Wednesday, July 9, 2014

Things to consider before buying a salvage vehicle

Consider this: Your collision damaged Honda Accord that once used to be a prized possession for you has secured a place in a salvage yard. Not that you wanted to get rid of it, but the astronomical repair cost that the mechanic suggested, made you take this decision. Even the insurer estimated that the repair cost would be much more than the cost of the vehicle itself. This was your first car and you were emotionally attached to it. However, you dumped the car at a salvage yard and try to recover as much as money as possible, from the totaled car.

After you buy your brand new car, you forget about the older one. But one day when you see your previous car parked at your neighbor’s driveway, you are puzzled. Thanks to online salvage auctions, your neighbor bought your car and got it repaired. The damages were not as bad as you thought. He wanted to buy a second car for his personal use and did not have a big budget; therefore he went for a salvage car from an online salvage auction website.

If you ask your neighbor to list the factors he considered before going ahead with his purchase, he would point out the following:
  • Insurance: Insurance policies regarding the salvage cars vary from state to state and also from one insurer to the other. All insurers still give you liability insurance, irrespective of your state.

  • Registration: Just like insurance, registration rules also differ by state. While in some states, a car gets registered only after a police inspection, in others, a certificate by the repair shop is necessary. The state's Department of Motor Vehicles would give all the relevant details.

  • Warranty: While it is a fact that there is no warranty on salvage vehicles, some repair shops offer it.

  • Financing: You must not expect any finance on salvage vehicles. You would have to pay the whole amount in cash.

Impressed by his research and knowledge, you would definitely want to go for a salvage car, whenever you think of buying a second car.



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