is not true that just because a car is purchased at auction it has a salvage title. A car only has a salvage title if it was in an accident severe enough that the car was deemed to be totaled. As far as insurance the salvage title will not cause you problems, but many banks and lending institutions will not loan you money to buy a vehicle with a salvage title, and when you get ready to sell it the vehicle is worth almost nothing. My recommendation it to stay far away from any car with a salvage title. You have no way of knowing how much was really wrong with it or how well it was repaired. It could be a flood car and have electrical issues, or have frame damage that you can't see.