Salvage Title Vehicles

Did you come across an interesting Jaguar model for sale? Are you astonished by the car’s rock bottom price? Well, the sound of a late Jaguar model at an affordable price will appear amazing. The photos may seem spotless and the overall mileage driven by the car will be low. But, all these benefits come at a cost or with several terms & conditions – The Jaguar will have a salvage title. The car’s original owner will tell you that all the damages are cosmetic and there are no internal or structural problems. In such situations, what should you do?

What is a Salvage Title Vehicle?

If a car is stolen, damaged under extreme weather conditions, or been in a severe accident, the repairs will cost you more than the car. There are high chances of the affordable car insurance totaling the damages and taking possession of the vehicle. Insurers have the freedom to sell these cars to rebuilders or salvage yards. In some cases, amazing cars can get new brand titles. However, a bad storm can introduce cosmetic damages that are worth a thousand dollars. You must spend a considerable amount of money to repair the old car and get it running again.

Unable to Finance the Vehicle? Unable to insure it?

Salvage titled cars cannot be fully financed or insured. You will not be allowed to buy different types of insurance policies. In fact, there are very few car insurance service providers to fund you. Some car insurance companies offer comprehensive or collision coverage on salvage-titled vehicles. Few others, offer only liability coverage. According to a reputed car insurance advisor, the process of insuring your salvage-titled vehicle will be a “massive” challenge. There are so many terms and conditions on how the vehicles can be insured. In fact, it is very difficult to place a value on the salvage-titled vehicles.

On the other hand, it can be very difficult to finance your salvage-titled vehicle. If you want to buy a salvage-titled car, you must be prepared with liquid cash. If your car doesn’t have a comprehensive or a collision coverage policy, it will be very tough to find lenders. A functional salvage-titled car can cost you between 7500 and 25,000 USD! Are you prepared for this kind of money? If not, it would be unwise to buy salvage title cars.

Safety? Do Salvage Title Cars Promise Safety?

A major reason to avoid salvage titled vehicles would be safe. Reconditioned vehicles can be very dangerous. And, salvage-titled cars will be unreliable. A lot of rebuilders compromise on components like airbags. They remove several safety components to give the car a flat and re-usable look. As mentioned previously, salvage-title cars are bound to have structural problems. One should make a lot of internal changes to resolve structural concerns. A few years ago, a salvage titled vehicle was rebuilt with airbags that had paper towels! Wouldn’t this be a surprise to any buyer? Nearly 40% of the salvage title cars have airbags with stuffed paper bags and towels. It is very easy to miss these safety features. If you are planning to buy a salvage title car with salvage title insurance, you are definitely up for trouble. You will have a tough time driving the car in peace.

Talk about resale value? It is absolutely zero!

Do you plan to buy a salvage title car, drive it for a few months, and resell it for a better price? If yes, you will be up for some surprise. Salvage title cars cannot be resold. You will never find a buyer to invest in your salvage titled vehicle. According to a recent study, salvage title vehicles are priced lesser than cars that have never met with an accident. You cannot increase your price margin and sell the car at a better price. If you are dreaming of the car’s current market rates, you will never be satisfied. That is because no one is going to take a risk and buy your car! If you really want to sell your salvage title car, you must put it at a big discount. Well, you might become lucky.

The Joy in Keeping Your Salvage Title car forever?

Can you imagine owning a salvage-title car forever? Are you prepared to drive an old salvage title car without any insurance? A lot of people struggle hard to invest in salvage title vehicles. This makes it very difficult for them to scrape or sell the vehicle. In fact, they avail bank loans and live with hefty interests for decades. With all this in mind, it can be very difficult to buy another car or even sell the salvage-titled vehicle. On the other hand, you have very few buyers to discuss your problems with.

You can be cheated very easily!

As classy as it seems, the salvage-title car industry is a big scam. There are high risks of you buying a bad, faulty car! Meanwhile, your car’s title could be owned by someone else and you wouldn’t know about it. Doesn’t this sound scary? Title washing makes it very difficult to determine if your car was rebuilt or if had been in an accident. Title requirements differ from one state to another. This means, your car can get a clean title without any hassles or tussles. Even a salvage title vehicle with a clean title is worth several thousand dollars. A lot of shady rebuilders don’t worry about cross state borders for a clean vehicle title!

Few Important Tips to be remembered

If you are planning to buy a salvage title vehicle, you must engage in the following precautionary measures:

• Always hire a trusted and reputed mechanics to test your vehicle. The mechanic will give you a comprehensive insight into the vehicle’s history and mechanics.
• You must search for the vehicle’s history report. There are plenty of service providers to help you with this report. The history report will help you understand the car’s accident records.
• You must go through the state’s local salvage title laws. Remember, laws differ from one state to another. You should be clear with your state’s requirements and policies.
• The National Motor Vehicle Title System can help you combat title fraud. Search through the system for details on the vehicle’s title.
• Talk to several salvage title insurance service providers on how they can help you.

The Verdict

Buying a salvage title vehicle can be a very big risk. As potential buyers, you must be aware of all the risks involved. To play safe, try to avoid a salvage title car! Else, engage in intense background study.