Determining a Salvage Car Value
If you enjoy auto restoration or have recently totaled a car and need to know how much it’s worth, you are probably interested in salvage car values. Cars that are seriously damaged may still have some value, but it is only a fraction of what the car was worth before the damage. Cars that are repaired and sold after they have been seriously damaged have salvage car titles that state that the car was seriously damaged and later repaired. This protects buyers as they will know that the car was once seriously damaged and may have problems that cannot be fixed.
A salvage car value is usually about 50% of its average market value, but this can vary depending on the amount of damage and the type of sale, if it is being used as a trade in or sold to a private party. If you have a salvaged car, your insurance company will give you an estimate of how much it will cost to fix the vehicle, and if it is more than the vehicle is worth they will most likely consider it as a salvage car. You may still be able to use it as a trade it, especially if it runs, or be able to find a private party to buy it who specializes in restoration. Another option is to sell it for parts or to a junkyard, which is probably the most common option for salvaged cars.
Because salvage car values can vary with the amount of damage, buying a car with a salvage car title can be a great way to save money. You have to be careful, however, and make sure you know the history of the car and how well repairs were carried out. When a car is seriously damaged from an accident, flood, or theft, insurance companies will estimate the cost to fix the damage, and if it is too much will issue the car a salvage title to protect future buyers. Sometimes the damage is mainly cosmetic or can safely be repaired by an experienced body shop or mechanic. In this case the car will sell for less than the average market value, and can be a great deal for an experienced buyer who knows what to expect from this type of car.
You should have experience with salvage cars and determining salvage car values before you try to purchase one, however. The potential for savings is great, but there can be serious problems with the car that are not fixable. If the car has been in an accident for example, the frame might be bent which is almost impossible to fix. This can affect the wheel alignment and make driving dangerous. If the vehicle was in a flood, engine damage may not be apparent at first but cause major problems after you purchase the car. If you are looking to purchase a salvage car, make sure you get a complete history and have the car checked out by an experienced mechanic before you buy it. Sometimes salvage cars are a great deal, and other times they are a waste of money. A good way to find the car history is by requesting a Carfax report.
Copyright © 2008 Aziali