Salvaged titles are definitely treated differently from state to state. Here in California, it's not nearly as hard to get one registered as it seems to be in other states. But as been stated a few times in the thread, that type of title significantly affects the value of the bike.
Yes, this means that an experienced buyer who is confident they can accurately judge the existing / fixed damage, can in fact get a screaming deal on a salvage title bike. But that's pretty much the point. If it's not a screaming deal, and is only slightly discounted from a non-salvage title version of the same bike in the same condition, the pricing is way off and is not in the buyer's best interest.
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