Different companies value salvaged vehicles in different ways, but by looking at the details of the vehicle such as the retail cost and current market value, a good estimate becomes available. The insurance company also has a percentage that the car is measured against.Continue Reading
The details of the vehicle are typically checked first, including the make, model and type of vehicle. The retail value on the purchase dates and resources such as Kelley Blue Book may help to get this information.
In most cases when determining the value of a salvaged vehicle, 40 to 50 percent of the retail cost is the approximate value. However, this is typically just a ballpark figure. A junk yard owner may pay that or a bit less, but the actual damage needs to be accessed. In most cases, an insurance company only pays about 75 to 80 percent of the retail cost for a salvaged vehicle.
To get the current market value of a salvaged car, the retail cost can also be added to the appraised or estimated value from the insurance company, then divide that number in half. This gives the average rate when looking at the price. A person can also use the percentage of the depreciation to look at the current market value of a vehicle.Learn more about Buying & Selling