There goes a saying that once a car leaves the retailers store and travel few miles there is depreciation in its actual value. Well, if you are purchasing a new car, then you are supposed to pay its retail price, but as soon it hits the road and covers a few kilometers on the road, then it is priced based on its wholesale price. It has been noticed that generally the value of the car depreciates by 15 to 20 percent each year. The difference in price between a new vehicle and that of an old one is almost around 20 percent in some cases. So, if you are planning to buy a new car, then buy one that has travelled couple of miles. It can save you few thousand dollars.
Overview of these cars
A good way to save money is to buy salvage cars. A vehicle gets this title if it has been damaged and has been declared as a big loss by the insurance company. The criteria of determining the title differs based on the state that you belong to. A vehicle with this title can be easily repaired, but owing to its low price, but many vehicle owners prefer to buy it. There is a host of reasons for a car to get this title.
- Damage caused by flood
- Hail damage
- Recovery after theft
Few points to remember
Generally cars with salvage titles come at a price that is two third of the original price. If you have a budget constraint, then this can be a good option for you. Few dealers only focus on selling salvage cars. While purchasing these cars, there are few points that you need to remember to reduce future hiccups.
- While purchasing this car, have it inspected by a professional. They can assess whether the repairs were done as per the standard or not.
- To assure the quality of the car, it is always preferable to buy it from a reputed dealer.
- You can also ask for the document related the original repair estimates as you can have a glimpse of the nature of the damage that it has actually endured.
Ways of saving money
Assessing insurance is another way of reducing the cost of a new car. If you can adjust your insurance well, then you tend to pay a less amount of premium for your policies. Often the dealers tend to sell accessories and add on for new cars, but if you buy after-market variety of the same, you can save some money. Many of the insurance companies cover the cars with salvage titles, but if you land up in any accident the compensation that you will receive from these companies will be comparatively low. It is advisable not to invest on products and items that do not have any resell value. You can also check out the best time to buy cars so that can avail discounts and rebates.
Follow the regulations
Few of the retailers have special packages for salvage cars, which includes providing extended warranty. This reduces the risk attached with these cars. Also ensure that these cars have gone through strict certification tests. Always seek reports pertaining to the vehicles history. These cars follow the regulations as laid down by National Automobile Dealers Association Appraisal guides. The title of the car is rebranded only after it has passed the inspection and it abides by the safety standards. Often these vehicles are termed as rebuildable by the dealers, but this can be determined by the nature of the damage that it has gone through.
The value of these cars is determined by the regulation and also the cost incurred by the dealer for repair. Few of these cars are also auctioned through online stores. This is an effective way of saving money.