Honda CR-V Auctions: Pros & Cons of Buying Salvage Vehicles
Honda CR-Vs are undoubtedly among the most popular sport utility vehicles (SUVs) on the market today, admired for their spaciousness, dependability, and cost-efficiency. They’re consistently in the top 10 cars sold every year. In 2022, Honda sold over 238,000 new CR-Vs. Like all vehicles in the last few years, the prices have risen exponentially.
These increasing prices have many potential buyers such as yourself looking for alternative places like salvage auctions to buy a new CR-V. It might take a little work on your part, but you should be able to find a Honda CRV auction online.
What you need to understand about a salvage vehicle is that it’s a car that has been taken to the auction by an insurance company because the cost to repair the damages is greater than the book value of the vehicle. This doesn’t mean that the car can’t be fixed.
The book value may just be low, and the vehicle repair cost may actually be reasonable. To help you decide whether you want to bid on a salvage vehicle, here are some of the pros and cons of buying a wrecked Honda CR-V at a salvage auction:
Pros of Buying Salvage Honda CR-Vs
Affordability: The most enticing benefit of buying a salvage Honda CR-V is its affordability. Salvage vehicles are typically priced significantly lower than their undamaged counterparts, which can be particularly appealing if you’re working with a tight budget.
When deciding whether to buy a salvage CR-V, consider how much it will cost to repair it. This could be the best way to save money if you’re mechanically inclined. It will cost you some sweat equity, but in the end, you’ll get a car that you know is sound.
Availability of Parts: The Honda CR-V is a very popular model; finding spare parts is relatively easy and inexpensive. This makes the repair of a salvage CR-V less stressful than rarer makes and models. The CR-V went into production in 1995, and their generations last around 5 or 6 years, so there are a lot of parts on the market, including OEM parts.
Potential for Profit: If you have the skills or resources to repair a salvage vehicle, you could end up with an excellent Honda CR-V at a fraction of the cost. The CR-V gets high gas mileage, and with gas prices constantly fluctuating, it’s nice to have an economical car to drive. If you decide to repair and sell, this SUV could be a great choice to turn over.
Environmentally Friendly: Buying a salvage vehicle is a form of recycling. It keeps a car from going to the junkyard where it is compacted down and piled up. Don’t overlook using the junkyard to source replacement parts for your Honda either.
Cons of Buying Salvage Honda CR-Vs
Hidden Damages: The most significant risk with salvage vehicles is that their damages aren’t always visible. They may have hidden structural or mechanical problems that could pose serious safety risks or costly repairs down the line.
That’s why it’s vital that you get a copy of the vehicle history report before you bid on or buy a salvage vehicle. A report will tell you if any other accidents or damage to the car that could make it a bad financial investment.
Insurance Challenges: Insurance companies often shy away from salvage vehicles. It might be hard to get comprehensive coverage, and even if you succeed, the premiums could be high. You may have to accept lesser coverage for your car.
Limited Resale Value: While you may find profit potential, the resale value of salvage vehicles is often lower than their clean-title counterparts. Buyers are usually wary of cars with a salvage title, even if they’ve been fully repaired.
Financing Hurdles: Many lenders hesitate to finance salvage vehicles due to their diminished value and potential risks. If you’re considering a salvage Honda CR-V, be prepared to pay cash or secure alternative financing.
Purchasing a salvage Honda CR-V from an auction could be a bargain, or it might be a financial pitfall, depending largely on your resources and expertise. If you’re a mechanic, a car enthusiast with repair skills, or are simply looking for a budget-friendly vehicle for parts, a salvage CR-V might be an excellent choice.
However, the risks might outweigh the benefits for the average buyer with limited mechanical knowledge or the immediate need for a reliable vehicle. Before purchasing a salvage vehicle you should consider the potential for unforeseen repair costs, insurance and financing challenges, and possible safety issues.
Remember to always do your research when contemplating buying a salvage auction car. You will need to know about the vehicle you want, understand the costs of repairs, thoroughly inspect the car before bidding – you can use an auction-approved third-party inspector for this – and read the car description carefully.
August 14, 2023