Vehicles are officially considered total when the overall cost to repair it is far greater compared to the actual worth of the car. Taking that into account, cars that fit the bill are called ‘salvage’ so don’t expect to receive amazing discounts as a buyer or an incredibly high salvage value; the numbers just won’t add up.
However, the main concern of buyers is the fact that the car will be branded as ‘salvaged’ since the car’s value will definitely drop below the actual worth once given the title. Imagine sweat equity where you work, worry, find, troubleshoot, ensure and fix a salvage auto and you pay for all the work through savings on the sticker price of typical cars. What else has to be taken into account as the junk car is being evaluated?
Finding the Exact Damage of the Car
Being involved in unfortunate events like crashes are the main reason why cars, trucks and other vehicles receive the label ‘salvage’. Damages sustained in fire and floods are also considered as salvage in a number of states. Keep in mind that flood and fire salvages are a tricky business because parts that look to be working can and will fail from time to time; it’s challenging to predict what exactly the vehicles needs in repairs to return to working condition.
Take note that in crashes, there are damages that are considered ‘good’ and ‘bad.’ First of all, determine the rating of the vehicle’s damage; the lower the letter in the alphabet, the better. So ratings go like this: A is outright terrible, B is difficult while C and D are workable damage. As much as possible, go for damages on the body or, worst case scenario, the working parts. Avoid bent frames despite how good the appearance of the car may be because there’s a high chance that it will create problems in the future.
Details on the Purchase
As you’re looking for salvage vehicles, some of the factors to consider are warranty, registrations, insurance, claims, financing, resale and claims.
The insurance that one can get for salvage cars depends on the insurer and the state, but expect the least liability insurance packages from the majority of insurers and states. Despite the fact that warranties on some level are offered by dealers with regards to salvage vehicles, don’t get your hopes too high. Registration also varies from one state to the next, like in some states police officers are assigned to inspect vehicles branded as salvage before it’s officially registered and driven on the road. In the unfortunate event in which you ended up involved in an accident and wreck the salvage vehicles, it was great that you found an insurance provider that covered the said vehicle. Despite the coverage, don’t expect to claim over 80% of the vehicle’s listed value.