Cash for Cars
June 2, 2016
Car Wreckers Adelaide- licensing requirements for car wreckers and recyclers
December 10, 2016

The Business of Car Wreckers How is that even possible?

How is that even possible? A car owner can decide to sell their wrecked car instead of letting it rot away in their home compound or in a car yard somewhere in the bush. Definitely it cannot be as pricey as when it was new and totally roadworthy.

When Should a Car be Considered Wrecked?

A car is considered wrecked when:

  • It tends to require more maintenance than before. The car owner finds that he is spending more on the maintenance than their budget can accommodate. The monthly maintenance has increased from the actual cost that the owner used to incur under normal circumstances.
  • The car is old and in some instances does not measure to the class of the owner. The car is too old as compared to the owner.
  • It has been damaged through an accident. An insurance agent from a certified insurance company can also declare that the car is wrecked. He does this after carefully analysing it after the accident. He can declare it unroadworthy or simply wrecked.

When these are the circumstances, then a car owner can decide to dispose of their car. There are businesses that are specifically established to deal in purchasing the wrecked cars. After purchasing these types of cars, they can refurbish them into better usable cars or they can dismantle the cars and sell them as pieces or parts for scrap.

The Reasons of Purchasing Wrecked Cars

The following are the reasons that can make one to purchase a car that has been declared wrecked.

  • One can buy a wrecked car if they are scrap buyers. In such a case they buy the old car, dismantle it and sell it as scrap to those in need. There are some cars that are no longer being made, therefore one sells the scrap components to car owners with the same make of car who may be in need of spare parts.
  • Another person who has never ever owned a car may buy a wrecked car and revamp it back to life just to have the feel of owning a car. This mostly happens in developing countries. The buyer then takes the car to a qualified mechanic who makes the car and allows it back to the road. The car owner is able to own a second hand car at a cheaper cost.
  • Insurance companies are also likely to buy wrecked cars. They can buy them and take them to their own qualified mechanics who make them roadworthy again. They then return the vehicles to their clients to continue using. This saves them on the compensations costs especially of replacing the old cars with those that are completely new.