Many people believe that all salvage vehicles are lemons that cannot be used for any other purpose other than scrapping. The notion, however, couldn’t be further from the truth. For starters, not all salvage vehicles are the same, as there are various reasons that a car can be deemed as a total loss and sent to a salvage yard. That’s the reason why, before we jump to conclusions, it would be sensible to understand the various types of salvage vehicles you can find in salvage auto auctions, which we will cover in this blog post. Read on.
Reasons for which a Car can Receive the Salvage Title
Collision
The most common reason for which cars are given the salvage title is collisions or other road mishaps. If a car meets with an accident and its estimated repair cost exceeds its insured value, its insurance company writes it off as a total loss and compensates the owner. That said, many of these cars are well within the scope of restoration.
Burns
If an automobile catches fire due to any reason, it can receive the salvage title, depending upon the extent of the damage it has received. If the damage is extensive and will call for a significant investment in repairs, the vehicle will be given the salvage title. Such vehicles are generally used for salvage parts as restoring them completely is likely to cost more than their value.
Natural Calamity
Another reason for which a car can receive the salvage title is if it gets damaged due to a natural calamity such as flood, hail, hurricane, or earthquake. In such events, as the number of damaged cars is quite high, insurance companies often end up giving the salvage title to cars that can be restored. Keep an eye out for such cars as they can offer great value for money.
Theft
When a car is stolen and not recovered for a certain period, the insurance company is liable to compensate the owner, and if it is restored after the owner has been compensated for it, the insurance company takes its ownership and sends it to a salvage yard. These, in regards to theft recovery cars, are often in pretty good shape.
Bank Repossessed
When someone takes an auto loan to finance the purchase of a car, the car’s ownership lies with the lending bank until the loan amount as well as the interest are paid in full by the borrower. If the borrower fails to make their monthly payment, the bank has the right to repossess the car, which is then sent to a salvage yard.
Wrap Up
In addition to the aforementioned, you can also find clean title cars in salvage auto auctions online. If you are looking for a trusted platform to buy a clean or salvage title car, the search ends at Salvagebid. A leading name in the industry, Salvagebid gives you access to the largest auto auction inventory in North America, including a range of makes and models from all popular brands. To start bidding in our online auto auctions, register with us today. If you have any questions, simply call: +1 (360) 347-1300 Monday through Friday, 7am to 4pm (PST) or email at: support@salvagebid.com.