Is buying a salvage car a good idea?

 

Should you buy a salvage car?

 
There is a common misconception that if you buy a salvage car you’re going to end up with a vehicle that’s two different cars welded together which is a death trap, and you’ll have wasted thousands of pounds buying something that is only fit for the scrapper. Online car buying forums are split, for every post that says ‘walk away’ there’ll be another that claims ‘they are great value for money’. Bottom line is do your research, do your sums, and buy the right car for you at the right price and you’ll end up with a good value car.

Look for light damage vehicles. Many Cat D cars have non-structural light damage that is economic to repair, but the insurers have decided not to. In some cases this may be because the car was stolen and recovered and they have already paid out on a claim. Or the parts required to repair the vehicle take time to find which prevents a quick repair. At the end of the day all cars depreciate to zero so it makes sense to start as low as possible.


What should you beware of when buying a salvage car?


In short, the same as buying any vehicle however if the car you are looking at was previously damaged and repaired, pay close attention to the panels on the car. Do they all line up properly? Are the gaps on the front end equal on all sides? Do the doors open and shut properly? Open the bonnet; are there any signs of damage anywhere inside the engine bay? Do the strut towers look like they have been fixed or do they look original? If it was previously stolen and recovered there is usually little damage, and typically these are some of the best salvage cars to buy. If the car was involved in a previous flood, check the cigarette lighter and make sure there is no rust inside of it. This ensures the water level was low and probably did little damage.

The advantage of buying from an online auction site like UK Car Salvage Auctions is that you already know that you’re looking at a salvage car, and what damage there is to be repaired or has already been repaired. You are not looking at a vehicle that is pretending to be something it isn’t.


What is the re-sell value of a salvage car?


Another common misconception is that you’ll lose a lot of money when you come to re-sell a salvage car, or in a worst case won’t be able to re-sell it at all. Bear in mind your motivation for buying a salvage car in the first place – to save money – and that motivation will exist in others, especially in the current economic crisis. Your market for selling will certainly be smaller than selling a non-salvage car but there is a market.

Bear in mind what you paid for it to begin with, if you saved 30% on a salvage car when you bought it, discount it 30% off of retail when you sell it. If someone can save money on a good car that runs and drives well then the problem is often solved. When you purchase a salvage title car, however, you must make sure you are not paying retail for it. If you do, when you go to re-sell the car you will lose money. As a rough guide go to Parkers and check the value of the vehicle without damage. Then deduct 30 % for Cat D salvage cars and deduct 50% for Cat C salvage cars.
 
 

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