For some people, seeing a car with a salvage title is enough to turn them off from any type of purchase. However, for those who are “in the know,” such as car dealers (and other salvage markets), buying a car with a salvage title can actually be a great investment. If you are considering buying salvage cars at auction such as the ones we provide at Vemark’s (online auto auctions) SalvageNow, it is important that you keep the following tips in mind for the best possible outcome.
First of all, you want to make sure that you understand the damage that the car has. In the vast majority of the cases, the car has a salvage title due to a crash. However, fire and flood damage might also be the cause. At SalvageNow.com, we offer many detailed photos of the damage as well as detailed damage descriptions so you can understand the type of damage as much as possible. Additionally, some types of damage are easier to repair than others. To get the most out of your investment, it’s best to choose a car that only has body damage in an isolated area. It’s also advisable to stay away from suspension and frame damage. This is much more difficult to deal with than it might appear. Cars with this type of damage are better used as parts cars.
Buying a car that you have the parts for or you know where the parts car is will give you a huge advantage. Sticking to a particular year, make and model when rebuilding cars has several advantages. If repairing the same type of vehicle, you become familiar with the type of damage certain cars have given a certain type of hit. You also cannibalize the remains of each car and use every last part from the parts cars saving you a great deal in parts and time.
Secondly, you want to make sure that you understand how history of cars work and why a clean title can have damaging history. One easy way to do this is to get a CARFAX report, or similar, but remember, this is not the entire story. As a matter of fact you can’t control cases where the CARFAX shows up after the car has been repaired. The vehicles we offer on SalvageNow are from a wide variety of sources including from individuals, national car rental companies, insurance companies, fleet companies and other sources. The salvage title vehicles have a value that if taken into account is sometime easier to manage making a profit cause there’s no surprises. If you repair cars correctly representing them accurately and build a good name for yourself, the history is far less an issue and certainly not a surprise in the form of a loss on sale
Finally, make sure that you are paying attention to the correct way to bid, especially when it comes to an online auction. For instance, you will likely need to use a dealer’s license or salvage license to register, and then ensure that you know what everything means. Most online auto auctions have symbols, terminology, and bidding methods that you must become familiar with to get the most out of the purchasing process. At SalvageNow.com, we make everything as seamless as possible, from registration to bidding to delivery, so you don’t have to worry about the details and can focus on running your business and making a profit on your salvage car purchases.