If you need a new car or just want a change, salvaged vehicles get you on the road for thousands of dollars less than clean title vehicles. These used cars have been declared salvage by an insurance company because the cost of repairs is greater than the car's value, but that doesn't mean that they are wrecked beyond repair. If you do your homework, you can make a smart investment by buying a salvage title vehicle instead of a clean title vehicle.
The most obvious pro to buying salvage title vehicles is the drastically reduced cost. Sold at car auctions or in salvage yards, these cars may cost as little as 20 to 30 cents on the dollar compared to clean title cars. If you are looking for a deal and do not mind putting in elbow grease, a salvage title car can be a great investment.
Not all salvage title vehicles are damaged beyond repair. Use a little math to determine if a salvage title car is worth your investment. Remember that cars get that title when an insurance company decides that the cost of repairs is greater than the car's value. If a car valued at $50,000 has a salvage title, that means that the repairs are estimated to be over $50,000. Imagine the damages that would have to occur to cost that much! It is probably not worth your effort or investment.
That does not mean that good deals are not out there. There are plenty of $5,000 cars with salvage titles that need little more than basic repairs after a fender bender. Those are the salvage title cars that are worth your investment.
The Two Car Strategy
You can continue to benefit from buying a salvage title car even after you make the purchase. If you have another, newer car at home, leave it in the garage and use your salvage car for the daily commute. You can keep premium costs down on the newer car by taking out pay-as-you-drive insurance and can keep mileage down on the vehicle so the odometer is low when it comes time to resell it.
Have you purchased a salvage title vehicle instead of a clean title vehicle? Did you find a diamond in the rough? Share your experience with us in the comment section below!
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