If you’ve got a car with a salvage title, you might be wondering if you can sell it. If yes, the next question is how you should go about selling it.
There are some things to keep in mind when trying to sell such a car, but the good news is, it’s not impossible.
Below we outline the process of how to sell a car with a salvage title. But first, let’s first look at what a salvage title is exactly.
What Is a Salvage Title & What Does It Mean?
A salvage title is a classification assigned to a car that has been declared a total loss by an insurance company. This may be due to the car being involved in an accident or some other form of damage.
Essentially, when you sell a car with a salvage title, you’re selling it “as-is” and you must be upfront about the fact that is a salvage title vehicle. The buyer must take all responsibility for the car and any repairs that may be needed.
Can You Sell a Salvage Title Vehicle?
It’s important to understand the laws around selling salvage title vehicles in your specific state.
You may want to contact a lawyer or at least refer to the motor registry in your state if you want to clarify any of the processes outlined below. That way, you can be sure that you’re following all the necessary steps and regulations to make sure everything is done correctly.
Step 1 – Research The Value of Your Car
When you’re looking to sell any car, it pays off to do your research first. Whether you are setting an asking price or negotiating with a prospective buyer, it pays to know the market value of your vehicle.
It is easy to find out the fair market value of your car either by using online resources or speaking with a professional at a dealership – this can help ensure you set a competitive yet profitable price.
However, keep in mind that your vehicle has a salvage title, and this will significantly drop its value. Depending on the damage or reason for the insurance company to deem it as a right off it may be too difficult to repair for any new owner.
Also, depending on the extent of the damage, it may not be possible to re-insure such a vehicle. So again you need to take these considerations into your research of its real market value.
Step 2 – Find A Willing Buyer
If you want to get a great price for your salvage title vehicle, this step can be challenging. As mentioned above, most car owners do not want to purchase vehicles with damage. But you do have some options.
Depending on the make and model of your vehicle, you may be able to find car clubs that love your vehicle. This can allow you to find a buyer who wants to buy the vehicle to restore it or use it for spare parts to restore another.
Another option is to sell it to a scrap car buyer so they can dismantle it and recycle the scrap metal.
A third option is to find someone who wants to buy the car to use on their own private property. This way they can use it on their own land and will not be bothered that it may have challenges passing registration or getting insured in the future.
Step 3 – Prepare All The Necessary Paperwork
Before you can think about the sale, it’s important to make sure that all the necessary paperwork and documentation is taken care of. Failing to get this done correctly could result in a delay or setback for your sale.
Put together a list of documents you’ll need to collect and complete, such as vehicle registration, insurance form showing salvage title, transfer of ownership document, etc. You may also want to create a receipt for your new buyer however this is not usually legally required.
Completing this step will save you time and hassle in the long run and ensure that the sale process runs smoothly.
Step 4 – Receive Payment & Transfer Ownership
As the previous owner of this car, the process of transferring ownership and receiving payment can be daunting. It’s important to thoroughly document the transfer of ownership, making sure all necessary paperwork is completed properly and submitted in a timely manner.
However, before transferring ownership it is important that you receive payment first. How this occurs should be agreed upon first as part of the sale agreement and could be bank transfer, bank cheque or physical cash.
Once the money has been received into your hand or bank account you can safely complete the transfer of ownership documents and provide the new owner with the car keys.
Selling a salvage title vehicle can be a daunting process. But if you are willing to put in the effort and research, it is possible to find a buyer willing to purchase your car.
Be sure to do your research on the market value of the car and what documents you need before attempting to sell it. Also, make sure that payment is received before transferring ownership and that all paperwork is completed correctly.
Following these simple steps can ensure that selling your salvage title vehicle is as smooth and successful as possible. Good luck!