How To Finance a Salvage Car – Is It a Good Idea?
Salvage Cars June 29th, 2009Before you decide on financing a salvage car, you need to understand the implications of acquiring one. A salvage car is usually a car that has been in an accident or flood or some other calamity. It is considered a ‘total loss’ and is meant to be junked completely or sold only for spare parts. However, there are a great number of people or insurance companies who sell the cars to repair shops and give a title that does not specify that it is a salvage vehicle.
Unfortunately, these vehicles are usually not fixed up properly and are just given a face lift so to speak. They are in no condition to be considered road worthy and are definitely not safe to be driven. Although there are vehicles that have been salvaged and have performed adequately on the road, they are in the minority. By and large, salvage cars are patched up vehicles which are likely to collapse soon after purchase and likely to lead to serious accidents.
Hence, financing a salvage car is a difficult process. Most banks refuse to sanction loans on salvage cars, although you can check it out with your local banker. In the unlikely event of finding a banker who is willing to finance a salvage car, you may find that the interest rates are very high. On the other hand you could approach a local credit union and check out their policies vis-à-vis salvage cars. A number of credit unions have started to loan on salvage cars in recent times and usually give a better interest rate than most banks.
 2002 PEUGEOT 307 HDI DAMAGED SALVAGE CAT C STARTDRIVE  £670.00
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 MITSUBISHI COLT 54 PLATE DAMAGED REPAIRABLE SALVAGE £2,995.00 |
 FORD FOCUS MK3 57 PLATE DAMAGED REPAIRABLE SALVAGE £3,595.00 |
 FORD FOCUS C MAX 2005 DAMAGED REPAIRABLE SALVAGE £2,695.00 |
 2004 PEUGEOT 307 SE WHITE DAMAGED SALVAGE CAT C £795.00 |
 2004 FORD FIESTA LX SILVER DAMAGED SALVAGE CAT C £850.00 |
 VAUXHALL ASTRA 2000 SALVAGE DAMAGED REPAIRABLE £550.00 |
 RENAULT CLIO DYNAMIQUE 2003 SALVAGE DAMAGED REPAIRABLE £1,350.00 |
 NISSAN ALMERA 2004 SALVAGE DAMAGED REPAIRABLE £950.00 |
 2008 Mini One 14 A C 6 speed Blue DAMAGED £5,950.00 |
Of course, financing a salvage car also depends a great deal on the condition of the car and whether it has received a clean title. This in turn will depend on whether the vehicle has undergone a thorough inspection by a competent authority to be considered worthy of receiving a blemish free title. You will need to gauge if the price of the car is in keeping with the condition.
The other aspect to consider is the retail value of the salvage car in the future. You might find yourself owning a vehicle that only gives you trouble and also cannot be resold later. In this case, you are going to find yourself with a millstone round your neck. And a series of interest payments on a vehicle that will be even more of a total loss.
So it would be a good idea to have the salvage car checked out thoroughly by an expert mechanic who can look into the condition of the body/frame; whether the airbags are functioning; ensure authentic parts; and double check all safety features. But even with all these assurances you still need to ensure that the salvage car can withstand the wear and tear of being on the road, and whether the price makes it all worth it. Financing a salvage car really depends on all these factors because any other return on the investment, apart from the price benefit, is hard to identify.
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June 29th, 2009 at 2:14 pm
[...] Originally posted here: How To Finance a Salvage Car – Is It a Good Idea? [...]
November 20th, 2009 at 12:27 pm
Nice information. I really agree with your words. There are so many salvage problems will arise if we look for such kind options..Many thanks. See you…