Question by nojuicy: Why do slightly damaged cars get salvaged?
I went to a salvaged car auction the other day and saw lots of cars that didn’t looked that damaged at all. Why do this cars go to auction if it might only take a couple thousand to fix them up like new? Some of this cars kelley blue book value is $ 20K plus and only need some back end work to fix them. Why would insurance companies just send them to auction? 10 pts for best answer
Best answer:
Answer by Molly
to save them spending more money and paper work to get them fixed. they pay the owner money he has payed the in the first place they get what ever they sell for aswell les a bit of commission for the auctioneer. ps if im the only one to answer do i get the 10 points lol
Give your answer to this question below!
3 Responses
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psycmikev Says:
While the damage may look slight, there could be frame damage which would cause them to salvage the car. I had a minor accident years ago, I thought nothing of it, my mechanic told me there was a slight bend in the frame, the insurance company junked it. Even though my mechanic told me it was slight, it was too expensive to fix, and would put undue stress on the car if you continued to drive it like that.
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Dave87gn Says:
if the repairs on a car outweight the value of the car, its TOTALED..meaning it gets a salvage title. Someone obviously thinks it was worth it to them to fix it., but at some point the car was a total loss, and YOU (buyer) arent sure that its been fixed right
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$JT$ Says:
A lot of times, depending on the state, there are thresholds for repair. In MD, for example, it is 75%, so if the repair cost exceeds 75% of the vehicles value as determined by NADA, then by MD law, it is a total loss. The biggest factors are age and mileage when it comes to value. A car 10 years old with 150,000 miles on it, would most likely total with only $ 3k worth of damage on it. Even though it maybe a easy fix, by law, it is a total. Some states do not have a threshold, so it is 100%, but the same rule applies. Sometimes, it can just be up to the insurance company as well. If they feel that there is so much damage to it, that it cannot be fixed, they can total it. For example, we had a brand new 2010 Lexus that only had $ 28k worth of damage, but because of the extent, the insurance company simply totaled it and paid the owner off.
Salvage yards aren’t just for totals either. Some cars, like a theft and recovery can also go there. In some states, if a car was taken, the owner can refuse to accept it back, regardless of condition, which is how I came to own my Explorer.
If you donate to the Salvation Army or other organizations that ask for your cars, they end up there as well. At lot of government vehicles, like police cruisers and seizures will end up there to be sold. You could even sell your car at a salvage auction if you couldn’t find a buyer any other way.
