All You Want To Know About Salvage Auto Auction
To start with, if you are wondering what exactly is meant by a ‘salvage car’, think about the car that you lost or that got stolen. Ever wondered what might have happened to it after that? Well chances are that they got sold away as ‘salvage cars’. These are also vehicles belonging to companies like insurance companies that often buy used cars for selling them at profits. Here is a list of considerations you might take into account before making a salvage car purchase:
The Background of the vehicle
1. In most of the cases vehicles auctioned by the auto insurance companies, i.e. salvage cars are the ones that were reported as damaged, lost or stolen. In case of certain cars the owner gets the insurance money, and if the vehicle is recovered later, the insurance company gets to sell it away to recover some of the money paid to the owner.
The salvage car auction
2. One of the common ways of salvage car purchase is by auction. Dealers are the ones who conduct these car auctions, where cars from the insurance companies are auctioned. Often at the salvage auctions, the auction holder or the dealer first purchases these insurance company cars at much lower rates to finally sell them away to the general public at profits. The bidders at these auctions usually consist of car dealers and enthusiasts, besides others, hoping to buy inexpensive cars.
Junkyards and salvage yards
3. These are other places to buy salvage cars. Many a times it is seen that after a car has been recovered after say a theft and it is not in a position to be repaired well enough for a profitable sale. These are the cars that have very little scrap value. Such cars are usually sold at junkyards in parts instead of a complete whole.
Title of the car in case of salvage car USA and other countries
4. When you buy a salvage car, it does not necessarily imply that you get the rightful title of the car with it too. This does not mean that buying a salvage car is illegal, but it does mean that you have to make an extra effort to secure a guarantee of the rightful title. In case of most states, a sales receipt copy along with the VIN number of the vehicle is needed to ensure that the owner gets a legitimate title. So check these factors to secure the rightful legal ownership of your vehicle.
5. There is no guarantee at all that the story you were told about the salvage car was true, and you can thus never anticipate its future performance accordingly. For instance, you might have been told a story about how the car just managed to sustain a minor damage by water, when actually the car had been caught in severe flood. The ‘small electrical’ problems that you were warned about might just actually mean that it requires a complete change in the electrical system. Thus, get your car thoroughly examined.