How to Determine the Salvage Value of Your Vehicle In Adelaide?

Posted on 12th, Feb 22

know salvage value of your car

The process of valuing salvaged vehicles varies from insurance company to insurance company. It is not possible to determine the value of a salvaged vehicle using a formula or technique. Before arriving at a figure, many factors is being taken into account. Among the most important factors are the car model, year of manufacture, and make. You might also consider selling it to a car removal company, but you’re not sure if that’s the best option. Obtaining the salvage value allows you to estimate the highest possible value. You can accept the insurance company’s offer, repair the vehicle and keep it, or sell it for cash.

  • Examine the vehicle’s specifications

Every vehicle has its own set of unique features. The salvage value of a vehicle is being determined by factors such as its type, make, and model. It’s also a good idea to research the car’s retail value at the time it’s purchased to see how much it might be worth now.

  • Get the retail value – and then cut it in half

To determine the approximate value of a salvaged vehicle, subtract 50% of the retail cost.
It is important to note that the deduction does not provide an actual salvage value. This varies depending on the condition of the vehicle. Insurance companies deduct 75% to 80% of the retail cost. Reputable car removal companies like Car Recyclers Adelaide provide salvage value of cars. All it takes is a quick phone call to reputable cash for cars Adelaide for car buyers to get a car valuation.

  • Determine the current market value

You can calculate the current market value. By adding the retail cost to the insurance company’s estimated value and dividing it by two. It is a simple procedure that does not need the compilation of many figures. Obtaining the necessary information is also not difficult. The percentage of depreciation is sometimes used to calculate market value. Use whichever method feels more natural to you; both are effective.

  • Multiply the market value by the percentage offered by the insurance company

Once you’ve determined the market value of the vehicle, the rest is simple. All you have to do is multiply it by the insurance company’s rate. As a result, the approximate value of your car is being determined.

The method you use to calculate salvage value should meet your needs, as there is no specific formula. The process can be time-consuming at times, so if you don’t want to do it yourself, you can always contact Wreckers.

Also, keep in mind that you can choose to keep the vehicle and repair it for future use. There is no doubt that these two options can be costly. Yet, using cash for car services will save you a lot of money because you won’t have to pay any fees. If your vehicle meets the requirements, you don’t have to accept a salvage value, which is too low. Yet, if you want to salvage your vehicle for a reasonable price, the above procedure is helpful. It ensures that you don’t settle for less and end up losing a lot of money.

Variables Affecting Vehicle Salvage Value

You should keep in mind that a vehicle’s salvage will vary. Depending on its condition also its make, manufacturing year, condition, and model. The following are the factors that influence the method of calculation:

  1. Check the prices of other cars of this type with reliable sources.
  2. Divide the total by two to determine the car’s current market value.
  3. When you want to know the percentage of your car’s market value you can contact your insurance company. Though the percentage varies, it is 75% of the market value.
  4. The next step is to multiply the before the determined present market value of your car by 0.25 to its salvage value.
  5. Calculation’s result will always be lower than the car’s current market value. When the cost of repairs exceeds this amount, the car has declared a loss and written off.

Situations in which a car’s salvage value is being calculated

If a damaged car requires $8000 in repairs and has a trade-in value of $3500, the insurance will declare it a total loss. Yet, the car insurance company may also use other factors. They might be databases from a third-party vendor, to determine the value of a damaged car. The software aids an insurance adjuster in calculating the cost of labor and parts in repair. Insured drivers believe such systems do not provide accurate cost projections.

Most state laws need car insurance companies to declare the vehicle a total loss. When the deductible on a car insurance policy is $1000, the insured receives a check for $2,500 only. The calculation accepts the car’s actual cash value less the deductible amount.

An insured kept a policy with a higher deductible than average to save money on his car insurance.