subject: Discover how cars are salvaged [print this page] Discover how cars are salvaged Discover how cars are salvaged
To some it may seem like salvaged cars are obtained in a somewhat mysterious manner but this is most certainly not the case. Salvaged cars are pretty much given the title the same way in most states. To find out the specifics for your state, visit your local department of motor vehicle.
The process for deeming a car as salvaged
The car has to be damaged to a point where the amount of damage it sustained exceeds a certain percentage of the car's worth, in some states they do not use a percentage value but rather a cash value. The assessment of damage is only done by the insurance company. When the insurance company labels the car as salvage, a salvage title is issued to it. The insurance company then gives the owners their payout and hold on to the car since it is now their property.
Buying a salvaged car from an insurance company
Salvage dealers approach the insurance company in an effort to buy their damaged vehicles. Since it is not the objective of the insurance company to become auto salvage dealers, they sell the cars in the damaged state as scrap metal. This means that the car is to be recycled and sold as scrap metal in that industry. Since the salvage title restricts the car from been legally driven on the roads then the new owner has to arrange for transportation of the car. Once the dealer has transported the car,he isfree to make the necessarymodifications in an effort to repair the car.
Changing the salvage title on a car
Once the dealer has repaired the car to good working condition, the onus is on them to obtain a new title, registration and licence for the car. This is done by submitting the relevant application to your local motor vehicle division. The application should include the relevant form, the old title of the car and the receipts for the modifications done to the car.This is to prevent dealers from using stolen parts. Once the car has been inspected and not found wanting, it will be issued a new title, registration and licence and you are free to drive or sell it. It is important to note that some dealers choose to forego this step and instead sell the car to the buyer and leave them with this burden.
Salvaged cars are a good deal if the process by which they are salvaged is regulated.
