While a salvage vehicle may be deemed a total loss by an insurance company, that doesn’t mean the vehicle doesn’t hold any value. The value of a salvage vehicle will depend on many different factors, such as the insurance company valuing the vehicle, the type of vehicle, the make and model of the vehicle, the amount of damage, and the current state of the vehicle. As such, there is no standard formula for determining a salvage vehicle’s precise value. However, there are several ways that you can determine a rough estimate of its worth. Whether a vehicle you own was salvaged or you’re looking into purchasing a salvage vehicle, you must have a good understanding of the vehicle’s value so you can make the best financial decision possible. To learn how to determine the value of a salvage vehicle, continue reading.
The first step to determining the value of a salvage vehicle is to get the details regarding your vehicle in order. The value of a vehicle can be impacted by a wide variety of factors. However, the most influential variables include the vehicle’s year, its make, and its model. Such information can typically be found in the vehicle’s owner’s manual or on the salvage title of the vehicle. Additional details that influence a salvage vehicle’s value include the amount of mileage on the vehicle at the time of the accident, any optional equipment, and the trim.
Using the information you gathered regarding your vehicle, you can start determining its current market value if it didn’t have a salvage title. Websites such as Edmunds.com, NADA.com, or KBB.com can be helpful for completing this step. All you need to do is input the information about the vehicle that you gathered in the first step. Then the websites will give you an estimate of the retail value and trade-in value of the vehicle. Once you’ve determined both values, add them together and divide them by two. Doing so will give you an estimate of the vehicle’s market value.
The percentage of market value that is used to calculate a vehicle’s salvage value will vary depending on the insurance company. However, the percentage is typically around 75 percent of market value. To get a rough estimate of the value of a salvage vehicle, multiply the vehicle’s current market value (determined in step 2) by 0.75.
For a more accurate calculation of your vehicle’s current market value, you could contact your insurance provider and ask them for the exact percentage that they use to calculate salvage car values. Then simply multiply your vehicle’s marked value by that number. Upon doing so, you will have an estimation of the value of the salvage vehicle you’re considering.
If you’re interested in purchasing a salvage vehicle, shop AE of Miami. We offer a wide variety of salvage title vehicles for sale—including wrecked luxury or exotic vehicles. As the premier dealer of damaged vehicles in the United States, we ensure full transparency by clearly displaying the damage type and vehicle condition on all of our listings. While we are located in Florida and Colorado, we ship vehicles worldwide and export our inventory from all major US-based ports. For more information regarding our products, contact us today.
