Buying a used car is a great idea if you want a reliable car for an affordable price. Many people choose to buy used and love it. There are many different options when it comes to used cars. One of the best options for price is to get a salvaged title. Here are some things you need to know about buying a car with a salvaged title.
What Is a Salvaged Title?
When a car is an accident that is very severe, the insurance company will declare it a salvaged title. This means that the amount of damage exceeds the value of the car. Then the insurance companies will generally sell that car at an auction where someone will buy it and do the necessary repairs. Then they pass the car onto the buyer at a fraction of the cost.
At this point the car is said to have a branded title. This means that it was in an accident previously, but has been repaired.
What Are the Advantages to Buying a Salvaged or Branded Title?
The biggest advantage is no doubt the cost of the vehicle. When you buy the car at auction it generally costs a small fraction of what the car is worth. You can get the car for a half or even a fourth of what the original value of the car was. Then with the repairs you can get the car up to how you want it to be. Some people are able to get practically brand new cars that were previously in an accident, for very low prices.
What Are the Disadvantages to a Salvaged Title?
The biggest disadvantage is the resale value. Many people are skeptical about buying a branded or salvaged title. This means that when you sell the car you are going to have to sell it for a low price as well. But if you consider that you bought the car at an incredibly low price, then selling it for a low price as well might not bother you.
Who Should Buy a Salvaged Title Car?
The people who benefit best from buying a salvaged title are those who are on a budget, and who are planning on running the car to the ground. If you want to buy a reliable car that you will use for 5-10 years, then a salvaged title may be great for you. You can get the car that you want at the price that you want.