If you don’t know what it means for a vehicle to be considered “salvaged”, this is when a vehicle has suffered damage that the insurance company estimates was too great relative to its value. While this is the definition on paper, in reality, this is not entirely true. Insurance companies often use fuzzy math to determine value and repair costs, and you could find some gems out there if you’re savvy. However, you need some experience with those types of vehicles and know what to look for. Here are a few tips for people thinking of buying a salvaged vehicle.
Assess the Damage
You first have to assess what type of damage the vehicle has suffered. It would be wise to bring a mechanic or someone who knows mechanics with you if you have limited knowledge.
In most cases, I would advise that you avoid vehicles that have suffered major motor or transmission damage. These parts are some of the most expensive on any vehicle, and unless you know someone who has a cheap transmission or you already have one on hand for that vehicle, I would stay away from those. If it’s flood damage, the vehicle might look intact, but water could have infiltrated very important mechanical parts of the vehicle and ruined them.
Another thing you should ask is whether the airbags were deployed. This might seem like a small detail, but fixing airbags can cost a lot of money. If the car has suffered some external damage with little mechanical damage, and the air bags weren’t deployed, then you might have a deal on your hands depending on the value and demand for the vehicle if you’re intending to resell it.
Know Which Types of Vehicles to Buy
Some vehicles are usually better deals than others. More recent vehicles will usually cost more to repair, and when these types of vehicles are considered totaled, it’s often because the vehicle has suffered significant damage. But on older vehicles, damage can be minor and the insurance company might decide to total the vehicle because of its low estimated value. However, estimation often doesn’t reflect market realities and these could be a good deal depending on your particular market.
Get Friendly with an Auto Body Mechanic
If you’re intending to buy salvaged vehicles for resale, it would be wise to befriend an auto body mechanic in the area. Places like Tampa, for instance, are hot spots for salvaged vehicles, so it would be wise to start looking for a reputable Tampa auto body shop before you start buying.
Often, they will be able to tell you right away if a vehicle is worth it and will give you a fair estimate. Some will even help you with things like transport if you’re thinking of buying at auctions. Also, you’ll start getting more favorable deals as you start bringing them business, which could eventually make a big difference on your bottom line.
Salvaged vehicles can be a great way to make money or get your hands on a good vehicle for less. Just make sure that you know what you’re doing and follow these few tips if you want to get the best deal for your money.
