This video explores the concept of buying salvaged cars and then discusses whether they are worth it. The speaker begins by explaining what a salvage title is. It’s a document that a vehicle can have assigned to it once it meets certain criteria. The most common salvage titles come from automobile accidents, and they usually involve newer vehicles with extensive damage or older vehicles with a minimal amount of damage. The insurance companies have a certain system that they go by to determine whether these vehicles should be classified as salvage cars. The damage to a vehicle has to be about 75 percent of the vehicle’s value to qualify for salvage classification.
Therefore, a $1,000 vehicle has to have at least $750 worth of damage for a salvage classification. It doesn’t take much to accumulate $750 in damage.
An individual can get a deal from a salvage vehicle. If the individual is mechanically inclined and knows where to get quality tools and parts, that person can fix the salvage vehicle so that he or she can sell it to another party. Sometimes, a salvage vehicle can be a small gold mine for a person who knows the automotive industry well.