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Things to Do Before Starting your Salvaged Car Business

In most states, it is absolutely legal to buy and sell salvage cars but it is essential on your part to find whether your state considers it as legal and what exactly are the laws that you must necessarily follow. Starting a salvage car business could surely be a profitable one but it could be pretty time-consuming. You need to do your homework and be fully prepared. You could obviously, make money from your business of buying and selling salvaged cars but you do not wish to end up getting caught in a host of legal issues. Here are a few things that you need to do before actively starting and getting involved in the salvaged auto business.

Do a Background Check & Find out If the Car Is Actually Totaled

A totaled vehicle would be costing an insurance company definitely more for repairing as compared to the actual value of the car. It implies that the repairing expenses would be exceeding the worth of the car. You must have your vehicle thoroughly examined by a qualified insurance agent and determine if the vehicle has actually been totaled.

Obtain a Salvage Certificate

Once the vehicle has been certified by the insurance agents as a totaled one, you need to contact the DMV with your application for a salvaged title for your vehicle to be put up for sale soon. The DMV would be issuing a salvage certificate. However, before starting your business of buying and selling salvaged cars, you must understand clearly that even after your vehicle has been restored and rebuilt, and it would always be regarded as a salvaged car.

That implies that whoever ultimately owns the vehicle would be getting PLPD insurance on this vehicle. However, rates for comprehensive and collision insurance are bound to be quite high in this case provided that sort of insurance cover is at all available. This would automatically imply that any warranties that actually were applicable on the car prior to the accident would no longer be valid. Get in touch with the reputed and reliable Ideal Auto USA if you wish to choose a car from an extensive selection.

Do the Repair Work and Retitle 

Once you obtain your salvage car, you could get it repaired and rebuilt. You may do the overhauling job yourself in case you are inclined mechanically or alternatively, you may hire the services of a well-trained mechanic. However, do not forget that different states would be having a different set of rules, regulations, and laws relating to the rebuilding of salvaged cars. Only if there is compliance with these existing state laws, you would have the option of getting the vehicle retitled as a rebuilt car.

Conclusion: Sell the Rebuilt Car

Once you follow all the tips given above, you could consider selling the salvaged and rebuilt car to an auto dealership for cash. Alternatively, you may put up your car for auction on your own, as a private car seller. You may consider selling it to any private buyers. If you are unable to find a buyer, you may sell the car to a junkyard or even consider donating it to a reputed charity and enjoy a tax credit.

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Written by Eric Reyes

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