Q:

What are some things to know when buying salvage cars at auction?

A:

Quick Answer

When buying salvage cars at an auction, it is important to know the selling price of the vehicle in question without needed repairs, as well as the cost of parts and labor to make any repairs. Understanding the total cost of the vehicle is the key to a sound investment.

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Full Answer

Buying vehicles from a salvage auction can allow an individual to obtain a variety of quality cars at a fraction of their cost, either new or used. When a driver gets in an accident, the insurance company evaluates his vehicle to assess the damage and determine how to respond to the claim. If the car has experienced sufficient damage that the insurance company decides to pay the driver to have it replaced, the car is placed into an auction to recoup some of the money spent. Each car placed into auction in this manner is labeled with a category that denotes the severity of its damage.

This rating system is important for determining how much money it may take to repair the vehicle. If a severely damaged car has a low price point when not damaged, it may not be worth it for an individual to buy it and pay for the repairs compared to simply buying the same model used.

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