By Alexo - May 23rd, 2012 06:05 AM
So you’ve done your research and have decided to buy a salvaged vehicle? If family and friends ask why, the obvious answer is that you’ll be saving money. Read on for more details!
The obvious answer, of course – Salvaged cars are cheaper. How much cheaper? Oh, about 20 or 30 cents to the dollar that a used car costs. Even when you factor in repair costs, the total price is much less than that of a used car that is the same model and make.
Lower cost equals lower sales tax – Vehicle sales tax can be calculated a variety of ways. One way is based on the total purchase price of a new or used car. If you’re paying less for a salvaged car, then your sales tax will also be less. Be aware, though, that each state sets its own standard for calculation. Contact your local DMV for more information.
A lower cost also means a lower loan amount – Your monthly loan payments will be less, which also means that you’ll be paying a lower interest rate.
Lower insurance rates – Since the actual value of a salvaged car is lower than one with a clear title, your insurance policy will cost less. Be aware, however, that insurance companies might offer limited coverage for salvaged cars. Check with your insurance company as to what coverage is available. This will vary by state, due in part to each state using different titles for salvaged vehicles.
Less money spent at the DMV – Yearly registration fees are less than those of a non-salvaged car, and transfer fees are often less, too. Again, check with your local DMV.
Cutting out the middleman – When you purchase a salvaged car, you aren’t pressured by a used car salesman. In addition, your purchase price doesn’t include the commission that would go to that salesman. When you go through a salvaged vehicle broker, such as Salvage World, you’re working with professionals who are serious about customer satisfaction. They do the hard work of finding quality salvaged vehicles and clean title repairables, which means that you can purchase directly from the source.
Better export value – For an international exporter, salvage cars are a better deal because the parts for them are cheaper overseas which means significantly lower repair costs.
Once you’ve crunched the numbers, you’ll see why salvaged vehicle purchases make sense!
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