Just making this quick video. Funny thing, I’ve been getting a couple of questions. Actually, three guys within the past week asked me the same question.
They noticed that salvaged cars were selling for quite a bit cheaper on Craigslist or in the newspaper or just out on the street, people been seeing like “for sale” signs and contacting people about cars. And a lot of them are salvaged titles.
Should you invest in a salvaged title car?
My reply is going to be, if you’re going to keep it for the long term and if you could really get it for a good deal and you plan to keep it and drive it for a couple of years and really use it up, then you could invest in a salvaged title.
But I really don’t recommend buying salvaged title cars to actually flip for profit because a lot of people are aware of salvaged title cars.
They know something’s been wrong with it. It’s been in an accident or flooded out or vandalized. Those are the most common reasons why they would classify the car as salvaged.
So they are a lot harder to sell. You are not going to get top dollar for it if you’re selling it in a private party market or traded in a dealer. You’re going to get low value.
If you’re a complete newbie in buying and selling cars for profit and you want to make money with this. I would highly suggest to stay away from salvaged title cars.
You’re going to run into more issues and have a harder time selling it than what you really should go through.
If you’re getting a salvaged title car, even if the car is rebuilt. They have something called the rebuilt title. That means that it was salvaged. The auto body shop rebuilt it, had it certified and it’s on the road. But it’s still classified as salvaged rebuilt. It will say that on the title of the car.
So, that’s where I’m going. If you’re going to keep the car for a period of time and use it. I bought a couple of salvaged cars but I haven’t been getting one lately. I just don’t want to get into them because of resale value. Even if you get a good salvaged deal at the auction or something.
Let’s say as an example, you went to an insurance auto auction and picked up a 2012 Nissan Maxima with “front was smashed” salvaged title. You got it for $3000.
Maybe it needed the front right frame to be cut and be pulled out. New bumper support, new bumper cover, new front fender and paint the whole front. Maybe even touch up the hood and paint the hood.
Maybe it cost you $2000-$2500 to fix it if you did it yourself. If you take it to an auto body shop, you’re probably looking at $5000 to have something like that fixed.
So, let’s just say hypothetically, you invested $7000-$8000 in it. It’s a 2012 salvaged title with like 40,000 or 50,000 miles on it. You’re going to be able to sell it because it’s fairly new.
Not too bad miles, saying it had $30,000 miles on it. But you’re going to be sitting on it longer. Even if you did a great job pulling out the frame, getting it aligned and everything. Professionally certified and inspected through a licensed salvaged rebuilder.
The thing is, an auto body shop would fix that salvaged car. Then if they don’t have a salvaged rebuild license, they can’t certify it to put it back on the road. They have to take it to a salvaged rebuild certification company where they could certify it.
Where I’m from, you need a special pink slip then you can actually register it. Without that you can’t get the car registered and put it out on the road.
You’re going to sell it but you’re not going to make as much profit on it if it was a clear title. With a clear title, you could sell it.
The kind of shady thing about that is sometimes it’s not recorded in the carfax. If it’s a salvaged title, it will be recorded. But if it was in an accident, they don’t record it because maybe it was their fault like they drove it in a ditch or something and they don’t want to go through insurance.
A car could be in a totally messed up damage and not even show in a carfax report. And it happens a lot.
I have a lot of damaged cars that I bought to repair and it was a clean, clear title. I fixed and sold it. Nobody knew it was ever in an accident. There are cars like that.
In a nutshell, the point of this video is, if you’re a newbie, I would stay away from salvaged.
If you know what you’re doing, if you think you’re going to drive the car for a long time and get its use, get its value out of it, then it may be worth it to invest in a salvaged car.
I still have one, I still have my Toyota Rav 4 2001. I bought it at an auction.
I drive that thing to the ground. I beat it up. It’s my parts go-getter, just my beater car. I think I paid $3200 for it in 2004.
It was just a few years old when I got it. It had 32,000 miles on it. Salvaged title. It didn’t need an airbag. It went over some rocks in a ditch and it damaged the underframe.
So I had to put a new crossmember underneath, lower control arm and all that. And I fixed up and it ran beautiful. And I still drive it.
If you want to learn more, and learn how you can buy and sell cars for massive profits from your own home. Or dorm if you’re a college student, check out the F1 AutoCashFormula 2.0 – How To Buy and Sell Your Cars course.
We’re giving away free Bikini Report on how you can get started in the private party market without a dealer’s license.
And if you want to get big and you’re really into it then I have all dealer info that you need inside of the course that will help you get to the next level.
But the first step is, see if you like doing it. Put your feet in the water first. See if you like buying and selling cars. Do one, or two or three. Make a couple of grand, see how it feels.
It’s a really cool feeling knowing that you can go spot a deal out on a weekend, grab a car, do a quick spruce up to it, do a couple of things, post a nice ad on the internet – a free ad and make $1000, $2000 or $3000 profit, just like that. Go to a vacation or whatever you want to do.
Anyway, it’s Tony. Hope you like the video.
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