Flood-damaged vehicles can often show up as salvage title cars. While their low price point may seem attractive, there are many risks to be aware of that should make you think twice about buying a vehicle with a salvage title.
Risks of Buying a Car with a Salvage Title
One of the biggest risks of buying a salvage title vehicle is the unknown. You truly don’t know the extent of the damage that was done. In order for a vehicle to have a salvage title, an insurance company has to declare it a total loss. Depending on the state, the car’s repairs would need to cost 50 to 90 percent of its pre-cash value.
Along with the amount of damage being a mystery, there are four other risks to consider:
- Safety – People who rebuild salvage cars sometimes cut corners to save money by installing faulty or inexpensive parts and equipment.
- Fraud – People who sell salvage title cars can withhold or lie about the damage done to the vehicle.
- Insuring/financing difficulties – Sometimes, it can be hard to get proper coverage on salvage title cars. Insurance companies are scared off because of the difficulty involved in assigning accurate vehicle values.
- No resale value – Most dealerships won’t accept salvage vehicles as trade-ins, and they typically can’t be valued accurately with online pricing guides.
A salvage title car can be a viable option if you know the ins and outs of the specific vehicle – especially if you know the seller and have a detailed history of the car. You may also benefit from a salvage car if you have the mechanical knowledge to repair any future issues. Regardless of your choice, salvage vehicles come with the potential to cause more risks than rewards.
Pointing You Toward a Dealer
If you’re shopping for your next vehicle but are skeptical of a salvage title car and worry about your credit situation, Auto Credit Express can point you toward a dealer in your area. We work with an extensive network of special finance dealers that have the lending resources available to help people with bad credit, no credit, or even bankruptcy. Let us be your guide, just fill out our obligation-free auto loan request form to get started today.