Most people do not know what to do with a salvage vehicle or how much they can get for it. They do not know the approximate value of an asset like this. Salvage cars, trucks, motorcycles, and RVs are vehicles that have been damaged in an accident, vandalism, or other incidents, such as floods or hail, in which repairs would cost more than 75% of the vehicle’s market value. Although regulations different from area to area, when an insurer decides repairs will exceed this amount, they will label it as a complete loss. The vehicle will then be given a salvage title. This is an official indication that makes it difficult to get insurance on it. It, therefore, cannot be driven.
There are limitations to what can be done with a salvage car. In most cases, you cannot trade in a car that has been label as salvaged. Sometimes, a salvage car will be issued a “non-repairable vehicle title” by the DMV. This means that this vehicle must never be rebuilt, retitled, or reregistered, and is done for the safety of drivers. The option here is to destroy the car or sell it to a salvage yard for parts and components. The insurance company may make you an offer for the car, but it is generally not going to be a decent amount. Another option is to sell it to a junk car company who will pay to repair it, then sell it; Or they may sell off the parts individually. It is possible to remove a salvage title from a car, but the process is not easy… or cheap. In order to do that, it must be repaired and inspected, then the correct paperwork must be filed.
With all the considerations listed above, how do you figure out the best course of action. First, you can try to figure out what a good value would be for your particular car or vehicle. The way to begin valuing your specific vehicle will depend on the vehicle’s age, make and model, and of course, its condition. Other methods to decide on an approximate value is to do the following:
– Examine the retail and wholesale valuation of another car of this type using trusted resources, then divide the above valuation by two.
– Contact your insurance agent and find out what their figure is for ‘totaling’ a car; if it’s 75% as mentioned previously, you can calculate the fair market value based on their numbers.
– Get estimates for the cost of the repair and deduct that from the market value of the car. But know that in this case, the selling price will probably not be as much as is calculated due to the damage that’s now in the permanent history of the car.
Selling Your Vehicle To A Salvage Yard
Salvage yards purchase salvage vehicles for their components and parts. When you sell to a salvage yard, the identification and paperwork of your car must be provided to prove your vehicle is not stolen. You may also need to provide a description of the damage to the vehicle, since people will be buying its parts and they need to verify that they work. Savage yards do not care about the age of the car, so this is a decent option for a very old car. But you will not get much for your car from a salvage yard.
Selling To An End User
If you don’t want to sell your car to a salvage yard, you can find a private car dealer who is willing to pay you for the vehicle. This may be the case if your car has some vintage or novelty value, and they want to rebuild it. But this is not a likely option for most salvage cars.
Selling Your Salvage Car To A Junk Car Dealer
Needless to say, it is a challenge to sell salvaged vehicles. That’s why junk car companies are in high demand. They will purchase your salvage or junk car and pay you cash on the spot for it. They also will pick it up or arrange for towing to get it off your hands. In many cases, these companies have partnerships with mechanics that can make the necessary repairs in order to sell the car. They are an excellent option in most cases, since the cost, effort, and risk of getting the car in a reasonable condition to sell lies with them, not you. Basically, you can take the money and run, leaving the problems with the junk car dealer.