A salvage title vehicle is a vehicle that has been declared a total loss by an insurance company. This means that the vehicle is considered to be unsafe for the road, and if you sell it, you must disclose that it has a salvage title.
If you traded in a salvage title vehicle for a new car and the dealer did not catch it, they may be able to rescind the sale and demand the return of the new car. This is because they were not made aware of the fact that the vehicle was a salvage title, and they would not have sold the car to you if they had known.
If the dealer does request the return of the car, you may be able to negotiate a settlement. For example, you may be able to agree to pay the dealer the difference between the value of the new car and the salvage value of your trade-in.
If you are unable to reach a settlement, the dealer may file a lawsuit against you to force you to return the car.
