It’s not difficult to understand why damaged car auctions are becoming so popular. More consumers are interested in buying a wrecked vehicle than ever before. That’s because purchasing a damaged vehicle is a perfect way to save some money. Many damaged, inoperable vehicles can be restored and have a long life. Just because a vehicle is deemed “damaged” doesn’t mean it’s worth nothing.
Junk car dealers and auction companies are now selling a wider range of scrap cars than ever before. They have vehicles with far less damage than most people associate with that type of seller. This is a product of a sequence of events. A car is wrecked or damaged. Repairing it is labor-intensive and costly. The insurance company decides it is not worth the cost of repair and ‘totals’ it. Insurance companies are totaling and writing off completely reparable cars. These cars are then either sold at auction to someone that can repair them, or to a company who can repair them to sell.
Another sequence of events again involves the high cost of repairing a damaged car. In a situation where the car owner does not have insurance that would pay for repairing the damage to their car, the owner may decide it is too expensive to fix. The cost may be more than the car is worth. Or it may cost less to purchase another car. This owner can contact a junk car dealer who will offer them cash on the spot to buy and remove the car. The junk car dealer has the resources to repair the car. They can then sell it to someone who will enjoy it for years to come.
PURCHASING FROM INSURANCE COMPANIES
Damaged cars are often sold directly from insurance agencies. This is an opportunity to purchase a car at a percentage of its initial cost. It is essential however, to consider what kind of damage the car has incurred before purchasing a broken, damaged car. Some vehicles can be fixed, while others cannot. Be realistic when making the decision about whether or not the car can be made roadworthy. Additionally, carefully check all documents, and visit the car in person for inspection whenever possible.
PURCHASING FROM JUNK CAR DEALERS
When purchasing a damaged car from a junk car dealer, most likely the car will have already been repaired. Make sure to learn what was wrong with the car before it was repaired – learn the car’s history, its collision background, and what maintenance has been done over the years. The vehicle’s VIN is what you need to review the car for yourself.
If a car’s price is too good to be true, think twice. Never yield to quick impulses. It’s probably not as good a deal as it seems. If there are doubts, pay for a mechanic to take a look. More than a few vehicles damaged by collisions mask disturbing issues that can cause loads of problems down the road. Since these cars are sold as ‘salvage’, it is perfectly legal for sellers to sell them, so it is your responsibility to scrutinize what you are purchasing.
ITEMS TO KEEP IN MIND WHEN BUYING A DAMAGED CAR
In addition to learning about the car’s history, especially in regards to collisions, consider the following tips:
Make sure your insurance company will cover the car for a reasonable price. Some insurance companies will not insure a recovered car and if they do, it may be expensive.
If you are using a licensed dealer’s services, they will charge a commission. It may be worthwhile even so, since they will help you find a good car and you can learn about purchasing damaged cars in the process.
Purchasing damaged cars has gained the attention of drivers all around the country. What was once a risky venture has developed into a multi-billion dollar industry and is growing. Bellinger & Son Wrecker Service pays cash for junk cars that they then repair and sell. Contact us to learn more about selling an old car and our other services.