How to Determine the Salvage Value of Your Vehicle?
Valuing a salvaged vehicle is a complicated process and varies from one insurance company to another. There is no specific formula or technique used in calculating the value of a salvaged car. Many variables are considered before coming up with an amount. Some crucial factors include the car model, year of manufacture and the make among others. Also, you could be thinking of selling it to a car removal company, but you are not sure if that is the right decision. Getting the salvage value helps you estimate the maximum value that you could and help you choose between accepting the insurance company’s offer, repairing and retaining the vehicle or getting rid of it for cash. Because there is no known method of calculating the salvage value, there are a few guidelines that can be used to come up with a reliable estimate. Read on to find out what they are.
Check the car’s details
There are special features for every vehicle. Aspects like the type, make and model are essential in determining its salvage value. Also, it’s good to check the car’s retail value at the time it was purchased to give you a rough idea of how much it could be worth at the moment.
Obtain the retail value – and reduce it by 50%
One of the methods of getting a salvaged vehicle’s approximate value is by automatically deducting 50% from the retail cost. It is good to note that the deduction does not give an actual salvage value and it fluctuates depending on the damage of the car. Insurance companies often deduct 75% to 80% of the retail cost. You can also get your vehicle’s salvage value from reputable car removal companies. A quick phone call to a reliable cash for car buyer is all it takes to obtain a car valuation for your scrap car.
Calculate the current market value
By adding the retail cost to the insurance company’s estimated value, then dividing it by two, you already have the current market value. It’s an easy process and does not require compiling many figures. Also, obtaining the necessary information is not hard. Sometimes the market value can be determined by using the percentage of depreciation. Use whichever process you find comfortable, as both work.
Multiply the market value with the insurance company’s percentage
Once you’ve obtained the market value of the vehicle, then the rest is straightforward. All you have to do is multiply it by the rate used by insurance companies. The result becomes the approximate value of your car. When getting the percentage, ensure you confirm with different companies because they vary from one another. Checking from one place to the other provides you with essential information so that you don’t appear clueless. Also, when you know your numbers well no one will try taking advantage of you.
Determining the salvage value does not have a specific formula and whichever you decide to go with should meet your needs. The process can be tedious at times, and if you are not interested in doing it yourself, you can always get in touch with a trusted valuation company.
Also, remember that you can opt to just retain the vehicle and repair it for further use. There is no doubt that these two options can be super expensive. However, going for cash for cars services will do you a great deal of good as you will not have to sustain any costs. If your vehicle meets the required standards, you don’t have to settle for a salvage value, because it’s often too low. However, for a fair amount to salvage your vehicle, the above procedure is beneficial and ensures you get the best deal possible. It makes sure you don’t settle for less and incur huge losses.