That is what a junk yard receives when a vehicle is purchased at auction and only for being parted out, totaled insurance wrecks, or tow yard impounds. In some cases the vehicle is in good enough shape that with some repair it can be back on the road again so it is sold with a salvage title. When the vehicle is inspected(dmv) and once again registered a normal title will be issued.
ANSWER
The above answer is correct until the last sentence. When a car is in an accident, flooded or sometimes even stolen/recovered (things vary from state to state) and the repairs exceed 75% of the car's value it is totaled and issued a salvage title. Once a car is issued a salvage title it can not legally be driven again, only salvage/reconstructed or totaled/reconstructed depending on how your state looks at it. Unscrupulous sellers can always find an illegal/unethical away around this but since a reconstructed car(i.e. a salvage car that has been rebuilt to roadworthy standards) is worth 40% less than a comparable clean titled car, buyers need to beware and do their homework with Carfax, VIN and title number checks before they purchase any used car. Otherwise, they will pay too much for what they get. Salvage cars can sometimes be fine purchases, just pay the right price!