You’ve been putting money away for the last year to get yourself a new a car. One afternoon when you were browsing through your local used vehicle auction, you find what looks to be the perfect set of wheels. Its auction ends this weekend, and you are going to make it yours by swooping in with a strong bid!
But maybe don’t rush into the purchase so fast. While [insurance auto auctions](https://coverhound.com/auto-insurance) are great for finding a good car at a reduced price, they aren’t necessarily the best ways to get a new car. Though they partner with rental car companies, fleet lease companies, car dealerships and even insurance companies, lemons can still slip through the cracks. If you’re going to spend money on a new car, it had better be a running one.
Here’s a list of the pros and cons of buying a salvaged vehicle online from an insurance auto auction.
**Reasons to Buy a Salvaged Vehicle**
**Pro:** Buying a salvaged vehicle means it comes at a reduced cost.
**Pro:** If you [moonlight](http://www.catsautoparts.com/articles/tips-for-buying-a-salvage-auto) as an auto mechanic or are restoring a vintage car, you can get quality parts from the steeply discounted salvaged vehicle.
**Pro:** A salvaged vehicle doesn’t necessarily mean it was smashed to bits in a car accident. The car could have been involved in a minor fender bender or backed into a mailbox. A car is totaled by an insurance adjustor if the cost of repairs exceeds its value. If the previous owner didn’t want to pay for the repairs out of pocket, they could have agreed to have it totaled, getting you a great car with a replaced fender.
**Reasons Not to Buy a Salvaged Vehicle**
**Con:** The vehicle may have experienced severe structural damage, causing it to need constant maintenance check-ups to make sure it is still safe for driving out on the road. This will continue to cost you money and you will eventually have paid money [out of pocket](https://www.thebalance.com/pros-and-cons-of-a-salvage-title-car-527266) for more than the vehicle is worth.
**Con:** When a car is labeled as totaled, the title of the vehicle changes. After it becomes a salvage title vehicle, its [salvaged status](https://www.thebalance.com/how-to-get-a-salvage-title-removed-on-a-vehicle-527543) will forever remain, no matter the amount of mechanic work you put into it to make it “as good as new.”
**Con:** Salvaged vehicles are tough to insure because of their salvage title status. Insurance companies have the right to deny collision and comprehensive insurance policies on salvaged vehicles because if the vehicle is again involved in accident, they won’t know if the extent of the new damage is because of this latest accident or if the damage extends to the accident the vehicle was involved in previously. Before purchasing a salvaged vehicle, talk to your insurance agent about what type of coverage you can expect to get for it.
**Con:** The salvaged vehicle could have been involved in a fatal accident. Some people have a hard time living in a house that has experienced a death, it’s not any different with car. If you think spirits haunt the places they died, you’re not going to want your passenger to be a ghost!
What can be learned of buying a salvaged car is that it’s important to research it first and understand its owner and driving history. Next is finding an insurance plan to cover it. [Visit CoverHound](https://coverhound.com/auto-insurance) for all of your auto insurance needs.
Insurance shopping simplified
Insurance shopping simplified