Whether you want to save on car payments, lower your car insurance or get the maximum bang for your car buying buck purchasing salvage cars can help you save money.
Benefits
You’ll likely save a small fortune on car payments by going the salvage car route. Expect to make a cash payment because funding is virtually nonexistent in the salvage car world. Since the car being purchased has significant damages it makes little sense to set up a payment plan. Knowing this you’ll be paying no interest on a month to month basis.
Simply pay for the car in cash and you’re done. If you can’t afford an all cash deal you may be able to qualify for a signature loan.
Full coverage insurance is not typically an option for salvage car buyers. Insurance companies aren’t compelled to pay for any damages suffered in a salvage car if the accident is your fault. Purchase limited liability insurance to save money with the minimum insurance available. Limited liability insurance will cost roughly a third of the amount you’d pay for full coverage on the same car.
Paying much less for a salvage car is the chief benefit compared to cars without salvage title. The trade off comes in the form of increased labor on your part. If you are okay with getting your hands dirty to fix up the ride going with a salvage car can save you a significant amount of money.
Where to Shop
Search offline and online auto salvage auctions for the greatest variety of salvage cars. Find a buying agent to accompany you to an offline auction. These agents are professionals who have a keen eye for spotting potential at the auction. Buying agents can share insight about salvage cars of certain makes and models. Agents can assist you in assessing damage, helping you to either find bargains or steer clear of sellers who are trying to pull a fast one on you.
Scour the internet to find online salvage auctions. Visit salvage forums and social media groups to meet up with car enthusiasts who can point you in the right direction.
Family or friends who’ve been involved in accidents may have a salvage car for you to purchase. Inquire into their circumstances. If their insurance company wants to total the automobile maybe you can buy the vehicle on the cheap.
If the car has been totaled the insurance company will generally allow the owner to buy the ride back at a heavily discounted price. You can transfer the ownership of the car and have a new title made once the car has been bought back.
Junkyards and repair shops are another potential goldmine for the salvage car shopper. You can scour through lots of salvage title cars to find an automobile which fits your needs. Look for a set price and potential. Since nobody can outbid you in this setting as they could at an auction this may be a good option for a salvage buyer on a tight budget.