Salvage value is the amount of money you can get for a car (or truck, or another motor vehicle) if it is not running and cannot be repaired. The valuation is most commonly used in insurance claims to estimate how much they will need to pay you. Let’s explore!
How does salvage value work for cars?
Salvage value for cars is the amount of money that the car can be sold for when it is not running and cannot be repaired. This is also referred to as an insurance payout.
When your car is fully equipped, the car manufacturer has already put a lot of investment into it so they are more likely to offer enough to cover their cost when it comes time for you to sell your vehicle. But when the car has extensive damage or no major components, then the salvage value will be lower.
For example, the 2011 Ford Explorer Sport was valued at $31,020 in its clean condition. With severe damage, the value dropped to $18,930. This is a 40 percent drop in price for this vehicle.
When it comes to selling a car with severe damage, you need to look at your local market and what is going on there. If the economy is doing well and people are looking for good deals, then a damaged vehicle might still sell quite well. But if a person is not desperate, they may simply turn down an offer that consists of just a few hundred dollars.
Fortunately here in Chicago, there is Cruz Recycling Inc. a junk car buying company that buys your used car and pays you cash at the best price in the market. No matter the condition of your car we make an estimate of the value of your car in its condition and give you the best offer.
How do you calculate the salvage value of a car?
The salvage value of a car is determined by many factors. Unfortunately, there are no standard formulas to calculate the value of a vehicle. So this will depend on your local market and what the current trends are.
It all starts with an estimate of what your car would be worth if it were without issues. If your car is running but has serious damage then the salvage value will drop based on that also. The buyer may purchase it for parts or get the engine running again, but an estimation for how much they will offer to buy it can’t really be tracked until you decide to sell it.
Here are several factors to consider when finding out how much your car is worth in its wrecked condition.
- The year, make, and model of the vehicle.
- Its mileage. How many miles did it have when it was crashed? How many more can you drive it before something else breaks down?
- The location where you are selling the car. Is this an area where demand is high, or low at the moment? How many similar cars are on the market right now?
- Damage to your vehicle. This includes exterior damage, interior damage, and mechanical damage. We will detail each one of these:
- The exterior damage is what you can see on your car. This means items such as the hood, fenders, and bumpers. The body itself does not necessarily affect the value of a car if it runs well and has many miles still left in it.
Can a car be totaled and still have a salvaged title?
A salvage title can only be given to cars that are fully destroyed. If your car is just badly damaged then it will not get that classification. Keep in mind that there is no set standard for how much damage is enough for you to receive a salvage title, so this can vary depending on your state’s regulations.
On other hand, if your car has been totaled it actually can get a salvaged title because of the damage range. You can also have to investigate this item in your state because conditions can varier in each estate.
Typically the less damage the better when you are looking at obtaining a salvage title because it is worth more when in good condition. If you want to know how much your car may be worth in its wrecked condition, contact Cruz Recyclinh Inc. here in Chicago. We work with many different types of junk metal recycling companies who can provide what will most likely be the best offer in your area.
What does it mean to be totaled?
The term “totaled” means that your vehicle would cost more money to repair than the value of your car. If you’ve had an accident, then insurance companies will use their own estimate of how much it will cost to fix the damage and determine if the figure is below what they need to pay you for the car.
If it is, then they will declare your car totaled and give you a check for the value of your car minus their estimate of how much the damages cost them to fix.
How to sell your salvage car in Chicago?
There are several ways to sell your junk car in Chicago and the best way is to contact a junk car buying company near you. You can find one online by typing in the zip code of where you live and seeing what companies come up.
A junk car buying company will buy your car for cash so you don’t have to deal with getting it fixed and trying to sell it back on your own. They will also take care of disposing of your old junk vehicle.
The first step is to make sure that they are licensed by the state department of motor vehicles or your state’s agency for recycling or environmental protection. A lot of people don’t think about this but if they aren’t licensed then you could be fined for trying to sell your car to someone who isn’t authorized.
The second step is to make sure that any company you work with will buy all types of cars, trucks, and SUVs. Most companies are okay with this but are sure to check before giving them your information or taking time out of your day to come down and see them.
Once you’ve figured out the company you want to work with, it’s time to call them and set an appointment. Make sure that they will make you a cash offer on the spot. Don’t settle for anything less than this because any other offer is probably not going to be very good.
When you’re at the appointment, bring your car title and registration so you can sign everything over. If they want to take a look at your car before giving you an offer, let them know that it’s not necessary. Remember that most places will give you cash on the spot so if they don’t then chances are that their company is not worth doing business with.
Sell your salvage car in Chicago today!
If your car is totaled and you want to sell this type of car in Chicago, then we recommend that you contact Cruz Recycling Inc. here in Chicago. We can help! All that is required of you is to contact us at 773-722-2828. and come into our location to get started.