The worst mistake you can make when buying a salvage car is not doing your research properly.
Checking the Repair Work: The first thing you need to do is to ask the car’s insurance company to give you an estimate of all the repairs done on the car. This will give you an idea of how extensive the damage to the car was and give you more leverage to negotiate.
Researching Lemon Laws: Lemon laws are regulations that protect a customer from buying a vehicle that has seen irreparable damage or does not meet the quality and safety standards required for it to be operated on the road. If a car is a lemon, it is refurbished and sold to auto manufacturers, which in turn sell them off to car dealerships or online car auctions.
Auto Financing: Banks or other traditional lenders are usually not willing to provide auto financing loans for cars that are more than five years old, let alone a car that has been labeled as salvage. That is why, if you want to buy a salvage car, you may need to do so with your own cash. However, some online car auctions also provide buyers with financing options that have better interest rates and a longer repayment date.
Finding the Cost of Repairs: Almost all salvage cars that you consider will require some repair if you want them to be functional and road safe. That is why you should also factor in the cost of repairs when you are considering the budget for the salvage car. Also, find out if you can afford the regular maintenance of the car.
There are some car makes and models that cost a lot of money to repair or maintain. However, other brands have quite a low maintenance cost since they have high crashworthiness — i.e. they are very durable and reliable and built to last a long time. Such quality brands include Toyota and Honda.
Also, remember that some types of damage warrant more costly repairs than others. For example, a car that only has cosmetic damage may be fixed easily and affordably; however, a car that has a fault in its internal components may require a lot of money to fix – if it is fixable in the first place.