Friday, August 19, 2022
Insurance

Insurance auto salvage auctions not always the best idea

Buying major purchases such as cars at an auction is seen as the most cost effective option but insurance auto salvage auctions are not always the best idea nor the most cost effective for that matter. Sometimes one is just better off buying a car the old fashioned way, simply waking into a reputable dealership, looking at the cars on offer, test driving the car that has piqued your interest, negotiating a good deal with the dealer, making an offer and indeed driving away with the car of your choice.

Cars salvaged from accidents and taken to auction by insurance companies who wish to recuperate their costs do not allow you the critical steps mentioned above. As it’s an auction one cannot test drive the goods on offer and probably for good reason since the damage sustained by the vehicle may be too extensive for the car to function at all. So one goes in blind at an auction of this nature where the risk of buying a car that will require a lot of repair and consequently more money is too high. And that is not the only cost related downside, for competing with multiple bidders at the same time is sure to push the price up.

So while insurance salvage auctions may seem like a good idea at first glance, they are actually a financial trap waiting for the unaware to fall right into.