When a vehicle is totaled, the natural next step for ensuring the people’s safety is deciding what to do with the totaled vehicle. For example, individuals can replace, sell or salvage it, a process that requires a value to be figured out and agreed upon. A totaled car value calculator would naturally be the perfect tool to find said figure according to JunkCarsUs. So, how does one define these tools, and utilize them?
Well, let’s check the information below that provides precisely those answers, as we delve deep into these calculators. Not only will their definition and functionality be discussed, but we’ll also take a look at some additional data that will further clarify things such as what makes a car totaled, and salvaging considerations.
Defining said calculator
The tools in question are essentially a series of procedures and steps taken to figure out the value of an automobile after it’s been totaled. Totaled car value calculation requires the collection of quite a bit of information, which, while they may differ among various organizations, typically include the collection of quite a bit of information. These range from basic information concerning the vehicle to having a formula, of which variations may exist based on location.
Modes of operation
As stated earlier, calculators vary based on who owns them, be they a trusted dealer willing to purchase the automobile, or the insurance companies. Regardless, it’s better to start digging for information on your own, as well as valuation discernment, just in case appeals, or negotiations are necessary. With insurance establishments, it often means knowing everything about how they conduct research, and come up with the figures.
The objective of said establishments is to either pay for repairs or to outright replace vehicles if they’re total losses, which describes vehicles so destroyed that fixing things would be more expensive. One determines if a vehicle fits the description, for example, finding the fair market value: you can check detailed data on how to value FMV. Other points to consider:
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finding the salvage equivalent
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subtracting the former from the latter
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comparing the difference to the repair costs
Also, comparing the difference to the repair costs, which is higher than said difference, will result in a car falling into the category. As noted, not every place will use this specific method, so always expect some variations.
Car details
In any case, the valuation method of some major insurance organizations typically factors in the same things, such as the following car details:
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Age
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Mileage
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Make, and model
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The car’s physical state at the moment it crashed
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Resale value
With the above information, one could find the automobile’s value by rough estimation. This is done by averaging multiple different vehicles of the same make, number of miles, and all other aspects. When other aspects such as retail, and dealer value are added to the mix, along with a reputable site on which you can find a price, things are easier.
It’s also worth noting that dealers willing to purchase the car from you, will use similar criteria to end up with a figure. Some even offer their calculators to those trying to sell, with the process often involving additional information such as title type, a photo of the vehicle, and contact data, which may be attached to a form.
Other necessary information
The above will help when it comes to negotiations with dealers trying to buy your car, as well as with appealing insurance company calculations you may disagree with. However, both do their investigations into your vehicle, which can end up in a car not categorized as totaled. For anything to fit that description, the following have to be true:
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If it’s three decades old, or older outside being a collector’s item
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If it’s having oil leaks, a sign of engine damage
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If it won’t start or nearing that stage, a sign that it’s either completely totaled, or is close to it
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If the insurance companies classify it as such
It’s also wise to keep additions such as audio systems in mind, as they may affect pricing. So always keep receipts regarding them.
Dealing with the vehicles
Whether it’s as a result of a particularly bad accident, or simply aging, there are quite several ways to deal with cars in the above state. There’s the path of getting an insurance payout, which will inevitably lead to totaled car value calculating on both parties, and the same is true for trying to sell it to a dealer. That said, there are other paths you could take if the insurance payout and offer from the dealer does not suffice, and these include the following:
Proceeding to salvage
Salvaging is the process of taking the most valuable parts of the car and selling them on their own. These are indeed valuable, and even more so if the car is a rare, and highly sought-after model.
Retaining and fixing it on your own
Doing this is only a safe bet if very little damage is sustained. However, with there being over 275 million registered vehicles in the US alone, you can imagine that the need for fixing cars, having proper insurance, as well as using junk car services, are always needed. So going to those who contributed to the car being totaled is another bet.
Donating it
Be it an NGO, or similar charity, you could simply give the vehicle to them, and what they end up doing with it is up to them. They could be the ones who end up going through the salvaging process. This is beneficial as it not only rids people of something that’s not as valuable as they would have liked but also gets them tax deductions.
Final thoughts
So the junk car services are always needed. A major component of this space is the totaled car value calculator, which allows for a better understanding of how pricing works. This knowledge is particularly useful for those trying to sell or get a payout.
It gives more insight regarding what the other parties may offer, which puts you in a prime position to counter. Whether it’s the total loss formula, the averaging path, or any variation you may encounter, knowledge of it gives you a better chance of making things fair.