The pandemic-induced vehicle shortages have made buying a car more expensive than most people anticipated. Even though the market is starting to find a balance, the cost of used vehicles is still higher than it has traditionally been.
If you`re considering buying a vehicle with a salvage or rebuilt title, you need to be extra careful because of the additional risk these vehicles carry. When weighing the lower purchase price with other risks, you should ask yourself first: “Are salvage titles more expensive to insure?“
We`ll answer that questions and provide tips for improving your odds of purchasing a salvage car that will serve you well for years to come.
Are salvage cars more expensive to insure?
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There are different rules for vehicles with salvage titles in different states. For example, in New Jersey, if a car has a salvage title, the owner who wants to drive it must have it inspected by law enforcement to certify that it`s roadworthy.
Liability insurance rates for salvage vehicles are similar to cars with clean titles. The fact that a vehicle has a salvage title doesn`t make much difference in its risk of causing a crash. The driver`s history and vehicle factors like the car`s power and safety features play a more significant role.
Some insurers may charge 20% more for coverage for vehicles with salvage titles, but some won`t change the premium based on the car`s title. So, when shopping for insurance for a salvage vehicle, be sure to compare quotes from several companies.
What problems should you look for in a salvage vehicle?
The reliability of a vehicle with a salvage or rebuilt title will depend significantly on the damage it sustained. In general, cars with frame damage are far less dependable than vehicles with cosmetic damage.
Frame Damage Versus Cosmetic Damage to Vehicles
For example, if a vehicle`s frame was damaged, even with straightening attempts, it`s unlikely to be 100% aligned. In addition, bent frames will often result in tires that wear quickly, handling issues, and heavy wear on axles and tierods.
On the other hand, a vehicle that sustained severe hail damage may look terrible but may drive like a new car and require only routine maintenance.
Flood Damage to Vehicles
You should avoid purchasing a vehicle with a salvage title due to flood damage. Not only can water damage lead to interior mold problems that can adversely affect your health, but it can also cause electrical issues.
Electronics that sustain water damage are prone to shorting out, even months or years later. Often, electrical problems are challenging to find and repair.
What are some tips for ensuring a salvage car`s reliability?
There are several ways you can increase your odds of getting a reliable salvage vehicle,
Investigate the Damage
First, you need to know what kind of damage it sustained. A vehicle report should indicate how the car was damaged. But sometimes, a vehicle report will state something vague like “body damage.” If you can`t get specific information from the vehicle report, you need to find out who repaired the car.
A reputable repair company will explain the vehicle’s condition before repairs and the steps they took to rebuild it.
Get the Car Checked by Trusted Mechanic
If you`ve found a mechanic or repair shop you trust, you can ask them to inspect any vehicle you consider buying. They will probably charge a fee for this service, which is almost always worth paying.
Share the information you learned about the kind of damage the car received, and ask your mechanic to see if what they find lines up with what you were told. A skilled mechanic can often identify everything from bumper dent repairs to frame repairs.
What are the benefits and risks of buying a salvage car?
The main benefit of buying a car with a salvage or rebuilt title is the possibility of saving a lot of money. Of course, with that benefit comes the risk of costly issues, as mentioned above. However, finding a reliable vehicle for a steep discount because of its title can enable you to afford a car you might not have been able to otherwise.
Just remember that if you resell the vehicle, you won`t be able to sell it for what a comparable car with a clean title would sell for.
Buying a salvage car can be a great way to save money, and taking precautions can help you find a vehicle you`ll be happy with for years to come.
