Vehicles are officially considered total when the overall cost to repair it is far greater compared to the actual worth of the car. These cars are also called ‘salvage’ and when all is said and done don’t get your hopes up; as a buyer it may not be the perfect car and as a seller the money you receive may not be as high as expected.
But a fear on the part of the buyers is that, since the car is given the title salvage, the actual price of the car might likely drop below the actual worth. 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
One of the most common reason why cars, trucks and other vehicles become labeled ‘salvage’ is because they were involved in crashes and sustained considerable damage. Though a couple of states also list fire and flood damage as salvage. 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.
On the same note, there are ‘good’ as well as ‘bad’ crash damage. First step, know the rating of the vehicle’s damage; in this case, 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. The golden rule is to go for the body damage or worst case damage to working parts. Keep away from vehicles with bent frames, even though it may look great it can buy you a one-way ticket to problems down the road.
The Purchase Details
Insurance, claims, registrations, resale, warranty and financing are just some of the factors to consider in junk cars.
When applying for insurance on salvage vehicles, packages and coverage will depend on the state and the insurer but expect to qualify for the least liability packages. Despite the fact that warranties on some level are offered by dealers with regards to salvage vehicles, don’t get your hopes too high. The laws, policies and terms of registering a salvage auto depends on the state; in some states police officers are given the responsibility to inspect vehicles branded as salvage before it gets registered and is allowed to be 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.