Guide to Purchasing a Salvage Vehicle
Learn how to buy salvage vehicles effectively through auctions, including registration procedures, bidding options, pricing factors, and legal considerations. This guide helps buyers navigate the complexities of purchasing damaged or totaled cars safely and confidently.
Salvage vehicles can be found in various states of damage at salvage yards and are often available through auto auctions. Buyers interested in purchasing these vehicles should follow specific procedures to ensure a smooth transaction.
First, register with the auction house either online or in person. You are required to place a refundable deposit to participate in bidding, ensuring your serious intent. Make sure your registration includes your name or dealer ID.
Once registered, you can bid in different ways:
Submit bids via the auction website. The highest bid that meets the reserve price wins the vehicle.
Participate in live phone bidding by informing the sales team beforehand. They will notify you of upcoming auction dates and provide assistance during the bidding process.
If you prefer a straightforward purchase, some auctions offer a "Buy Now" option to purchase the vehicle instantly.
During an online auction, you'll need to deposit funds in your account and log in at auction time. Alternatively, you can request help from a sales agent to bid on your behalf.
There are over 170 auction houses offering approximately 40,000 salvage cars weekly, providing a diverse selection. Expert guidance and assistance are often available to help you make an informed decision.
The price of a salvage vehicle varies based on condition, mileage, extent of damage, repairs, and modifications. Market prices for similar vehicles, the vehicle's age, make, and model also influence the cost. New cars typically depreciate 30% to 60% within the first five years, affecting their resale value.
Insurance companies may classify some vehicles as total losses when repair costs surpass the vehicle’s market value. Damage types leading to a total loss include flood, hail, theft, vandalism, among others. Only the state DMV can issue a salvage title, which indicates the vehicle's prior damage status.
Vehicles with a salvage title often require special inspections before resale. Such vehicles are available to a limited group of buyers, and caution should be exercised when purchasing salvage cars.
