How much do you really know about car auctions? If you are like most people, you know very little about how they actually work, but you probably have more than a few misconceptions that have crept their way into the public consciousness over the years. In this article, we’ll be looking at some of the most prominent myths and debunking them so you know exactly what to expect.
Myth #1: The Vehicles Are All Damaged Beyond Repair
While it is true that many of the vehicles and salvage cars that come through the auction will need to have repairs before they are ready for the road again, that does not mean that they are unsalvageable! You can find a number of great vehicles, even if they have salvage titles, which only need some upgrades and repairs before you can start driving them.
Myth #2: You Have to Hope for the Best… And Expect the Worst
This is not true at all. When you are working with a quality auction, as well as a third party that can help you find and bid on the vehicles that you want, you don’t have to settle for less than what you want. If you don’t see a vehicle that you like, or only cars that have more problems than you want to deal with, then skip it and wait for another vehicle to come to auction. The only time that you are gambling in a car auction is when you are buying without any research into the vehicle that you are choosing.
Myth #3: You Will Never Be Able to Insure the Vehicle
This is a common myth that does have some basis in truth. If you buy a car online through a car auction that has a salvage title, it is possible to get personal liability and property damage coverage for the vehicle without too much trouble. However, it can be more difficult to get collision or comprehensive insurance. Some insurance companies are very hesitant to provide this type of coverage for vehicles that have salvage titles.
However, it may be possible to increase the coverage on the salvage title vehicle if you take a few steps first. Namely, you will need to get a mechanical inspection, a physical damage inspection by an insurance agent, and current photos of the vehicle from multiple angles. When you can meet these requirements, it should be possible to get further coverage.
Myth #4: You Can Buy a Car for a Few Dollars
Here is another myth that has some basis in reality. It is very true that you can find some great deals on the vehicles you buy at a car auction. In fact, you can often save thousands over what you would pay at a used car dealer. However, you aren’t likely to find many cars that you can get for pennies on the dollar for its actual worth. You will save, though.
Since many of the myths have some reality to them, it’s easy to see why some people are confused. Now that you know the truth, you can navigate the world of car auctions much easier.
Find information on Rebuilt Title Laws for Each US State. See our Vehicle Auctions and learn more at our Education Centre.
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