Buying a vehicle at a salvage car auction can save you a bundle of money, so the purchase is usually easy on the budget. Moreover, the process is simple enough to complete. Of course, you can make it even easier on yourself if you fully understand what you are getting into before you finalize the deal. Here are a few points you should understand before you buy your car from a salvage car auction.
What Does It Mean if the Car Is Salvaged?
A salvage title usually means the insurance company has decided it isn’t worth repairing the car for the vehicle owner. The car is retitled with a salvage title. It gets sold to a rebuilder who repairs it and puts it up for sale at a salvage car auction. Once the car has been repaired, it usually gets a restored salvage title.
Understanding Salvage Titles
Just because you buy your vehicle at a salvage car auction doesn’t mean that it was involved in an automobile accident, although that is the most common cause for this type of title. Several reasons exist for the issuance of a salvage title including vehicle damage due to an accident, biohazard, flooding, hailstorm, fire, or theft.
Most vehicle accidents result in some type of damage to the vehicle. When the cost to repair the car is nearly as much as the value of the vehicle, it is often sold to a salvage dealer and listed as repairable after damage.
Flooding damage to a vehicle ranges from minor to severe, and it isn’t always listed as the reason for a salvage title. In some states, the “general damage” category encompasses flood damage.
The damage from a severe hailstorm can be devastating, causing the broken glass, flat tires, and dented and/or broken parts on the vehicle’s exterior. Not all states identify hail as the reason behind a salvage title, but many do.
If the car has been involved in a fire, damages can be extensive. Repairs to the car depending on the type of damage that occurred.
In the case of theft, many insurers have already reimbursed the car owner for its value before the vehicle has been retrieved. As a result, the car is salvaged and receives its title accordingly.
Salvage Titles Vary by State
Each state uses its guidelines to determine which vehicles merit salvage titles, so it isn’t always simple to compare auction cars for sale across state lines. In most cases, it is important to check a list of repairs made to the salvage vehicle before considering it for purchase. Doing so gives you a better idea as to the vehicle’s overall condition as well as to the type of problems you might expect in the future.
Before you buy your next automobile at a salvage car auction, make sure you understand what a salvaged car is. You should also be aware that you might need to use a different car insurer than the one you currently have. Typically, you can save a lot of money buying this particular type of vehicle, making it an excellent idea, especially if you drive your car hard.