It happens surprisingly often during the search for a reliable used car: A buyer finds a late-model vehicle selling for hundreds or even thousands less than comparable models. However, there’s a big asterisk-;the car has a salvage title. While a seller can say that damage was strictly cosmetic, buyers should tread lightly. According to Consumer Reports, cars with salvage titles are worth only about half of their Kelley Blue Book value. Below are several reasons to avoid buying salvage-title cars.
The Basics of Salvage Title Cars
When cars have been damaged and repairs are more costly than the value of the vehicle, an auto insurance company will take possession and consider it totaled. From there, auto insurance in Wichita KS would sell the vehicle to a rebuilder or a salvage yard, and the car receives a salvage title to warn buyers that the car has been declared a loss.
Salvage Title Vehicles are Tough to Finance or Insure
If a buyer hopes to finance and insure a car with a salvage title, they might be in for a shock as they may not be able to purchase all types of auto insurance. Few insurance companies will write comprehensive and collision coverage on a car with a salvage title, but buying liability-only coverage will drive auto insurance costs down. It’s also difficult to finance a salvage vehicle, so the buyer should be prepared to offer cash. Without collision and comprehensive auto insurance, it’s unlikely that a buyer will find a willing lender.
Safety is in Question
Safety is an important reason to avoid cars with salvage titles, as many rebuilders take shortcuts to increase their bottom line. While alignment and structural issues are prevalent, rebuilders often economize on airbags. Studies show that one of every 25 previously damaged cars has fake airbags installed; lax oversight makes it simple for a dishonest rebuilder to cut corners.
While some people may be tempted to buy a car with a salvage title to save money, it can end up being costly in the long term. Salvage-title cars are almost impossible to resell or finance, and it can be difficult to obtain auto insurance in Wichita KS. Think carefully before buying a salvage vehicle, and visit us to enjoy the benefits of a safe car and a fuller bank account.
