Understanding the Value of a Salvage Vehicle

A salvage vehicle is effectively past the point of repair due to excessive damage.

Many vehicles get damaged beyond repair every year through accidents and natural disasters. Even careful and responsible drivers can end up with a wrecked vehicle that is no longer safe to drive. But that doesn’t mean it has no value.

This guide will look at the value of salvage vehicles and what to do with them.

What counts as a salvage vehicle?

A salvage vehicle is effectively past the point of repair due to excessive damage. In other words, it would cost more to fix the vehicle than it’s worth. When that happens, the insurance company calls the vehicle a total loss and recommends issuing a salvage title.

The causes of salvage vehicles

There are lots of possible causes behind vehicles being classed as salvage. The most obvious cases are when cars have been involved in serious accidents, like a head-on collision. Those crashes often damage the vehicle’s bodywork and vital interior components. Floods, earthquakes, and other disasters also leave salvage vehicles in their wake.

However, there are cases in which only minor damage could still cause a vehicle to fall into the salvage category. For example, imagine someone owning a rare vehicle with extremely expensive and hard-to-find parts. If they get into an accident that damages some of those parts, the insurance company may class the car as salvage, even if the rest of the vehicle is relatively unscathed.

The value of salvage vehicles

It’s important to understand that salvage vehicles always have some value. Even a lump of twisted metal is worth something to a dealer who can take it apart and reuse it. As explained above, some salvage vehicles will still have usable and valuable parts. There’s also a simple way for owners to estimate their vehicle’s salvage value. First, they must look up the vehicle’s fair market value (FMV) via a trusted industry guide. Then, check the percentage of the FMV the insurance company uses to determine if a vehicle should be classed as salvage. It’s usually about 75%.

That means the salvage vehicle is worth around 25% (or less) of its FMV. So, multiply the FMV by 0.25 to get a rough figure of how much the vehicle is worth.

Sell salvage vehicles to trusted buyers

Many people are unsure what they can do with a salvage vehicle. However, there are professional junk car buyers who will be only too happy to take it away for a fair price. Contact a local salvage buyer if your car has been wrecked in a crash or ravaged by nature.

If you are in the Phoenix Metro area and want a no-hassle cash offer on an old, wrecked, unwanted, salvage or burned car, SUV, van or truck, give us a call at I Buy Junk Cars. 480-771-8290.