Your Guide to Buying a Salvaged Car

Buying a new Peugeot isn't always in the cards for some individuals. New cars are expensive, and when you don't have a lot of extra money, you have to be a bit more creative with your choices. While used Peugeots cost significantly less, if you want to save even more money, you may want to consider purchasing salvage cars.

This thought may be a little concerning for you at first. The word 'salvage' may make you think of a car that can't be helped anymore, one that needs to be crushed, scrapped, and forgotten. This isn't always the case, though. A salvaged car is simply a vehicle that the insurance company no longer feels is fit to drive on the road. In most cases, the damage that has been done to the car generally exceeds its value by a certain percent, usually 75% to 90%. Because of this, the insurance company considers it a total loss and will sell the vehicle to a salvage yard.

So, why buy it?

We've discussed before in this blog what a write-off by the insurance company is, but to explain why a salvage car isn't a complete waste of your money, let's review.

Salvaged or written-off cars fall into four different categories:

• Category A- This car has been so badly damaged that little to none of the car parts on it can be salvaged. It can only be used for scrap and should never be driven on the road again.

• Category B- This type of car has expensive damage, but some of its car parts may be able to be salvaged and used again. Once these car parts are retrieved, the body of the car must be crushed so it is never driven again.

• Category C- With this vehicle, damage is significant and the cost to repair it may exceed the value of the car. If it is fixed, it may once again pass the MOT and appear on the road.

• Category D- The costs to repair this type of vehicle are significant compared to the value of the car itself. If repaired, however, it can pass the MOT and be driven once again.

The vehicles that fall under the first two categories are lost causes when you're searching for a new Peugeot to drive. They can't be repaired and shouldn't ever be driven. However, the latter two categories can be repaired.

When insurance companies consider the cost of repairing a vehicle that was damaged in an accident, they add the cost of the car parts, the labour, and legal fees. If you can do some of the labour yourself or find excellent prices for Peugeot parts online, you may easily be able to save a lot more money on the repairs than the insurance company would.

In addition, it's important to understand that not all salvaged cars are 'totaled' because of major defects with the mechanics or structure of the car. For instance, insurance companies will wait three weeks to see if a stolen car is recovered before they will pay the owner of the car for the loss. At this point, they write the car off and consider it a complete loss. Even if the car is found later, many insurance companies will still classify it as a salvage vehicle.

So, why should you buy a salvaged Peugeot? In many cases, you can get  this vehicle at a bargain price. Even with the cost of repairs and labour, you will often come out paying less than you would for the same car at a used car dealership.

FAQ About Salvaged Cars

• What do I do if my salvaged car doesn't come with a V5C? When you don't have a vehicle registration certificate, you must contact the DVLA. An application process is required, which can be done by phone or by filling out a V62 application. Keep in mind that obtaining a replacement will require a £25 fee.

• How do I check if the car has been salvaged? While it will be obvious if you're purchasing from a salvage car dealer, the insurance companies will sometimes sell a written-off car back to the original owner. If they attempt to sell it, they may not tell you it has been salvaged. A car background check or HPI check will often reveal a salvage status, but it may not always. Check the car thoroughly for signs that it has been in an accident. On Cat C vehicles, the logbook will state that the vehicle was substantially repaired or damaged in an accident. On Cat D cars, though, no mention of the damage will be in the logbook.

• Do I have to tell a buyer that my vehicle was written-off if I decide to sell later? Under the Trading Standards law, it is essential that you disclose any information that could affect the buyer's choice to purchase your car. This includes whether it was written-off in the past. Your best option would be to be honest, but reassuring. Keep all the paperwork you have regarding any repairs you've done to the car and any Peugeot parts you have replaced so the buyer will feel more at ease about purchasing your car.

• Who should I buy from? While you may be willing to be completely honest with anyone you decide to sell to later on, that doesn't mean everyone will be honest with you. If you aren't sure what you should be looking for when it comes to a salvaged Peugeot, don't buy from an individual. Find a reputable seller that will not only offer you a rock-bottom price, but will also have all the paperwork and information you need to feel good about the purchase you're going to make.

Looking to buy a Peugeot? If money is an issue, consider purchasing a salvaged one. Even with the repairs and replacement Peugeot parts you may need to buy, there's a good chance you'll pay less than you would for a used version.