Cars are basically considered totaled only when the expense for repairs costs way more than the value 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.
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. It’s kind of like sweat equity where one puts a lot of work on finding the car, testing, ensuring and fixing everything; you’ll pay for almost everything in the form of saving on the sticker of a regular car. So what else should be considered during the evaluation?
Establishing the Exact Damage
Being involved in unfortunate events like crashes are the main reason why cars, trucks and other vehicles receive the label ‘salvage’. 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.
Similarly, there are crash damages labeled as ‘good’ and ‘bad.’ First step, know the rating of the vehicle’s damage; in this case, the lower the letter in the alphabet the better. Basically A is the worst score, B is outright bad too but C and D are generally considered as 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 Regarding the Purchase
As you’re looking for salvage vehicles, some of the factors to consider are warranty, registrations, insurance, claims, financing, resale and claims.
Insuring a salvage vehicles varies depending on the state and insurance provider but do expect to qualify for the least liability insurance for the majority of states and companies. Sure there may be a couple of dealers that provide warranties of sort on salvage vehicles, don’t expect the best though. Every state has their own rules, terms and policies when registering salvage vehicles; in some states, a police officer is the only authorized person to inspect vehicles branded as salvage before it can finally be registered and driven. If the car sustains considerable damage due to accidents, then it’s a great thing that you had it insured under comprehensive coverages. Even with the package, it’s unlikely that you’ll receive more than 80% of the listed value.