Our Guide To Buying A Salvage Car

Buying a salvage car can be a great way to save money, but it comes with its own set of challenges. Salvage cars are vehicles that have been declared a total loss by an insurance company, usually due to damage from an accident, natural disaster, or theft. If you're up for a project and want to acquire a car at a fraction of its market value, this guide is for you. Here's everything you need to know about buying a salvage car.

1. Understand What You're Getting Into

Before anything else, you need to recognise what it means to own a salvage car. These vehicles are often severely damaged and will likely require significant repairs before they can be safely driven again. The repairs could range from minor cosmetic fixes to major structural replacements. Therefore, it's crucial to thoroughly understand the extent of the damage and the work needed to restore the car.

There are different categories of salvage titles that insurers use to inform a buyer of the type and severity of damage that a vehicle has had.  These are provided by the Association of British Insurers (ABI) and split into four categories A, B, C and D:

Category A
This classification is for cars that have been so badly damaged they should be crushed and never re-appear on the road.  They are only suitable for scrap.  Even salvageable parts must be destroyed.

Category B
This signifies extensive damage, although some parts are salvageable.  The vehicle should never re-appear on the road, however reclaimed parts can be used in other road-going vehicles.

Category C
This vehicle is repairable but the costs exceed the vehicle’s value.  They can re-appear on the road once repaired.

Category D
The vehicle is repairable but repair costs are significant compared to the value, including any time delays to source parts.  These vehicles can re-appear on the road.

2. Conduct a Vehicle History Report

One of the first steps in this process should be obtaining a detailed vehicle history report, you can use our online tool to do this. This report will provide you with a comprehensive list of the car's history, including past owners, accidents, title issues, and maintenance records. This information is invaluable for understanding the vehicle's condition and assessing if the purchase is worth it.

3. Inspect the Vehicle Thoroughly

Whether you are a seasoned mechanic or a novice, an in-depth inspection is non-negotiable. If you lack mechanical expertise, it is wise to hire a professional mechanic to inspect the car. They can identify any hidden issues that aren't immediately obvious, giving you a clearer picture of what needs to be fixed.

4. Estimate Repair Costs

Once you've understood the extent of the damage, the next step is to estimate the repair costs. Make a detailed list of all the needed repairs and gather quotes from several repair shops. This will help you create a more accurate budget and determine if the salvage car is a cost-effective option.

5. Negotiate the Price

Armed with your vehicle history report and repair estimates, you're in a strong position to negotiate the car's price. Remember that you should factor in the cost of repairs, potential inspection fees, and any added expenses for re-titling the car when you are bargaining.

6. Secure Financing

Purchasing a salvage car often complicates the financing process. Most traditional lenders are hesitant to finance salvage vehicles due to the risks involved. You may need to pay in cash or find specialised lenders who offer financing for salvage cars. Ensure you have a clear understanding of the financial requirements before committing to a purchase.

7. Get Insurance

Insuring a salvage car can be another challenge. Many insurance companies don't offer coverage for salvage-titled vehicles, or they might only offer limited options like liability coverage. Shop around and talk to multiple insurers to find the best possible coverage for your salvage car.

Conclusion

Buying a salvage car is not for the faint-hearted, but if approached smartly, it can be an excellent way to own a vehicle at a reduced cost. Thorough research, a clear understanding of the vehicle’s condition, and proper financial planning are crucial to making a wise investment. Follow the steps outlined in this guide, and you'll be well on your way to acquiring a salvage car that meets your needs without breaking the bank.