What is a Salvaged Car and Should I Avoid Them?
A Salvage Title Can Carry Problems
As careful as you are on the road, sometimes, through no fault of your own, accidents can and will happen. If you’re lucky, your car won’t even show any noticeable sign that you were in an accident. But on the extreme side, the accident can be so severe that the damage to your car is almost irreparable, and your insurance company will simply decide to call it quits, deeming your car ‘salvaged’.
If you still want it fixed, you can have it repaired. And Big Sky Collision Center will do the best auto body work in Billings. But your car will end up with a salvage title.
What is a Salvaged Car?
Simply put, a car is deemed as ‘salvaged’ when the cost to have it repaired is worth more than what the car’s current value is. This poses a problem to the owner because it means that the insurance company will take possession of the vehicle, and the owner will need to buy a replacement for it. And that will require a major cash outlay, of course, especially because you may end up having to spend quite a bit more than the insurance company is willing to give for your vehicle in order to get a suitable replacement.
On the other side of the coin, a car with a salvage title will also pose a problem to a potential buyer because not many will risk buying such.
The question is: are salvaged cars really as worthless as they sound and should potential buyers completely stay away from them? Believe it or not, the answer isn’t necessarily a resounding yes.
Is it safe to buy a Salvaged Car?
After a salvaged car is taken back by the insurance company, it’s typically either sold to a scrap yard, or sold to an auto shop or repair facility where it is fixed, rebuilt, and issued a salvage title.
Sometimes, the damage to the vehicle is more mechanical than cosmetic, meaning, it is the engine or some of its other moving parts that got destroyed. In this case, even after the repair has been done, it might not be such a good idea to opt for a salvaged car because it’s a bit like compromising your safety to save a few dollars.
There are also other times, however, when the damage to the vehicle is more cosmetic than mechanical. Even if it might cost a lot to have the car repaired and returned to its original appearance, in this case, purchasing such type of salvaged car might be an attractive option because you know that its engine and other critical parts are still intact or in the same optimal working condition.
What are the risks that come with buying a Salvaged Car?
Assuming that you bought a salvaged car because the major damage to it was cosmetic and not mechanical, you still face a few challenges after the purchase.
For starters, you’ll have a hard time finding an insurance provider because not many companies will insure a salvaged car. When you do find an insurance provider and you happen to get into an accident, you can’t expect a high payout value for your car.
Second, if the time comes that you want to sell your salvaged car, you will likely have a difficult time selling it. Dealers are unlikely to accept it as a trade-in, which means it will have to be a private sale.
Third, your car’s value is low to begin with. So when you sell it, its value will be even lower.
Even if you repair the body of the car, that “salvage” brand on the title can severely diminish the resale value.
So, Should you Buy a Salvaged Car?
The answer depends on why you need it, what is wrong, and will it be repaired. If you want a mechanically sound vehicle that has body distress so you can practice your repair skills, then a salvaged vehicle is great for you! If you want something that will be safe on the road and not cause problems in the future, well you might want to skip it.
Big Sky Collision Center is your source for the best auto body repair in Billings. From major body work, to a new paint job, to a complete auto detailing, give us a call to see how we can help you.