Is it Worthwhile Investing into a Car That Has Been Damaged in a Crash?
There are plenty of benefits why you might want to buy a car in an online auction. It could be to grab yourself a bargain that you can then drive around, or it might be as a way to make some money by selling it on.
The thing is, with so many cars at online auctions, like vehicles on Car.co.uk that are damaged or that require work, it can be hard to know whether or not it is worthwhile actually making the investment and buying a car at an online auction. So, let’s take a look at the basics that you need to think about.
Always take the time to understand the classifications
The thing that you need to keep in mind when it comes to buying a car at an online auction, are the classifications that are applied to cars which are damaged. These categories identify the condition of the car and will also have a bearing on whether or not you can sell them on.
You should avoid buying any cars that fit in category A. These cars are damaged beyond all repair and should only be scrapped. You cannot even take the parts from these cars, so there is no chance that you can make any money from them.
A car that fits in with classification B has been damaged too much to repair and be road-worthy, however, the parts from the car can be salvaged if they would work in another car. Both S and N category cars can be sold on, however, you will need to ensure that any damage or broken parts are repaired and that the vehicle is road-worthy.
Find out what needs to be replaced or repaired
When you are thinking about buying a damaged car at an online auction, then you need to make sure that you ask the right questions. You need to know exactly where the car is damaged, and what work needs to be carried out. An insurer isn’t going to disclose this information, but, if you ask the vendor the right questions, then there is a good chance that you will get a clearer picture on what the issues are and whether or not you are going to be able to fix them ready to sell on.
Don’t blow your budget
The thing about online car auctions is that it can be all too tempting to make a huge purchase, with a view to making plenty of money. However, the last thing that you are going to want is to spend out money on a car, only to find that you cannot sell it on. If there are any doubts in your mind, then you need to take the time to think about it, never rush in. Always take the space to consider whether or not you are making the right choice.
So, is it worth it?
We cannot tell you whether or not it is a good idea to buy a car that is damaged and then work on it to sell it on. If you can afford to buy the car, if you can afford to repair (or know how) and you have the dedication to them sell it on, then this can be a great investment. It isn’t always an easy way to make money, but the truth is that it can work out worthwhile in the end.