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How to Buy a Used Car With a Salvaged Title
Monday, September 21, 2009
InstructionsStep 1: Although there is no clear resource for salvage title vehicles, one can usually find such vehicles via the Internet . E-bay Motors, for example, allows you to customize your search for vehicles, including by title type. Choose "Salvage" or "Rebuilt" to search for vehicles with a salvage title. Other options, such as Cars.com or Autotrader.com, are likely have salvage listings available, but you will have to use appropriate keywords to find those listings.Step 2: Check the price of the vehicle to make sure it is in line with the market value. Unfortunately, there is no "book value" or standard deduction for salvaged vehicles. Kelley Blue Book estimates that salvaged vehicles are worth 20 to 40 percent less than similar non-salvaged vehicles, but the value is often in the eye of the beholder. It's recommended to get several professional value quotes from auto dealers or auto appraisers.Step 3: Have the vehicle thoroughly inspected by a mechanic you trust. While it may be difficult, it is recommended to find out how much damage the vehicle sustained, as well as what components were damaged or replaced. Frame damage is of particular concern, as it can compromise safety. Find out if the airbags were deployed; and if they were, find out if they were properly replaced. Make sure you understand the extent of the damage the vehicle sustained and the quality of the repairs that were performed.Step 4: Find a financing source for your salvage vehicle. Unless you are paying in cash, it may be difficult to purchase a salvaged vehicle with a typical auto loan. Most banks and finance companies are leery of loaning money for a vehicle with a salvage title, mostly because its resale value is difficult to determine.Step 5: Find an insurance company willing to insure your vehicle. Insurance companies, like banks and finance companies, tend to shy away from vehicles with salvage titles. The main concern of insurance companies is the vehicle's safety and value if it is damaged again. You may have to settle for liability insurance on your vehicle, as full coverage insurance will be difficult to acquire with a salvage title.
Tips & Warnings- Always check the price of a similar non-salvaged vehicle. Due to safety concerns, it may be best to steer clear of vehicles with a salvage title.
- Make sure you understand all of the risks when purchasing a vehicle with a salvage title.
Photo/Video Creditdoortoriver:flikr.com
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