If you were recently in a car accident, there's a chance that your car might have been totaled. When a car is totaled, the insurance company will refer to it as a total loss. This means that even though it might be possible to fix the car, the costs to fix it would exceed how much the vehicle is actually worth. Although ending up with a totaled car might sound bad, it can actually be a very good thing. Especially if you get a decent amount of cash after you sell a totaled car.
In fact, it's even possible to get more money for your wrecked car than what the insurance company is willing to pay. Interested in learning more? Continue reading and we'll walk you through all of the steps you need to know about in order to sell a totaled car for cash.
Confirm the Car is Totaled
Before selling your car, you want the insurance company to confirm that the vehicle is indeed totaled.
In the days following your accident, a claims adjuster from your insurance company will come to assess the condition of your vehicle. They will then run the model, make, and year of the car through a vendor database.
The database will calculate an estimate for your car's market value based on its condition, mileage, options, and other relevant factors. The database is also going to take in the demand for that specific car in your local market.
If the salvage value of the vehicle plus the cost of repairs exceeds its actual cash value (ACV), then it's usually declared a total loss.
The salvage value is the resale value of the car's metal as well as the car's parts.
How much will the Insurance Company Pay You for a Totaled Car?
If your car is completely totaled, you then have two options. First, you can take the cash settlement for the ACV of your car. Your other option is to retain the salvage, if your state allows it, and request that the damaged vehicle and salvage title be given back to you.
It's important to know that your car's VIN number will be entered into a federal database. So any future purchasers of your vehicle will know that it was damaged.
If the vehicle is owned by you, and you decide to take the settlement value, then the insurance company will pay you directly. However, if there's a lien on the car, which might have been issued by a credit union or bank, then the payment will go to the car's lienholder.
If there's any money left over after the lienholder has been paid back, then the rest of the cash will go back to you. All of these payments are made after the owner's deductible is subtracted.
Many people feel like the insurance company doesn't offer them a fair price for the vehicle. Luckily, you have other options than to take the insurance company's offer.
You can go to a reputable third-party business that will buy your car from you at a competitive price.
Sell Your Car Online
As the internet continues to evolve and grow, selling your car online becomes and easier and easier endeavor.
And if you think you can get more money by engaging in salvage sale as opposed to taking the insurance money, then is the best option for you. The first thing you're going to have to do is get the salvage certificate.
You'll do this by signing the vehicle's title over to the local motor vehicle agency. After you get the salvage title, go online and look for reputable online companies that buy totaled cars.
These companies are able to make money on salvage cars by breaking them down and selling their parts. Or they might repair the vehicles and re-sell them. So make sure to look around and compare prices for your car.
Also, when you're selling your car to a junkyard like this, you'll want to consider the possible cost of towing as well as the disposal of the car's non-metal parts, such as its tires.
Some companies will charge you premium rates to pick up and tow your car. But there are many high-quality buyers that will tow your car at no cost.
When the junkyard pays you for your car, you'll then have to sign the salvage title over to them.
Don't Sell to a Private Buyer
Selling a car in good condition is already hard enough. Selling a car that's not driveable is an absolute nightmare.
Individuals looking to buy totaled cars are almost always going to give you lowball numbers in hopes of taking advantage of you.
Most individuals who buy these kinds of cars usually plan to sell them to the junkyard and make a profit on them. Because of all of this, it makes sense and will make you more money to sell directly to the junkyard.
The Importance of Knowing How to Sell a Totaled Car for Cash
By knowing the various ways in which you can sell a totaled car for cash, you open up a whole world of possibilities. Many people just assume that they have to take the insurance settlement or end up stuck with a junk car.
But as we can see, that clearly is not the case. Nowadays, there are many other great options that can get you more money and are also convenient and simple.
Are you interested in selling your totaled car? Contact us today and see how we can help you?