3 Tips for Selling a Salvage Car
Accidents happen, and when these accidents occur while you are behind the wheel of an automobile, they can render your car useless. When an insurance company determines that the cost to repair the damage outweighs the actual value of a wrecked vehicle, the car or truck is deemed to be salvage. Selling a salvage car for parts can be beneficial when it comes to recouping some of your financial losses.
Here are three tips that you can keep in mind when selling a salvage car in the future.
1. Inventory the damage.
Before you attempt to sell a salvage car, you must inventory the damage. This means talking to the insurance company and requesting a list of all the repairs that need to be made in order to return the vehicle to a road-worthy condition.
Buyers looking to invest in salvage cars often want to use these cars for replacements parts, so knowing which parts are still working can help facilitate the purchase process. Some buyers may want to buy a junk car to restore, and knowing the exact damage the vehicle sustained in an accident can help these buyers estimate repair costs.
2. Establish ownership.
Because the cost of purchasing a new vehicle is significant, many drivers opt to finance their vehicle purchases through a dealer, bank, or credit union. These institutions provide the financial resources needed to make the initial purchase, and the driver repays the loan over time.
Until the loan has been repaid in full, the financing party is considered a lien holder. This means that ownership of the vehicle cannot be transferred from the borrower to a third-party without first paying off the balance of the loan. Be sure that you are able to establish ownership before you attempt to sell a salvage vehicle to avoid complications in the future.
3. Abide by state laws.
Most states have instituted lemon laws that are designed to protect car buyers from less-than-scrupulous sellers. To ensure that you aren't violating your state's lemon laws, take the time to become familiar with these laws.
Most states require that a seller disclose any damage the vehicle sustained, list the vehicle as having a salvage title, and ensure that the buyer knows the vehicle is being sold as-is. Knowing what your state requires will help you successfully sell your salvage car without facing legal problems down the road.
If you want to sell a salvage car in the future, be sure that you take inventory of the damage, establish ownership, and abide by your state's lemon laws to ensure the selling process goes smoothly.