When you are looking for a car and you have a limited budget, you may find that trying to find a car that fits within your budget is a tall order. Then, you discover a car that is listed as a "salvage title." These are cars that have sustained damage that is greater than the total value of the car. The insurance company decides that it is not economically beneficial to repair the car and instead advises to have the car declared a total loss. The insurance provider usually reimburses the policyholder for the value of the car. Under some circumstances, it is a good idea to purchase a salvage car. However, you must be knowledgeable about the risks as well.
Salvage cars are usually among the least expensive cars you can purchase. Sellers often cannot determine how much a salvage car is worth and will therefore sell them for a small fraction of what they might be worth, since Blue Book websites will often not evaluate them.
The Integrity Of The Frame
Cars have a frame that is designed to have a certain degree of integrity that ensures that the car can resist accidents and remains safe. However, once the car has suffered a degree of damage to where the frame is bent and compromised, there is nothing that can be done to return the frame to its original, safer state. Even for minor accidents, a salvaged car will not be able to handle the stress load in the same way as a car that isn't salvaged.
The Eligibility Of The Car
In some states, salvage cars are not eligible for registration and cannot be driven within the state. Not only will this prevent you from using the car, but you will be limited in where you can sell it.
Finding An Insurance Provider
It is very difficult to find a car insurance provider who will insure a salvage vehicle. If they do, it is likely that the cost to insure the car will be much higher. When an insurer does require that you pay a normal premium, it is likely that the insurer will not pay out as much in response to your car being totaled. These downsides do not mean that purchasing a salvaged car is always a bad idea, though, and you should strongly consider the price and make economic calculations before making a decision.
Talk to a car sale company like Woody Sander Ford to learn more.