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Get to know the used car trading situation today

by Media Pal
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The situation of the used car trade is always dynamic, depending on the rules that apply and also on the changing situation; social, economic, political and so on. In this article we will highlight three important points in the sale of used cars today; junk car trade, crashed car trade and a kind of unlawful practice called curbstoning. We will first discuss junk cars and how we can deal with them. After that the topic will be continued with crashed car trade and curbstoning. Curious? Keep reading!

1. Junk cars

Is my car junk? How can I use it to make extra money? Can I get cash for junk cars near me?

At what point would you be willing to keep a car? Until it can go no further or falls apart?

Believe it or not, many car owners keep their vehicles for long years, even decades. In fact, the average time a driver keeps a vehicle is 15 years, according to a recent study.

For a car to be considered junk, it must be unusable or about to die … literal, but it could also be in salvage or crash status. So the logical thing now would be to get rid of it in some way or another so as not to generate extra expenses or cover space in a garage.

Although this can sadden many people, it must be remembered that the death of a car is part of its life cycle, in addition to the fact that the event presents an exciting opportunity to buy a new car. Also, getting rid of a car doesn’t have to be a total loss, since a car owner could easily recover money by selling it.

A person can sell a junk car in many ways, in fact there are special places where these cars are bought. Here we share some of the places or options that a driver has to generate money with his junk car.

1 – Sell it to a pick-a-part

In the United States there are some places – adored by many and seen as dirty by others – where dismantled and forgotten cars abound. These places are popularly known as “pick-a-part” or “pick-n-pull” and their name comes precisely from the practice of accessing the cemetery full of vehicles to collect (with your own hands) auto parts that can be used to repair another car.

Does the car need to have the title “salvage” (or salvaged) if I want to sell it as scrap metal?

2 – Sell it for parts

Although it is more difficult, you could sell your junk car parts separately, although you would need an interested buyer – or several – to carry this out. Internet sites are also a great help in marketing them.

3 – Sell it to a car auction

Although you would need to contact the car auction directly, some of these establishments may be willing to pay something for your car. But given the low price they sell it for, chances are they won’t pay you too much for it.

2. Crashed car trade

Crashed cars are included! In the used car trading situation, junk cars still have a “selling price”. In other words, they are also still attractive to certain segments. In fact, crashed cars are included.

Why are crashed cars being resold?

Crashed cars that have been declared as a total loss by an insurance company are called salvage because they can no longer be used for road use and because their frame has been severely damaged and may not withstand a second accident.

A unibody frame is designed to collapse upon impact to absorb shock forces better than a body-on-frame vehicle for added safety. Unfortunately, this means that a unibody vehicle can more easily develop major structural damage in a crash.

However, these cars are resold at auctions by companies to recover some lost money, and after having been repaired and passing a mechanical test, they are put back on sale like any other used vehicle under the name of rebuilt. 

You can identify if a car has suffered some type of damage to its frame or structure easily, just look at its name in the title, and buying a car that was rebuilt is something that many people do not care about, as its value is much cheaper than its market price.

Is it worth buying a used car if you have been in an accident?

It depends on the buyer and the use that will be given to the vehicle. If a car was in a light accident that only resulted in broken glass or damage to the paint, then the vehicle does not have to be devalued and may be a good option to purchase, especially since these damages do not appear in a vehicle report.

However, if the collision damage was severe and the vehicle went through a rebuilding process, then perhaps it is best to consider purchasing this vehicle because its value has been dramatically depreciated and in many cases insurance companies they will refuse to cover the vehicle under full coverage – and even liability.

3. The curbstoning practice

In fact, the used car trade is also vulnerable to gaining legal restrictions. That is why curbstoning practice emerged. This practice is common in the used car trade. Local dealerships are tied to various regulations by the local government. They must purchase various licenses and insurance, in addition to taking courses that allow them to conduct their business. The car sales practice is so regulated that the government knows when a car is sold, how much time it has left to be registered, and how much money is owed to the state in taxes, so cheating on it is not easy.

On the other hand, a practice has been discovered that avoids the strict regulations of the state and endangers the wallet of consumers of used cars, in addition to making them go through a tedious problem of paperwork and procedures that they should never have done in the first place. 

It is known as curbstoning (curb) and occurs when a dealer (dealership) sells a car to a buyer as if it were a transaction between private people, that is, the dealer impersonates a common seller.

What’s wrong with this? In addition to various legal regulations being evaded, the dealership leaves the problems of title processing, payment of taxes and other formalities that it must carry out to the responsibility of a buyer.

Curbstoning is when a dealer impersonates a private seller to sell a car. By braking, a dealer can avoid having to comply with the same regulations that dealers maintain. For a buyer, this could mean buying a car that has a salvaged title. It could also unknowingly mean buying a car that has been in a flood and suffered severe water damage. For unscrupulous dealers, the practice is more than just lucrative, it is easier to do, as all they have to do is post their vehicles online – like a normal private seller – and expect a buyer to show interest.

By understanding the three points above, at least you can better understand how the used car trade works. Hopefully this article is useful.

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