Does Buying Salvaged Cars Make Any Business Sense?
Consumers who don’t have a lot of money to shell out or are simply looking for a good deal will find solace in salvaged vehicles. With a good deal of research and a bit of luck, you should be able to find a trustworthy car that saves you the money and has the reliability that a clean-titled vehicle brings.
Why Salvaged Vehicles Are Totally Worth the Investment
Salvaged vehicles shine when you consider value for money. A clean-titled car that may cost around $6000 could be purchased for as less as $1200-1500 as a salvage-titled, slightly damaged vehicle. The repairs wouldn’t cost you more than $2000-3000 worth of bodywork, paint jobs, and miscellaneous costs, and would get you a car that looks and works just like its clean-titled counterpart at a serious profit. The resale value does take a hit if it is salvage titled, so these are great cars to own but not particularly profitable if resold.
Picking the right salvaged vehicle is very important. You should look into great dealerships like http://www.idealautousa.com/ for the best deals. Rebuilt title cars are the most reliable option and are very roadworthy. Fixed salvage vehicles will be even cheaper than rebuilt ones, but might need a little fixing and testing on your end.
Making Money with Salvage Vehicles
Salvage cars make a lot of money if they are sold for parts. Otherwise, an owner could also try to “flip” the vehicle and make a profit. Automotive parts are very expensive, and more so for older luxury vehicles. It is quite likely that taking apart a salvage car and examining its parts will reveal that the individual parts cost a lot more than what you paid for the car.
If you are rebuilding a car from salvage and then selling it, you must remember that you are legally required to mark it as a salvage vehicle. You could face serious legal issues in the future if this is not disclosed to the buyer beforehand.
Are Racing Cars an Exception to the Norm?
The market is a fickle environment- something that costs thousands of dollars today could be worthless tomorrow. This is especially true for salvaged vehicles. There’s one exception here though- cars that have a niche and aren’t meant for general use on the open road. A good example of this is the racecar segment. You don’t really need full road-ready vehicles for cars that will be raced at local tracks- all you need is a good engine. Different tracks and competitions have their own rules but a lot of them accept cars even if they are fairly beaten up. A lot of motorheads actually take pleasure in fixing and tinkering with their cars, so you might actually be able to make a solid profit by selling your car to a racer, and you might not have to fix it up either. A normal car cannot take as much wear and tear and stops working sooner at the race track, which is why salvage title race cars make that much more sense.
Conclusion
The biggest advantage a salvage title vehicle can have is the cost factor; you can buy them for 20-30 cents on the dollar at an auction if you’re lucky. You will, however, have to put in some effort into repair and upkeep, but it is totally worth it in the end.
Author Bio:
Roman Berenson is an auto dealer and blogger based in Detroit. He has been tinkering with and repairing cars and car parts for the last 20 years and enjoys talking and writing about cars. He now owns a used car dealership and writes all about buying and selling vehicles. He recommends http://www.idealautousa.com/ to his readers.
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