Salvage title

I am going to bet the dealer is telling the truth. Travel trailers that are a few years old aren't worth that much to begin with. It wouldn't take much damage for the repairs to run over the 50% threshold many insurance companies use to total a vehicle. The insurance company would much rather write the check to the owner and sell the carcass at salvage and wash their hands of the thing instead of getting involved in a repair that very well might mushroom as the repair company starts it work. Unlike a car or truck, there is literally no telling what runs where in many travel trailers. A bent bumper might also destroy the water and waste system. A smack in the side might have fried all the wiring in the rig and no one would be the wiser until they got deep into the repair. Therefore, it is likely there are lightly damaged rigs available at salvage, all it takes is someone willing to take a chance that it will cost S1,000, not $10,000 to fix it.
Also, buying a rig and reconditioning it to sell allows the dealer to use salvage parts, parts that were not standard on the original rig and use their imagination to possibly change the configuration to something more economical to repair. If it was being repaired to go back to the original owner, different style and color interiors, exteriors, furniture, fixtures, appliances and the like would not be acceptable.