In a weakened economy, where everyone is trying to save money, buying salvage cars is an attractive option.  However, there are some issues that you need to be aware of when looking at salvage title cars.  Here are just a few:

The Pros of Buying Salvage Cars:

• They’re cheaper by approximately 20-30% more than used cars.
• The lower purchase price means your monthly loan payments and interest rate will be lower.
• The insurance policy will cost less because the actual value of a salvaged vehicle is lower.
• You cut out the middleman and don’t have to withstand a used car salesman’s aggressive pitch.  In addition, your purchase price doesn’t include the commission that would go to that salesman.
• They are a better deal for international exporters because the parts for salvage cars are cheaper overseas, which means lower repair costs.

The Cons of Buying Salvage Cars:

• Not all insurance coverage is available because the rules for salvage title cars vary by state.  For example, liability is usually offered, but not all insurers are willing to extend collision and comprehensive coverage.
• Most lenders are reluctant to approve loans for buying salvage cars.  This might happen in states that use salvage titles to identify stolen vehicles.
• Some salvage cars have not been adequately repaired or have suffered flood damage that is almost impossible to correct.

How can you protect yourself when buying a salvage car?  First, do your homework.  Look for the VIN and then run a Vehicle History Report (VHR).  Next, find a reputable and experienced mechanic to go over every square inch of the car that’s caught your eye.  Finally, verify the paperwork associated with the salvage car, especially the bill of sale and the certificate of title.

For more information on the ins and outs of buying salvage cars, contact Salvage World. With the largest inventory in the industry and a solid record for customer satisfactions, we’re your best source for finding the right car at the right price.

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