Register
The first step is to register with an online auction site. You need to register with these websites to be able to bid on the cars listed for auction. It is a simple process and usually involves paying registration fees in order to start bidding on a vehicle.
Kind of vehicle
There are various titles that are listed at the auction by insurance companies, banks and dealers. These titles include repossessed, clear titles and salvaged titles. Clear titles are listed by banks and insurance companies via dealers.
It is an exclusive list
After registering, you will have access to all the vehicles that have are available. Before you place a bid, ensure that you check the photographs of the car to determine the type of damage it has suffered. In addition to this, it is advisable to get information related to the cause of damage. This is because some people don’t prefer cars that have been damaged by flood or fire. The extent of damage, the amount of work and money required to make the car road-worthy are some of the essential factors that you need to remember before placing your final bid.
Budget yourselves
A salvage car does not become road-worthy right after purchase. It takes time and money to make it road worthy. When your bid online you need to take into consideration the additional costs for repairs and insurance. All this requires money and if you spend your complete budget on the buying the car you might have to wait till you make the money to necessary repairs before you are allowed to drive the vehicle.
Post bidding payment
In case you win the bid, you need to pay for the car usually by the end of next working day. The payment can be made via wire transfer or check. In case of failure to make the payment, auction houses charge late fees. This is another reason to budget yourself before you place a bid so that you do not end up paying more than you can afford.
Insurance
Insurance companies do not offer complete coverage to salvaged cars. You need to shop around to know the best insurance option that suits you and at the same time premium does not burn a hole in your pocket.
Consequently, even the DMV has a separate set of rules for vehicles that are salvaged and rebuilt. You need to check the local DMV rules and ensure that your vehicle fulfills all the requirements.
Conclusion
Junk or salvaged cars sales are a good market if you want to a rebuild classic car or you want to flip it for profit. Nevertheless, remember there are pitfalls so it better to be safe than sorry and follow these tips as guidelines.