Wrong, the loan value of a salvage auto is 80%, meaning it does have some resale value, just not the same as a clear title.
You would be surprised how many cars out there are salvage title.
A lot of times, it may be minimal damage, but the insurance totals it out cause it cost more to fix than what they consider it to be worth.
http://www.foxbusiness.com/personal-finance/2011/06/03/5-reasons-to-avoid-salvage-title-cars/
"Most salvage title cars are priced at least 5% below market, which seems like a good deal. But in most cases the true value is much, much less. Consumer Reports calculates that a salvage-title car is worth 50% of its Kelley Blue Book value, at best."
If one has any intention of selling the car someday, then it never makes sense to buy it back with a salvage title.