What does the term "salvage" indicate when referring to a vehicle?

The term "salvage" refers to a vehicle that has been damaged to the extent that its insurer has declared it a total loss. This typically means that the cost of repairing the vehicle exceeds a certain percentage of its value, often around 70-80%. When an insurer totals a vehicle, they may pay out a claim to the owner and subsequently acquire the rights to the damaged vehicle. The vehicle is then usually assigned a salvage title, indicating that it is no longer roadworthy in its current condition and should be repaired or sold for parts rather than being sold as a functional vehicle.

The other options describe conditions that do not align with the concept of "salvage." A vehicle described as brand new and unused would have no prior damage, while a clean title indicates that a vehicle has not been significantly damaged or deemed a total loss. Upgrades with aftermarket parts do not inherently relate to the vehicle's salvaged status, as those modifications can be made to cars in any condition.