Vehicles are officially considered total when the overall cost to repair it is far greater compared to the actual worth 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.
But a fear on the part of the buyers is that, since the car is given the title salvage, the actual price of the car might likely drop below the actual worth. 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
One of the most common reason why cars, trucks and other vehicles become labeled ‘salvage’ is because they were involved in crashes and sustained considerable damage. Damages sustained in fire and floods are also considered as salvage in a number of states. But do take note that these kinds of damages can be tricky since parts that seem alright can and may fail, it’s difficult to specifically determine what the vehicles needs repaired in order to be returned 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. 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. Keep away from vehicles with bent frames, even though it may look great it can buy you a one-way ticket to problems down the road.
Details on the Purchase
Just some of the things you want to consider in a junk car are the insurance, financing, resale, registration, warranty and resale.
When applying for insurance on salvage vehicles, packages and coverage will depend on the state and the insurer but expect to qualify for the least liability packages. Despite the fact that warranties on some level are offered by dealers with regards to salvage vehicles, don’t get your hopes too high. 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. 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. Despite the coverage, don’t expect to claim over 80% of the vehicle’s listed value.