Know the Salvage Value of Junk Car Before Selling in Adelaide

When your car is damaged beyond repair, your last plan is to sell it. It may not be cost-effective to repair the vehicle, but it retains some salvage value. Along with the value of its scrap metal, the vehicle may have some serviceable parts that can be removed and sold as repair parts for other vehicles manufacturers. Sometimes, old cars with minor damage are written off as the cost of repairs exceeds the current value of the vehicle. To know the salvage value of your junk car is a better action to do before selling it.CJ Scrap cars is a popular Scrap Metal Recyclers in Adelaide. Contact to avail instant service.

 

The salvage value of a car varies depending on the state, the year, make, model and condition of the car. To determine your car’s’ salvage value, look up the retail and wholesale value of a similar vehicle using resources. Find the average value by add these two figures together and divide the sum by two to get the car’s current market value. Contact the insurance company of your car for the percentage of market value they use for determining salvage value. Although the percentage can vary, typically it is around 75 percent of the market value. Multiply the car’s current market value determined earlier by 0.25 (1.00 minus 0.75) to find the salvage value. This result will be always lower than the current market value of the car. If the cost of repairs exceeds this amount, the car is written off as a loss.

 

When your car is wrecked, either you can opt to collect a settlement check from the insurance company, which is then sold to a salvage yard. Or can keep the vehicle and collect a settlement from the insurance company equal to the market value of the car minus deductibles and the salvage value of the car. You can repair it or sell it to a salvage yard and perhaps receive a higher price than the insurance claim.

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