Salvaged & Wrecked Cars: Is it Right for You to Invest in them?

Car shoppers are now becoming more cost-conscious than they have ever been. Instead of looking out for only good used cars, they are continually looking for an avenue to do the maximum savings – thanks to the stricter economy and the competitive market.

If you are also one of them and if you are also planning to buy a wrecked car, first revisit the pros and cons of salvaged vehicles.

A car which has been considerably damaged in an accident, or any natural calamities, and is estimated a total loss by the owner’s insurance company is titled as salvage cars. The insurance company pays off the owner and gets the title of the car. Now, the company wants to sell it off, and thus they are released at a much cheaper cost. These cars are readily available at most of the wrecking yard in Sydney. And you should consider that the cost of repairing the vehicle is comparatively less than purchasing a new car.

Advantages of purchasing salvaged cars

  • Price advantage

The most important and distinct advantage here: you can enjoy a price advantage and enjoy a lot of savings. Wrecked cars are comparatively cheap, and sometimes they sell for pennies on the dollar. 

If you have the sources to repair cars at low cost, purchase a wrecked car at dearth cheap price and use it as a run-to-the-store type of ride.

You might also find a salvaged car beneficial from the point of spare parts, and many times, car enthusiasts purchase salvaged cars just for that reason. 

So, either sell the spare parts for scrap metal recycling or repair the car and use it for your personal use.

  • You might be lucky

Most of the times, ensuring companies’ total vehicles when they are beyond repair after an accident. But, sometimes they might do it for different other reasons also. An insurer may agree to total a car if they realize the settlement cost is more significant and if they feel the need to control the pay-out that may get stopped from claiming others insurances like medical or property damage caused.

Or, if the insurance company decides without looking carefully enough at the damage of the car. 

In either of the cases, looking carefully through the salvaged car before purchasing it, might get you one of the excellent benefits – of a not so damaged vehicle at a reasonable price.

Disadvantages of purchasing salvaged cars

  • The salvage title is forever

Regardless of the repair and money you invest behind the car, a salvaged car will always be tagged as a salvaged car. And, it can be a big hassle if you want to resell it at any point in time.

  • Insurance companies

Insurance companies can pose real problems sometimes. When a car meets with an accident, insurers might take a lot of time to figure out if it is due to the current crash or if it is because of some prior damage in the car.

So if you are thinking to buy a salvaged car, find an insurance company who is ready to protect your car. And if you already own a vehicle, and this is your second or third one, speak to a reputable insurance company, as you are already dealing with them – it will be easier for you and you can trust them.

So, what should you do?

What matters primarily is the amount of time and money you are ready to invest, your level of comfort, and how minutely you can find out the details of the vehicle. You might get a very cheap car, but if you end up spending hours in searching for insurance providers, spend endless hours for repairing it, and in doing additional paperwork, think if you are ready for it?

The fact is you should set your expectations correct before investing in a salvaged car – if you have desired resources, then go for it, or else think twice before plunging!

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