Ordinarily if someone had suggested to you to consider buying a salvaged car, you would have possibly cringed and shuddered at the very thought of something so completely outrageous. However, if you can detach your feeling of horror for some time, and try and discover the amazing savings that are possible, you would surely be asking for more information.
What Is a Car with a Salvage Title?
When a car is written off or totaled (short for total loss) by the insurance company, it means that the insurance company will pay out to the customer the full value of the vehicle and not for repairs, since the extent of damage incurred is estimated to be very large, and more than what the vehicle is worth. Usually, cars get written off if they have been involved in severe accidents but this can also happen if the car in involved in a flood, fire, storm or even if it is stolen and not recovered within three to four weeks. To the insurance company totaling the car represents the least-cost alternative. Effectively they purchase the car so the title passes to the company. If they decide to sell it, they need to do it under a salvage title, as it is called.
Why Consider Salvaged Cars At All?
To the uninitiated, buying salvaged cars for sale is kind of absurd; however knowledgeable people will recommend it simply because you can save a lot of money and get yourself a really good deal. A salvage title car, after it has been completely repaired, sells up to 40% less than a car without such a title. In real money terms, a used minivan that costs $15,000 would have a comparable alternative in a salvage title costing just $9,000, saving you a handsome $6,000. For those interested in saving real money that can be a pretty compelling argument.
When Do Such Cars Work Out For You
Before rushing headlong in buying a salvage title vehicle, you first need to ascertain whether the state you live in permits these types of cars on the roads. If it does, then you can explore this great money-saving technique, if your profile matches the following:
You tend to keep your cars for a long time. If you purchased the vehicle for 60% of its value, then when you sell it you will be only able to get the same. Essentially, this means that if you retain the car for a longer time, your savings are better. It is not a good idea to try and sell the salvagedcar every couple of years because you will lose whatever you saved when buying. In any case, most dealers do not accept salvaged cars as trade-ins.
You will also gain by buying such cars if normally you buy old cars. This is because repairing costs of new cars and old cars are pretty much the same. If a new car has been totaled then you can be sure that the damage is extensive because it is quite valuable. However, for old cars to be written off it does not take too much of a damage. Even a minor dent can make it eligible to be totaled.
A Great Buy for the DIY Enthusiast
These cars work out the best for those who are not afraid to roll up their sleeves and get down to repairing it on their own. Because you can do the repairs without sending the car to the garage, your savings can be even more. Getting an idea of the cost of repairs will also enable you to negotiate the purchase price to your advantage.
Agreed, buying a salvage title car may not appeal to everybody, but it remains a great way of saving money for those who are not averse to old cars and then putting in a little amount of sweat to get the wheels rolling again.
Author bio: Rick Richardson is an auto enthusiast and a DIY car restorer. He has a passion for picking up salvaged cars for sale for refurbishing and selling them off for a good profit.