Salvage cars or insurance cars are all those vehicles that suffered accidents or any situation in which they were involved, but later the insurer manages to rescue them and sell them at a much lower price than the commercial one.
At the moment that a unit is considered a total loss, precisely from there, the insured person will transfer the ownership of the vehicle directly to the insurance company with whom they acquired the auto insurance, this after it makes the corresponding payment of the compensation.
These cars are marketed by the insurer after suffering an accident, such as:
- Total loss due to damage : The vehicles that are considered as total loss, after receiving the valuation by the insurer, will be put up for sale where the total amount will partially exceed the percentage of the insured value, which means that the price Final can decrease from 65 to 80% of the commercial value , this is worth mentioning that it is in accordance with the policies or there will be certain variables taken into account.
Therefore, the companies will calculate the value of the labor for the system and the value of the spare parts, although there are also insurers that auction them and the buyer is in charge of repairing the damages that the unit presents.
- Recovered Vehicles: When an insured reports the theft of the insured car, and the insurance company gives the ruling in favor of the client, the corresponding compensation will be granted , however when these are recovered, since insurers normally work with companies that are dedicated to the recovery of these units, the insurer will automatically sell it in the conditions that it is found and it will also be at prices according to the commercial value or, at a lower cost.
In Mexico, insured cars are an issue that is not yet widely heard or used by customers, since according to insurance companies, it depends largely on the policies that exist in them, as well as the operations they carry out, since Some make auctions among their own employees, and others if they sell them to the public, same sales that are made through internet sites or by direct contact with the insurer, since sometimes these vehicles are used for the coverage of substitute cars that they are given to customers.
In reality, insurance cars are extremely profitable, since you can acquire a recent model vehicle, and at a price that in relation to the commercial value, can decrease from 30 to 60% of what is stipulated, but you must consider that will also need maintenance, but also in case they have gone through a recovery, the legal procedures will take longer, while those that resulted in total loss need extensive repairs on their auto parts, paint and even mechanical systems, while its procedures will be simpler.
There are also many agencies in our country that focus on the sale of insurance cars, where they are the ones who make the applications for the car’s title deeds, as well as all the corresponding procedures, therefore you will be supported.
But it is also important that before making any transaction, you consider reviewing the car in question for a theft report that it presents in REPUVE, mainly when the agency that is selling it has not made any changes, and after that, take it with a mechanic to tell you about the condition of the unit.