Sunday, December 6, 2015

How to Purchase a Car With a Salvage Title

A car with a salvage title is a vehicle that has been deemed "totaled" by an insurance company. In other words, the cost of the repairs were more than the estimated value of the car. They are re-titled as salvage vehicles and then sold at auction or to salvage yards at a reduced price to be used for parts. Often times, people fix up cars with salvage titles for sale or personal use. Buying one of these cars is a risk because there is no way to gauge how good the repairs were.

Instructions

    1

    Ask the seller for the VIN number. Run a car history report on a site such as Carfax or NADA. Look at how many times the car has been bought and sold both before and since the salvage title report. A high number of sales may indicate that there is a major problem with the vehicle.

    2

    Ask the seller basic questions about the car such as repair and maintenance history, mileage, and when the the tires were changed last.

    3

    Have the car checked by a trusted mechanic for obvious damage. Companies such as Midas or Brake Check will run a routine check for major problems and fill out a report for a flat fee.

    4

    Drive the car and watch for pulling in one direction. The car should stay straight without much adjustment of the wheel. Pulling often indicates an alignment problem that could be connected with significant frame damage.

    5

    Pay for the vehicle if everything checks out. Obtain a signed title of sale from the seller of the vehicle. This title should list the car as a "Salvage", give the VIN number, plate number, and mileage. Fill out the title, tax and registration forms for the state of residence. It is the buyer's responsibility to go to the county tax office to fill out tax and registration forms and pay fees associated with them.

0 comments:

Post a Comment