I bought a salvage 1998 E320 when it was 3 years old, still have the car. In our case, resale is never an issue since by the time we give up a car it is very well used and salvage, rebuilt, or not, it is of little issue.

With that said, it is not for everybody. I applied for the rebuilt title and did all the paper work, etc. and it took some effort. Also, there were some unexpected items, but since I fixed them myself it was not much $$

After driving the car for 7 years it has turned out just fine as an investment (not that cars are ever investments)