What is Salvage title?

Does Bidding on a Salvage Car in a Dealer Auction Make Sense for Me?

By Mike Richards Updated: 05/22/2019 Posted: 07/13/2017

Consumers in the United States are increasingly discovering why dealer auctions are the best way to purchase a vehicle. Still, as more and more make use of this service, they find themselves with questions about what they find. Namely, there’s a lot of confusion surrounding salvage vehicles, which make up a significant portion of what’s available.

Provided you’re a savvy bidder and conduct research, salvage cars can provide an incredible opportunity for savings for most auto buyers. To explain why this is the case, we’re going to delve deep into the subject of salvage cars in dealer auctions below.

Understanding what Salvage Cars Are

The simplest way to explain salvage cars is thus. These are vehicles that have, for any number of reasons, had at least 75% of their insurance policy paid out to the policyholder.

Obviously, one main reason why this might happen is due to a catastrophic collision. In this instance, an insurer has made the determination that repairing the vehicle will be more costly than the vehicle is worth. They then pay out the policy and take possession of the vehicle rather than paying for repairs. At this point, the vehicle is given a salvage title.

There are other reasons than this, though. For example, consider a vehicle that has been stolen. At a certain point, the vehicle’s policy will be paid out even if the vehicle is not recovered. Should the vehicle be recovered at a later date, it will become the property of the insurer and be given a salvage title. In this instance, the salvage designation has nothing to do with the state of the vehicle.

The point is that salvage cars aren’t all necessarily wrecks. But, even in cases where there is significant damage, the potential for a good deal still exists! If you can make repairs yourself and source your own parts, you’ll ultimately save quite a bit. Likewise, if you know a trustworthy and affordable mechanic, this could work to your advantage too!

Salvage Cars You’ll Find in Dealer Auctions Online

When you make the decision to open up the possibility of buying a salvage vehicle at a dealer auction, your choices truly expand. Of particular note will be the number of classic and luxury vehicles that you’ll find in this category. By looking at what’s available and gauging your capacity for making repairs, it’s entirely possible that you could find a real gem at a rock-bottom price.

See Everything Available in Online Dealer Auto Auctions

But, of course, you shouldn’t just constrain your search to salvage cars! Ordinary used cars can be had at incredible prices too when you use online dealer auto auctions!

Ultimately then, the best strategy is to consider all options, as this will give you the greatest chance of finding the deal that’s going to be perfect for you. As always, be sure you’re taking advantage of the auction specialist who has been assigned to you. He or she can really help when it comes to your search, even connecting you with auctions you won’t be able to find online.