A salvage title is awarded by an insurance company when a vehicle has been totaled. If a car has a salvage title, it can’t be driven in its current state. However, if you rebuild the car, you may be able to get a rebuilt title and drive the car on the road. As a result, many people look to buy and fix salvaged cars as a way to save money on their vehicle. This can result in paying much less for cars than purchasing them from a dealership pre-owned. However, while an insurance company is ultimately responsible for determining whether or not a vehicle receives a salvage title, you cannot buy a salvage car from an insurance company.
Finding a salvage car
Just because an insurance company can’t sell you a car with a salvage title doesn’t mean they can’t be helpful. Many times, insurance companies give salvage cars to an automotive auction business. If you are looking to buy back a specific salvaged car, an insurance company may be able to give you information about where they sent it. Then, you can go to an auto auction and bid on the car to try and purchase it. If you aren’t able to physically go to the location of the auto auction, you may still be able to bid on a car online, too, should the car you are interested in be out-of-state.
Bidding on a salvage car
If the car you’re interested in ends up in auction, there are a couple different strategies to consider as you enter the bidding process. The first thing to remember is the car’s Kelley Blue Book value. You want to make sure that you don’t bid more than what the car is worth, as the whole reason you are going the salvage route is to score a good deal. The second tip involves recognizing the psychological effect an auction has on many participants. Often, you may get tempted to increase your bid because you get caught up in the heat of the moment. Just because you may have a competitive spirit doesn’t mean that it will serve you well in an auction. You need to remember the car’s value and set your own maximum bid prior to entering the auction site. You may also need to pay a nominal security deposit in order to bid on a salvage car, so make sure that you budget for that in your bidding strategy, too.
Other ways to purchase a salvage car
In some cases, you may not even have to bid on the car since you can make an offer to the salvage yard before they list it. In these kinds of situations, it’s best to go to the owner of the salvage yard with a clear offer. Make sure to do your research on websites like Kelley Blue Book to back up your offer with facts. Knowing what repairs heavily worn and damaged vehicles needed can be a great way to leverage your research to make an offer to a salvage yard before you have to enter a bidding war to win the car.
While you won’t be able to buy a salvage car from insurance companies, they may be able to tell you where they sent the car. If the salvage yard it went to has yet to sell it, you could have a chance to make an offer before it goes to auction. Even if the car is put up for bidding, however, you’ll still have an opportunity to bid on it and make a purchase, thanks to online auctions. Just remember to research what the car’s true value is and make sure not to exceed your maximum bid. If you follow the steps above, you’ll be able to get a good deal on a vehicle, giving you the chance to repair it and get it back on the road.Updated Date: 23 August 2019, 03:46