What does "salvage" mean in the context of an appraisal?

In the context of an appraisal, "salvage" refers specifically to a vehicle that has sustained significant damage to the extent that it is not economically feasible to repair it. This designation often comes into play after an insurance company has assessed the vehicle's condition and determined that the cost of repairs would exceed the car's actual cash value. As such, the vehicle is typically categorized as a total loss, and its value is often related to its parts or materials rather than its ability to function as a whole. This classification is critical for both insurers and appraisers, as it informs decisions regarding payouts and the vehicle's subsequent handling, whether it be for resale, parts, or disposal.

In contrast, the other options address different conditions or states of a vehicle that do not align with the concept of salvage in this context. For instance, a vehicle that can be economically repaired would not be classified as salvage but rather as a repairable unit. Similarly, vehicles being preserved for future use or sold solely for scrap metal represent distinct categories that do not capture the essence of "salvage" as an appraisal term focused on economic viability concerning repair.