You’ve seen jaw-dropping deals on a vehicle and you thought “This is too good to be true?” Most likely. A lot of the rock bottom rates are salvage vehicles for sale that have been declared as a total loss to insurance firms due to damages, theft or other issues. However, here’s the truth: although they may appear clean from the outside there’s plenty taking place underneath the under the hood (literally and metaphorically).
What do you think are the most significant risks? Are you even considering buying one? Get ready to dive into the essentials you must learn before deciding on a salvage vehicle.
What Is a Salvage Vehicle?
A salvage automobile is a vehicle that has been damaged to the point severe that the expense for repair exceeds an amount that is a percentage of its value. Then it is time for insurance companies to “total” it, meaning they make the payment and acquire the car. They then issue the salvage title.
Types of Damage That Lead to a Salvage Title
All damage is not created in the same way. The salvage title may be derived from:
- Collision damage
- Flood damage
- Fire damage
- Recovery from theft
- Hail damage
Certain of them are fixable. Others? Maybe not so much.
The Illusion of Savings: Why the Low Price Tag Can Be Deceiving
A salvage vehicle may cost between 30% and 50 percentage less than a new clean-title car. However, don’t let that discount deceive you. This “great deal” could turn into a cash pit if you’re not vigilant.
Hidden Damage Is a Real Concern
Although the vehicle looks great, what happens to those things that you cannot be able to see? Consider bent frames, defective airbags, or damaged electronic systems. Some cosmetic repairs can mask some of the issues that lie beneath.
Safety Risks You Can’t Afford to Ignore
Let’s be real for a moment It’s important to be safe. If a salvage vehicle isn’t fixed correctly, it may become a danger to the public. Imagine it as an unrepaired parachute – you wouldn’t leap from a plane using one of those, would you?
Difficulty Getting Insurance
The process of insuring salvage vehicles isn’t the same as calling the local representative. Some companies don’t offer full insurance coverage. Certain companies won’t even insure you in any way. In the best case, you could receive liability insurance, assuming you’re able to pass an inspection.
Financing a Salvage Car? Good Luck
Looking to finance your automobile? The majority of lenders will not take used vehicles that are available for auction. So you’ll likely be with the cost of paying it out of your pocket. Make sure your savings account is set.
Low Resale Value
Think resale value doesn’t matter? This will be the case when it’s time to replace. Salvage cars are notoriously expensive for resales and value of trade-in. You’ll likely locate a buyer eager to purchase it from your hands.
Harder to Sell Later On
The majority of buyers wouldn’t look at a salvaged car. Even if the car has been repaired with a new paint job, the “salvage” label sticks like glue. The chances are you’ll need to price it at a low price to entice the attention of potential buyers.
Potential Legal and Title Issues
It all depends on where you live the process of titling your salvage car could be a tangled mess of bureaucratic procedures. Some states require thorough examinations, specialized paperwork, and even changing the name to “rebuilt.” It’s a complete procedure.
Parts Could Be Aftermarket or Stolen
It’s true that some salvaged vehicles are “rebuilt” using aftermarket or more likely, stolen parts. It could result in hot water with the law, or create a freaky car that’s difficult to keep.
Warranty? Forget About It
Do not expect a warranty on the salvage item you purchase. Many factory warranties end when a car is given the salvage tag. If anything breaks (and it could) it’s your own.
No Recourse if the Repair Job Was Shoddy
If you purchase an unsalvageable vehicle badly repaired, you have little of a recourse. Refunds are not available. No exchanges. The item was purchased as is.
How to Minimize the Risk If You Still Want One
Are you thinking of going salvage? OK, but think smart about the idea. Here’s a way to reduce your risk of being a victim:
- A professional examination with a reliable mechanic.
- Check the history of repair as well as photos (if there are any).
- Verify your VIN and the title status by contacting the local DMV.
- Do not drive in floods–they’re the most dangerous.
- Choose a trusted source that is not a sketchy backlot.
Why Some People Still Buy Salvage Cars
Don’t believe it There are a myriad of reasons why individuals still choose to buy salvage cars:
- Car lovers seeking project cars.
- Mechanics that can perform the repair themselves.
- Budget-conscious consumers are willing to take a risk.
For the typical driver? Risks are usually greater than rewards.
Conclusion: Think Twice Before You Chase That Bargain
The purchase of a used car may be a smart investment however, in the majority of cases the risk is. It’s a trade-off of short-term savings to longer-term headaches, and possibly security concerns. If you’re not an expert in mechanical engineering or do not have a reliable specialist on your side, it’s not worth taking the risk.
And if you’re daydreaming about a salvage GTR for sale, be especially cautious. High-performance vehicles with salvage titles can be even more tricky. It’s possible that they were pushed beyond their limits, damaged then reassembled to a degree that’s more display than actual.
FAQs
1. Do I have the right to operate an unregistered salvage car legally? However, only after it was inspected and subsequently issued an updated title from the state’s DMV. A salvage title that is plain means that it’s not roadworthy.
2. What can I do to determine the difference between a car with salvage titles?
Go through the history of the car (like Carfax or AutoCheck) as well as the title itself. Do not rely solely on what the seller has to say about.
3. Are all salvage vehicles unsafe are they?
Not always. A few are repaired and restored to near original state, however the majority aren’t. It’s all about a careful inspection, and understanding the risks involved.
4. Are there any advantages to buying salvage cars?
Perhaps if you’re a professional mechanic, purchase it for parts or at a huge discount without any ambiguity. In any other case, it’s an extremely risky investment.
5. What’s the difference between a salvage title and a rebuilt title?
A salvage title indicates that the vehicle is an absolute loss that is undrivable. A rebuilt title indicates that it was salvaged, but it was rehabilitated and was inspected by the state for road legality.
