Cars are basically considered totaled only when the expense for repairs costs way more than the value of the car. Taking that into account, cars that fit the bill are called ‘salvage’ so don’t expect to receive amazing discounts as a buyer or an incredibly high salvage value; the numbers just won’t add up.
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. Here are a couple of factors in evaluating your junk car:
Establishing the Exact Damage
The most common reason that cars and other vehicles become labeled as ‘salvage’ is the involvement in accidents like crashes. Damages sustained in fire and floods are also considered as salvage in a number of states. Salvaging vehicles that have been damaged in fires and floods can be a tricky business especially if you consider that certain parts can and do fail; it’s hard to predict the exact repairs that vehicles need when the damage was caused by floods and fires.
On the same note, there are ‘good’ as well as ‘bad’ crash damage. First off, know the categories in rating the sustained damage; you’ll want to target a lower letter in the alphabet. So ratings go like this: A is outright terrible, B is difficult while C and D are workable damage. If you have a choice, go for the ones with body damage or at least damage to the working parts. Don’t go for vehicles with bent frames despite how great it may look; it’s likely a one-way ticket to problems.
Details Regarding the Purchase
Just some of the things you want to consider in a junk car are the insurance, financing, resale, registration, warranty and resale.
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. Despite the fact that warranties on some level are offered by dealers with regards to salvage vehicles, don’t get your hopes too high. Registration also varies from one state to the next, like in some states police officers are assigned to inspect vehicles branded as salvage before it’s officially registered and driven 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. Even with the insurance covering the car, don’t expect to claim above 80% of the listed value.