Salvage car auctions are becoming big business in America today. In today's more ecologically consider world where Reduce, Re-use, Recycle has become a catch phrase, recycling of salvage vehicles has become a major player in saving our ecology. The salvage car auction offers a great way for salvage yards to buy damaged vehicles for their recycling purposes. Most generally these salvaged vehicles are taken back to salvage yard and parted out before the left over husk of the vehicle is crushed and generally sent off to be melted down to make new metal products. So the lawn chairs sitting on your patio, in another life, could have been your first car that you wrecked on prom night.
What Is A Salvage Car Auction?
So what is a salvage car auction? Basically most of the vehicles bought up for sale at a salvage car auction are from insurance claims. When a car is involved in an accident, the insurance company takes a look at the damage to the vehicle and other factors such as the age of the car and the Kelly Blue Book value. If the estimated cost of repairs to the vehicle is more than the value the insurance company assigns to it, then the vehicle is considered total and the insurance company buys the vehicle and salvages it.
The interesting point to all this is that insurance companies then sell these cars at a salvage car auction and these cars can be bought very inexpensively. What makes this such a great deal is that, while most of the cars that come through a salvage car auction are destroyed beyond repair, some vehicles with very minor damage are considered totaled due to the age of the vehicle or the expense of a particular repair . Many times a summer hailstorm near a new car lot will result in a huge loss for the insurance company and a large number of cars that are mechanically sound but suffer from cosmetic damages. What does this mean for you?
What it means is that you can buy a new or nearly new vehicle for a very low investment at a salvage car auction so long as you can deal with the minor cosmetic flaws such as dinged paint or chipped windshields. So it is quite easy to see that salvage car auctions serve a purpose in our society and can make for some wonderful savings.