The cost of car ownership is expensive in Amarillo, Texas, so if you want to bring that down, you need to be wise and a risk taker: buy your next car in salvage car auctions.
What are salvage cars?
All cars owners are mandated by state laws to get a comprehensive auto insurance, which covers for damages in case the vehicle meets an accident. If it does, the insurance company pays for it once the owner makes a claim.
However, there are times when the cost of the damage is more than the insurance proceeds. It could be because the vehicle has already met plenty of accidents, has been stolen, or has experienced a really huge accident. If this happens, then it becomes a salvage car. All owners with salvage cars are provided with a salvage car title.
If it sounds like a bad omen, it’s because it is. As much as possible, you don’t pick salvage cars. They have one of the least resale values, and even if you sell them, dealers would be having a hard time figuring out how much they cost. Further, you may find it difficult to buy insurance coverage as either the company won’t insure it or premiums are extremely high.
But some people do buy salvage cars particularly in auctions since:
- They are extremely cheap – It’s possible to buy a salvage car for as much as 75% to 90% its book value. For any car owner, that’s a really deep discount. Whatever savings you enjoy, you can use it to cover for future insurance premiums.
- You can use the salvage car as leverage – If an insurance company decides to cover a salvage car, premiums can skyrocket, making the car pricier than it should. However, you can use the value of the salvage car as your leverage—that is, you can tell insurance companies to give you lower premiums since the car doesn’t cost much either.
- These cars are usable – Just because they are salvage doesn’t mean they are no longer usable. Many of them can be repaired and driven for the remainder of their lives.
When should you consider buying salvage cars?
Buying a salvage car requires a lot of considerations during your decision making since the risks are also great. The best person to buy a salvage car is someone who has a more advanced knowledge in vehicles and has no intention of reselling it in the future. Otherwise, you will lose because of its very low resale value.
How do you join the auctions?
Some car auctions in Amarillo TX do not accept salvage cars, but most do. Besides, as competition among auctions heat up, they are more open to varied sellers. You can get ideas about these auctions when you search on websites or subscribe to auctions listings such as Gov-auctions.org. When you meet a salvage car, make sure you are presented with a salvage car title and know the VIN so you can have a better picture of the vehicle’s history.