Review on salvage cars and salvage auto auction

Purchasing a salvage vehicle is not entirely a bad investment, but at the same time, the entire system, by nature, represents a risky venture. In one sentence, salvage cars can be defined as totaled cars that have survived some kind of accidents. In simplified words, a totaled car is something that has been valued almost 80 percent worthless by its insurance company. The cost of repairing such cars would be higher than their real cost in the market.

Over 50 percent of such totaled cars are sold to scrap metal dealers or junk yards. But if at all such cars are rated as having some value, then they are refurbished and restored well enough to fetch a certain minimum resale value. Such cars have compromised performance capabilities and hence are labeled as salvage cars.

Salvage cars are mostly sold at special auto auctions meant for such damaged cars. Most of the salvage car auctions are opened to auto dealers and dismantling services. However, certain salvage auto auctions are also open to public bidding. At such venues you get to buy cars at dirt cheap rates. Auto dealers and auto restoration companies buy such salvage cars in wholesale and work on them. They either remove and reuse the working parts available in such cars or restore the cars using quality accessories and replacements. These cars are refurbished and retouched to give them a brand new look. These cars are then sold to public at high prices.