If your car has been totaled or you don’t think it’s worth it to pay for costly repairs but think someone else could benefit from it, it may be time to put your car up for auction at a salvage yard. Before you do this, there are a few things you should know about the auction process, so that you’ll know what to expect.
Classifying Your Car
You’ll need to fill out an application for a salvage title according to the laws of your region, and surrender the license plate and registration of the car. If you’re restoring or remodeling the car before selling it, you’ll need to have it inspected by an inspection station that is approved in your area before you can put it up for sale. In some cases, you’ll have to tow the car to the inspection location, even if the car is drivable. Even if towing the vehicle to the inspection site isn’t required, this is likely the best option, since these increases the chances that the car will pass inspection.
Know the Selling Rules
You have to know the salvage auto selling requirements and regulations for your state or region before you can submit your car to an auction. You may be required to provide the buyer a written statement detailing any liens and/or the title status of the car before price negotiations can begin. If you neglect to reveal our car’s salvage title status is viewed as a misdemeanor in most regions, and you could be charged a fine, so be as detailed as possible when interacting with potential buyers.
Selling Your Salvage Automobile
If your current car is already a salvage vehicle and you decide to put it up for auction again, make sure that you’re OK with the fact that you won’t be able to sell the car for its actual worth, even if you’ve done extensive repairs on the car. A savage title is permanent, but it can be noted that you’ve made repairs to the vehicle so that buyers know the car is in decent condition.
Once you have a salvage certificate, you may also want to consider selling the vehicle at a dealership. Explain to the dealer that you’ll sell the car for cash and be honest about the fact that the vehicle is totaled. A number of dealerships will be happy to take the car off your hands, since they’ll be able to make a substantial profit from it if the damage isn’t too severe.
You can also sell your salvage vehicle privately, but this may be a bit of a challenge. Since your car it totaled, the insurance costs will be higher, and you’ll need to be upfront about this with any potential buyers.
As a last resort, you can sell the vehicle to a salvage yard so that it can be used for parts. You can classify the car as a tax write-off, and most salvage yards will afford you the convenience of coming to pick the car up for you.