Salvage cars from insurance companies aren’t as risky a purchase as it sound, actually, it is a fairly common practice in various countries, especially USA and countries in the United Kingdom. Now, a vehicle with a salvage title implies that it is a car which repair cost exceeds it actual value and is declared a total loss by the insurance company.
There’s a trick to it, because the car doesn’t have to collide to receive a salvage title, there are other causes, like hail damage, flood damage and theft, three situations that may damage the vehicle’s integrity, but won’t necessarily render the car useless.
Now, if you’re on a tight budget, or you’re a college student, or you need a second car and want to save as much a possible, getting one of these cars could be the right choice, all you have to do is take certain precautions.
There’s three things you should do if you are willing to buy one of these cars:
- Have the car checked out by professionals: Mechanics, electric system, everything regarding the car’s performance should be double-checked just to make sure it’s a worthwhile purchase.
- Calculate Expenses: Most likely, you’re going to have to spend a little more money that the price of the car. For any minor/medium reparations, aesthetic tweaks and extra paperwork, make sure you have some extra dough for these cases. If the salvage title cause was a total loss because of the damage exceeding the vehicle’s worth, it’s not worth it.
- Only buy from trustworthy sellers: This is pretty self-explanatory. If a deal seems shady, it most likely is, don’t get in trouble or risk your money over a cheap car sale, you’re better off buying from insurance auctions directly or people you know are serious and responsible salesmen.
Of course, there are some disadvantages to buying these cars, like the fact that your insurance company compensation for them won’t be as high as that of a regular car, and that you won’t b e able to sell it or trade it in for as much if the car has a salvage title in its history, and that’s if they even decide to accept the vehicle, so these cars really are meant for you to keep them for as long as you can.
If you search properly, keep an eye out for opportunity and have some luck on your side, odds are you’ll find a car that’s in almost perfect condition at at least half its original value, make sure you don’t jump into a purchase just because the car looks nice and new on the outside, follow the advice we gave you and you should find a perfect ride at a discount in no time.
We’re interested in hearing about experiences with salvage title cars. If you’ve had one or are in the process of buying/restoring one, please share it with us in the comment section!