All You Need to Know About Totaled Vehicles

Totaled vehicles are a craze amongst people with limited budget, car collectors and sellers of car parts. Several online auction sites showcase and sell totaled vehicles to buyers, but before you register at an online auction site and go ahead with the bidding process, it is essential to know the factors that are taken into consideration in order to declare a vehicle totaled.

When a vehicle is involved in a collision, it has to be decided whether it needs to be considered “totaled” for first party insurance. There have been instances when a vehicle was “totaled” just because it had some minor or hidden damages. Even the salvage cars insurance professionals might have different opinion about whether a particular vehicle needs to be declared totaled or not. Let’s talk about the basic points that may help consumers as well as insurance companies in making a better decision.

What is the Definition of a Totaled Car?

A vehicle is considered “totaled” when its repair cost is higher than the actual cash value (ACV). There are times when repairing a vehicle isn’t practical even if the repair cost is lesser than the ACV of the vehicle. For instance, if you need around $2000 to repair a vehicle that is worth $3000, it might be considered totaled even if the repair price is less as compared to the ACV. The insurance company, in such situations, might declare the vehicle to as total loss. Insurance companies may follow different criteria to decide whether the vehicle needs to be considered “totaled”. The criteria may also be influenced and controlled by the regulations of the state.

How is the Calculation Done?

Insurance company calculates the total loss ratio and compares it with the limits set by the company or state law. Some states also decide the damage ratio that needs to be taken into consideration to declare a vehicle “total loss”. Every state has different procedures for giving salvage title to vehicles but in most of the cases, the insurance company takes the responsibility of obtaining the “salvage” title for the vehicle.

Once the insurance company pays the pre-loss ACV to the insured, it forwards the certificate of ownership, license plates and the required fee for the procedure to the Department of Motor Vehicle. It is the DMV that issues the salvage certificate to the vehicle. If the insurer wants to keep the vehicle, the insurance company deducts the value of the vehicle from the claimed payment. In other cases, some people buy these vehicles from salvage yards or online auction, get it repaired, re-registered with DMV and classified as a “Salvaged” vehicle.

Before you decide to buy or sell a salvage vehicle, it is important to understand the important elements related to the term “totaled” or “salvage”. Every state might have different rules, therefore, cross-check the rules to get a better information about the whole process.

Bidding On an RV: Changing how you Vacation

RV are a great investment for families that like to travel. These mini homes save a lot of money, otherwise spent on accommodation and becomes a reason for spontaneous travel plans that suddenly seem so easy.

A brand new RV is costly and out of limits for most middle class families. So, forget the road trips and the fun of camping in a comfortable RV? No, bid on a salvage title RV and go on to enjoy your dream vacations at half the price or even less. Read on to find out what an RV can do to your family vacations. You will also find information on importance of getting insurance on an auto salvage auction.

Buying an RV

An RV spells affordable getaways for the whole family without having to worry about money. It also forms the backbone of random plans because you do not need to book a hotel anymore. Everyone has a place to live on the trip, without paying huge money and with proper planning meals can also go for free.

Quick Facts About Purchasing an RV

• Owning an RV saves 59% of travel costs. This includes all maintenance costs, insurance and taxes. So, RV ownership is definitely a good idea for a family that loves to be on the road.
• RVs are available in many sizes and shapes and one can be purchased based on a family’s need and their budget. A salvage RV with repairable damages can be purchased in approximately between $300-$3000. The cost of the salvage title depends on the extent of damage. Online salvage companies deem it better to pay more for a minimum damage RV rather than paying less for heavily damaged RV and then incurring huge costs during repairs.
• Loans can be easily availed for a repairable RV and if the owner comes clean with his credit score. Loans on a salvage RV can be availed only when it can be proven on paper that the vehicle can be repaired and used safely on the roads. This needs an inspection from the DMV office.
• To avoid hassle free loan process, invest some time to find out what kind of damage is easy to manage in your state because there is no point in purchasing an RV that will never get clean papers. So, talk to an expert, visit a few salvage websites and decide only when you are sure about the repairs.
• If all goes well with the purchase and insurance of a salvage RV, a person can also avail tax deductions because a mortgage on an RV qualifies under second home mortgage. Contact an insurance company and calculate your position.

Conclusion

Buying an RV with a salvage title makes a dream come true at pocket friendly prices. Most of the RV available under the title are structurally damaged and can be easily fixed with some investment and a body expert. The main concern is to find a trustworthy company that deals in fair salvage titles because salvage titles are tricky and finding an insurance on an auto salvage auction might become difficult without proper paperwork.

Five Tips to Follow Before You Make Final Bid at Online Car Auction

Car auctions provide a life time opportunity to many car enthusiast to own their dream car. At car auctions and specifically at online car auctions, a car enthusiast capable to restore a used junk car, easily finds his dream luxury car at an affordable price. Though, many a time, there are crossroads and difficulties that a car enthusiast has to pass by while dealing with a used or salvaged car. Often, an auto repair expert also fails to determine the value or condition of salvaged cars, that results huge loss or extra needless investment.

By proper understanding of few tips to deal with while buying salvage cars through online auctions, car enthusiasts can come out of these crossroads and end up with a wise deal. In this article, we will discuss about tips that will result maximum return on investment and will make you own a real good salvage car.

Tips to Follow Before Making a Final Bid

Know Your Capabilities

If at any point of time, you doubt your capabilities to restore a salvaged car and unable to meet mechanical challenges, don’t go ahead with a idea to buy a salvaged car. If you can afford a professional car restorer, that may seek another round of investment, go ahead and own your dream car and at end your car will be less expensive than a new one.

Learn Real Car Value Before you Bid

Use online resources such Edmunds and Kelley Blue Book and get a general idea about the value of used or salvaged car. At the same time, research local prices of salvage car on Craigslist. Before bidding if you don’t check original price of salvaged car, you can end up investing in something that was not worth it.

‘As Is’ means ‘As Is’

At any auction, may it be online or government auction, salvage vehicle sell in ‘as is’ condition. It means, there are no warranties or guarantees. Therefore, before you seal the deal, know what you are about to buy and in future there should be no regret over it. Always inspect a vehicle or have someone do it on your behalf.

Check with Other Vehicles for auction

Before you make final bid, check what others are selling. Many a time, at different auctions the same salvage car sells for different prices. So before you bid, insure you are bidding on ‘best’ available price.

Don’t Get Carried Away

During final bid, don’t get carried away and spend hundreds more than what car deserved. Never look and pin hope only on one car and be ready to walk away from the bidding if it costs more than what you have thought.

Conclusion

Apart from these tips, there are many other tips such as VIN check and consulting an auto expert, however, these tips are generally known by salvaged car buyers, hence it is not discussed in this article. Out of general conventions, it is important to learn tips that can make you distinct from an ordinary league of salvage car buyers. To know and learn more about salvage cars and online car auctions feel free to call us.