Is it worth buying a vehicle with a salvage title?
That’s a common question for people who are actively looking for ways to save money before purchasing a used car.
If you are thinking about purchasing a used car, you are not alone. In fact, Americans purchased 38.5 million used cars in 2016.
However, used car buyers are struggling with finding a good car for a good price today.
That situation has led many to consider purchasing a salvage title vehicle. Find out whether salvage title vehicles are your best option.
What’s exactly a salvage title car?
At its simplest, a salvage car is a vehicle with a salvage title.
A salvage title means that your vehicle has a calculating damage that exceeds its repair value, or it could be that your insurer listed it as a total loss because of damage or theft.
In most cases, you auto insurance company will cut you a check for the actual fair value of your totaled car, get the title of your vehicle, and take it to a salvage yard following the regulations of your local state.
It happens sometimes that you could spot a salvage title vehicle in a very good condition at first glance.
But, is it really your best option?
It’s always ideal to get more information about local state laws and salvage vehicles before forking out your dollars for a used car.
For example, the State of Florida subjects the salvage title designation to whether the auto insurance company declares a vehicle a total loss.
It normally rates between 50% or 95% of the vehicle’s value and changes from insurer to insurer.
Are you planning to drive a salvage title car for a short or long time?
Once you pin down that you can legally drive a salvage car in your local State, think of how long you are planning to keep that vehicle for.
No matter how easy it was for you to spot a great deal for your used vehicle, you are going to have a hard time trying to sell it.
If you are planning to get another car in the long term, then you’ll be able to get your money’s worth. However, getting a salvage vehicle to sell it over the short term could turn out to be expensive.
What are the benefits of owning a salvage title vehicle?
The best reason people buy salvage title cars has to do with budget. You’ll end up paying an extremely low price for your vehicle.
It’s very affordable compared to any other standard used car of the same make and model.
At the same time, it’s cheap to find auto parts for your vehicle whenever it needs to go through immediate repair and maintenance.
Remember that you’ll be responsible for determining adequate condition and functionality of the parts before purchase.
What are the disadvantages of owning a salvage title vehicle?
You need to be prepared for the hassle when it comes to finding an auto insurance policy.
Many auto insurance companies reject certain policies on rebuilt salvage vehicles and you should be ready to cope with the pressure.
Simply, if you are involved in a car accident, it would almost be impossible for an insurer to put together the damage of your recent accident and the damage left over from the old damage.
You could easily get a rejection or an expensive premium to say the least.
Don’t exclude the repairing price neither. While you may be the lucky buyer getting a great deal for a salvage car, the price for repairing it could be expensive.
Be cautious. Take the car to the mechanic to evaluate whether the salvage vehicle is worth buying.
Remember that at the end of the day your salvage car will always be tagged as a salvage vehicle.
No matter how much you try to fix it and make it look brand new, your car will never get the value that any other non-salvage title vehicle would.
Call to action
Give it a thought. See what works best for you. Whether you want to buy a salvage title car depends on how much time and money you are planning to invest on that vehicle.
It’s all up to you.