While a car is not an essential purchase like having food and shelter. It has its advantages in our fast-paced life. Cars provide an easy mode of transportation from one point to another and are very convenient. Despite these, not everyone can buy a brand new or a slightly used car hence the importance of selling salvaged cars.
Salvaged cars are ones that have had significant damage in the past either from an accident, vandalism, or from natural causes such as floods and hailstorms. It could also be a car that the insurance company has recovered after it was stolen. For such damages, the insurance normally accesses the damages to determine whether it can be repaired or not. If the cost of repairs is more than the worth of the car, the insurance usually pays off the owner and takes ownership of the damaged car then issues it with a Salvage Title.
This means that a car can be repaired but it should not be driven on public roads before it has been repaired and inspected to determine whether it is roadworthy. Since salvage cars can be repaired and resold, it, therefore, means that one can make a decent amount of money selling salvage cars.
Selling salvage cars for a profit
A lot of cars usually end up with salvage titles for many reasons but are not necessarily damaged beyond repair. Due to the ‘Salvage’ title, most of these cars are priced very low as compared to their ‘Clean’ title counterparts. However, with some basic know-how of the business of buying and selling salvaged cars, you can make selling salvage cars a profitable business.
Know what type of cars to sell
Some car models will always sell at a good price, even if not the car, its spare parts. Some of the best salvage cars to sell for profit include; Japanese economy cars (Toyota), Classic Cars such as the Mustang and Chevy Bel-Air; these are such great finds, Minivans, they are great for families, Trucks, SUV and Sports Cars.
Do market research around your location and find out which cars people are mostly buying. This will guide you on which cars will do well in your location.
Know where to source for these salvage cars
Hundreds of cars are often marked as salvage every now and then. Therefore, finding a cheap salvage car that you can resell for profit is very easy. Some places to look into include; car auctions, online marketplaces such as Craiglist and eBay, In the newspapers, on roadsides; you will often see cars with ‘For Sale’ stickers on them.
Obtain a Dealer’s License
There are laws in every region that regulate the number of cars you can flip a year. For some 5 cars maximum while in some you can flip as many as 12. If you are flipping salvage cars for the fun of it then a dealer’s license is not very necessary. A way around it is to ask a licensed dealer to do the paperwork for you then pay them. Or ask family and friends if you can flip the cars in their name.
If you are looking to make this business a recognized one, then you will require to apply for a dealer’s license. Obtaining a dealer’s license is quite a task and costly, the overall benefits of it may work in your favor.
How do I sell a salvage car
Salvage cars still do have value. Especially those that do not have significant damages such as those from theft recovery or vandalism. However, despite the pocket-friendly prices they come at, not many people are willing to buy a car that needs to be fixed and inspected before they can use it on public roads.
There are two major ways in which you can sell your salvage car for profit.
Mine the car for spare parts
This is especially applicable for rare and luxury cars as well as those whose cost of repair are significantly expensive. You can mine for auto parts such as engines, transmission systems, number plates, bumpers, doors, etc.
Flip for profit
This is especially viable for rare cars; they usually sell at a good price to people who like to collect unique automobiles. Salvage cars that have been rebuilt should always have their title. Before you even start negotiating prices with clients, you should give them full disclosure about the car. This includes all the repairs made to it. This will help them decide whether to purchase the salvage car or not. It is unlawful to sell rebuilt salvage cars without full disclosure to the client.
Who buys salvage cars
A salvage title on a car is a formal way of telling a buyer that the value of that car has been diminished either due to accidents, vandalism theft, or other causes. Some of these cars might still be in relatively good conditions hence they can be rebuilt and sold. There are several choices as to where to sell your salvage car;
Sell it to a budget shopper
There are a lot of people looking to purchase a car but they are cost-conscious. If your salvage car is still in good condition, you can sell it to such a person.
Auto Auctioneers
These are salespersons who focus on the trade of both new and old cars. Unlike in the past where you had to physically go to car auctions; these days’ auto auctions are available online. You will only need to list your salvage car, take good pictures, and provide a detailed description of its condition.
Sell it at a Salvage yard
This is for when the car is damaged beyond repair. When selling the car to the salvage yard, you are selling it as scrap metal. This means that you are likely not going to get much from it. The price usually depends on the location you are selling the car from and the current market price of scrap metals. On average, the cost of a salvage car at a yard is about $80; could be more or less.
How much can you sell a salvage car for
The cost of a salvage car is also known as Salvage Value. This is the price at which you can sell your salvage car after factoring in its life and the cost of depreciation. The cost of a salvage car differs depending on several factors such as your location, state of the salvage car, and where you are selling the car. However, regardless of all that, the average cost of a salvage car is usually about 30% to 50% less than the value of a similar used car.
Bottom line;
There are so many items in your car that maintain their value regardless of the life span and the damages on the car. If you are passionate and knowledgeable about cars, you can make selling salvage cars your side hustle. If you only want to make a few extra cash from your salvage car then there are a lot of salvage car dealers ready to buy your damaged and old cars and will pay on the spot.
