Gone are the days when visiting public auto auction sites was only one of the few options to bid and buy a car at affordable price. The Internet has opened up new ways for wishful car buyers including easy access to the salvage car market. Used and salvage car buyers, sellers, and dealers can now easily buy and sell through the virtual platform. You can get a plethora of options available with salvage cars auctions portals, where you can easily register online, bid, and buy salvage vehicles. In this brief post, we will learn some of the basics of the vehicles carrying a “salvage” title.
Decoding the Term “Salvage”
A vehicle is declared “salvage” if the insurance company decides it would cost more to repair the car, than its post repair market value. In such cases, they issue a payout to the owner of the damaged car, which is equal to its pre-accident market value, and sell the vehicle to a junkyard or an auction house, depending on its condition. According to auto experts, that there is a paradox prevalent in the salvage car market. Many a time, even marginally damaged cars are declared salvage. It seems sensible to the insurance companies to declare a car salvage in order to trim down their losses.
How Salvage Vehicles Reach the Auto Market
When an insurance company pays out the pre-accident value of the damaged car to its owner, it becomes their property. The insurance firm then registers the salvage vehicle with the DMV as salvage. Subsequently, they send the car to an auto junkyard. The junkyard may either dismantle the vehicle or sell it to an automobile dealer who resell it to an auction portal for public bidding.
Buying a Salvage Car
If you have already bought a salvage vehicle, you need to get the title removed from the DMV, to be able to drive it on the road. The DMV provides an approval to the salvage car only after it goes through a set of certifications and inspections. After you file an application for salvage title removal and change of ownership, you car has to go through a vehicle inspection and verification process.
Last Few Words
Buying a salvage vehicle can be a great investment, provided you know how to deal with its repair needs. If you get your salvage car repaired by a professional mechanic, it is likely to prove to be a wise investment. If you wish to bid on a salvage vehicle, make sure that it is registered and has all relevant documents. To get more information on salvage car auctions, you can visit the FAQ section of our website, or connect with one of our representatives.