Should You Buy a Car that Was in an Accident or Salvage Title?
There is a myth that when cars get in accidents they become worth absolutely nothing, and this is highly untrue as there are Ferrari LaFerraris and other very high end exotics still worth 50% of their value even when they are completely totaled. The reason is because the cost of parts post the sale of the car are often worth more than they were when the car was new. Simply put, buying a Ferrari steering wheel after the fact from your local dealer will cost more than adding the option during the sale. The dealerships are in to make money. While cars that have been in accidents, no matter how big or small, will lose value, it’s all subjective to how bad the accident was.
The moment Carfax reports an accident on the VIN of the car, your car will be worth less than the same car with a clean Carfax; but that is usually about 10-15% less from that fact alone. The second issue becomes what part of the car was hit; if it was a bumper or wheel, then the value won’t drop much more. It’s in the case of damaged door panels, fenders, and airbags deployed that you find huge drops above the 35% line.
Most cars that have been seriously hit can still be repaired as good as new, but will no longer be worth nearly as much. This creates a unique opportunity for someone to buy a car at a fraction of what its clean counterpart would be; and in most cases the mechanical aspects, financing, or warranty will still be intact. If you plan to keep and drive the car for a while, it may make sense for you.
Salvage cars are a different story altogether. Once a car is declared salvage, its ability to become financed or being covered under warranty dies. The car is considered dead to the VIN, registration, title, and any other parties who may be needed to help you buy it. You won’t be able to secure financing or aftermarket warranty.
In other words, you are about to buy a car at a fraction of its normal cost (35-50% off its value) because once you do, you have to buy it in cash. Also, there are restrictions on how to register the car based on each state, your insurance company won’t insure it, but they will insure you. There is a significantly larger risk when buying a salvaged car versus a car with minor accident history, so do your homework please.
Using the strategies found here at Exotic Car Hacks, you are able to buy the same awesome cars at a fraction of the costs; therefore, there is no need to seek out either one of those types of cars when you can buy some of today’s nicest and best kept examples for up to 80% off its value.