The pandemic has turned so many industries topsy-turvy, and the vehicle market is no exception. Because of obstacles like chip shortages and supply chain disruptions, new cars are harder to acquire. Some used cars are priced higher than their new counterparts.
In this car climate, you might be open to alternative shopping options for your next vehicle. Looking into salvage-title cars is an excellent alternative. Salvage-title is a misnomer, even though that’s the popular term. Unless you buy the car from an insurance auction or a salvage yard, you will likely shop for rebuilt titles.
Salvage-title simply means an insurance company declared the vehicle a total loss. They calculated the damages and cost of repair were more than the car was worth. This creates a great opportunity for mechanics or hobbyists to buy and flip the vehicle at a profit.
Because of the stigma of being “totaled,” the customer pool is smaller, and vehicles sell cheaper. You have a chance to get a great deal and a great car if you know what to watch out for. We’ll even discuss insuring a salvage title car. Here are 8 tips that will set you up for success when looking at salvaged vehicles.
#1–Don’t Buy Sight Unseen
Buying a salvage car can be a great deal. But sometimes, a deal is too good to be true. So the first rule of buying a salvage is to see it in person.
Fix it Yourself
The best way to buy a salvage-title vehicle is to buy from a salvage yard and do the repairs yourself. When you are in charge of the repairs performed and do the labor yourself, you stand to save the most money.
Buy From a Third Party
The other option is to buy an already rebuilt car. Find a seller with a good local reputation. Even then, you must see the car yourself, don’t take the seller’s word for it.
Have a Mechanic Look it Over
It’s worth paying a mechanic to examine the vehicle. A hundred dollars of investment can save you from a lemon.
#2–Find Out Where the Car Is From
If you travel a long distance, there is added pressure to make the trip worthwhile, and you might be hasty to overlook warning signs. But, traveling to see a salvage car can be worthwhile.
Total Loss Threshold
Insurance companies assign a lower threshold for totaling cars in different regions of the country. Because of the greater expense to repair cars in costly areas, it’s actually more cost-effective for the insurance company to total a vehicle. So, find out where the car was totaled.
Look for Non-Impact Salvages
The best salvages to look for are those without major collision history. Bodywork can be expensive, so even vandalism can warrant insurance “totaling” it. Some “totaled” vehicles are salvaged stolen cars that only have damage to the locks and ignition.
The less impact on the drivetrain, the better. The exception to this is flooded vehicles. In those cases, the damage is extensive and might not manifest immediately, even if everything looks good.
#3–Check the Car’s History
Thanks to the digital age, a wealth of information is a few clicks away. Car history is one such category of data that has been available online. So check the car’s history to get a picture of what kind of damage you’re dealing with.
Places like CarFax can give you an actual diagram of where the impact occurred and its severity. Information about airbag deployment is important too. Shady mechanics can shortcut airbag replacement. Damage to the chassis can cause long-term problems, so watch out.
#4–Check the Interior
Be observant when you check over the car’s interior. If you’re too busy envisioning car interior accessories you want to buy, you might miss some obvious warning signs.
Check Under the Floor Mats
Water damage is one peril that you want to avoid. It can be difficult to detect, but a quick check under the floor mats can tell a lot. Water damage can have some pretty nasty aftermath and is worth avoiding, even if it appears to be taken care of.
Check the Dashboard
Start the car and watch the dash lights. Make sure every bulb works. Once the lights cycle through their initial test, they should all turn off. Never take the seller’s “word for it” that it’s just a faulty sensor. Besides, sensors themselves can be expensive to replace.
Use the Seatbelts
Test out passenger seatbelts as they are most likely to get overlooked by a buyer. It will be pretty aggravating to take your new vehicle home only to find the seatbelts don’t work.
Many modern seatbelts are equipped with pretensioners. These are little charges in the mechanism that pull the passenger back into the seat in a severe crash. Sometimes seatbelts are repacked without replacement of the pretensioner.
#5–Check the Exterior
Sometimes a hasty repair job is visually apparent. A simple look at the clearance above each wheel can tell you something might be weird about the alignment.
Give the Car a Once Over
Cross-check headlights and other trim features with what should be on that make and model. Often when a repairman is hoping for an easy flip, he’ll shortcut trim-specific extras for cheaper, older replacement parts.
Things like headlights and alloy wheels are simple to swap for cheaper replacement parts. If you know what year and trim the vehicle is supposed to have, you can check images for what it should look like.
Bumpers are expensive to replace, so body shops often try to repair them instead of replacing them. Make sure the bumper paint adheres correctly and matches the body paint.
Pop the Hood and Take a Look
Look for evidence of rebuilding along the firewall. Usually, this kind of damage is too extensive to repair in a way that will be durable. This also indicates that there was damage to the drive train (engine or transmission), which can produce a crop of secondary issues.
#6–Take the Vehicle for a Drive
Have your mechanic test drive it or test it out yourself. Here’s what to look for when you do.
Listen for Strange Sounds
Listen for any strange sound. It seems simple, but if the car doesn’t sound right, it probably isn’t. Test out the AC to ensure the fans are functioning correctly, and the system is working. Listen for brake problems during hard braking.
The vehicle should smoothly transition through the gears. If you feel or hear any slipping, chances are the transmission has some issues.
Feel for Weird Vibrations
Feel for unusual vibrations at different speeds. For example, if the chassis was damaged and not adequately repaired, the car may shimmy or shake at specific speeds. Test the max for braking and acceleration.
Watch for Alignment Issues
Make sure it tracks straight while driving. It should not pull to the side, which can indicate frame damage. Make sure the steering wheel is horizontally aligned while driving straight.
#7–Have Reasonable Expectations
After a laundry list of things you don’t want in a salvage title vehicle, you may wonder if it’s even worth looking into them. But as long as you have realistic expectations and know major money pits to avoid, buying salvage can get you a great deal.
Be Willing to Negotiate
Not everything about a rebuilt car is going to be pristine. When you are the one rebuilding the vehicle, you have the option of choosing a cheaper paint for a repaint, or you might be okay with a dented bumper. If you are buying a rebuild from a mechanic and you have done your homework, chances are you can negotiate a better price.
#8–Check Your Insurance Provider for Salvage Title Limitations
Getting insurance for an actual salvage title is very limited. However, insuring a rebuilt title is easier. If you plan to rebuild the car, wait until you finish your work and get the title cleared.
Check State Requirements for Clearing a Title
Each state has its own requirements for changing a salvage title to a rebuilt title. Most states require evidence that the replacement parts were purchased legally and not from a chop shop.
The state inspection to clear a title isn’t necessarily going to tell you how well the repairs were executed. You as the buyer have to know what to look for or bring someone along who knows.
Talk to an Insurance Agent
Speaking with an insurance agent is the best option to negotiate insuring a salvaged vehicle. Insurance may require an inspection to make sure the vehicle won’t be a liability for future accidents. Not every insurance company offers insurance for rebuilt titles, but an agent can sometimes work unadvertised deals.
If you end up with extra money in the car budget, you may find yourself with some wiggle room for your personal finances. Buying a former salvage can set you up to start saving for a future car to purchase upfront.
Maria Hanson writes and researches for the auto insurance comparison site, BuyAutoInsurance.com. She is passionate about helping drivers find their best insurance options.