Buying a used car instead of a new one is usually a good option for getting a quality vehicle at a lower price. If you are trying to save even more money on your next vehicle purchase, consider buying a salvage title car.
A salvage title car is one that has been damaged in an accident and has been classified as totaled by the insurance company. The repair cost for most salvage title cars exceeds its value. According to Orthodox Auto Company, there are both pros and cons to buying a salvage car that you should consider before making a purchase.
Pros of Buying a Salvage Car
Low Price Tag
The most obvious reason for buying a salvage title car is the low cost. Compared to a clean-title car, the salvage title car costs much less. You can buy a salvage title car at an auction for almost half the price of a clean title car.
A salvage title car may be a great option if you want to save more money on a car purchase.
Salvage title cars are like Russian roulette. It is a game of luck, and you may end up with a fully functioning and road-worthy vehicle. In some cases, buyers may require little to no work done on the car to get it fully operational.
It is important to note that not all cars branded as salvage titles are extensively damaged. If you're lucky, you may land some great-performing cars requiring little to no tune-ups. In such cases, you'll have gotten a prized possession for a fraction of what it costs on the market.
Some people hunt for salvage title cars for their parts. Some salvage title vehicles have their parts intact. Buyers may strip these cars of those valuable parts to be re-sold on online marketplaces to interested used car parts buyers. This process is often rewarding, although it can be stressful and time-consuming.
Some people buy salvage title vehicles for refurbishment purposes. These buyers often repair the damaged salvage title cars, purchase a clean title for them, and list it for sale at a higher market value. This practice is similar to house flipping in the real estate world.
Essentially, buyers purchase salvage title cars for cheap, spend some money on making it roadworthy, and sell at a higher margin.
Cons of Buying a Salvage Car
Salvage title vehicles are like Russian roulette. There's a high chance that you're getting a damaged car requiring thousands of dollars to repair. Some salvage cars may not pass the initial safety tests even after being repaired and refurbished. Buying such vehicles puts you and other road users at risk of accidents and other dangers.
Salvage Title is Forever
Even if your salvage car has been repaired and fully restored, it will always have a salvage title. You could face issues selling your car in the future with a salvage title. Remember that buyers will often consider salvage title cars to be worth less. The salvage title may also scare buyers away.
Insurance companies like to crunch their numbers to calculate the risks they are taking on by insuring your property. For salvage title vehicles, the risk is higher than their reward. Most insurance companies won't insure salvage titles or rebuilt cars. If you find one that will, you may need to spend much more money on purchasing the insurance policy. You may also need to agree to a part insurance cover.
Buying a salvage title vehicle can be risky, but finding the right car could be a great deal. The used car experts at Orthodox Auto Company have a wide selection of salvage title cars, and they can help you find just what you are looking for. Contact us today at (215) 608-3270 or stop by our salvage yard anytime.