As supply shortages continue to affect supply chains, car prices have sky rocketed nearly 40%. If you’re a risk taker and like savings, then salvage or rebuilt titles not only save you money, but they also appreciate in value! So, how does this work?
Have you ever wondered why insurance costs are so high and why everyone has to have it? Well, the answer is simple and short: 287 million drivers in the U.S suck at driving. Another question is, what happens after an accident? Well, the answer is also simple: your insurance provider either pays for your liability or the value of your car is paid back in full after an insurance claim is filed, depending on one’s insurance coverage.
As you can probably tell, accidents happen all the time. Out of the tens of millions registered vehicles in the U.S, many of them end up in online auctions belonging to the 2 major online-auction sites: Copart or IAA auctions. After having been involved in an accident, many cars are considered salvage, but in reality, much of the value and useful life of the car is still there. Here is where things get interesting.
The rhetorical questions are getting old, but I need you to see my vision: so how is the most popular car in America being sold for nearly a 50% discount? Keep reading to find out.
Something is fishy. Why are cars so expensive at car dealerships but so cheap at car auctions? Typically, car dealers prefer selling clean title cars because for one, they have few to no headaches and two, banks are very lenient with car loans, which allows car dealers to avoid in-house-financing and get their money at once. Still, the question remains, how are $30,000 cars being sold for less than $10,000?
So, where do salvage titles come from? At last, like my favorite philosopher Socrates said, “by asking questions you arrive at the truth.” By law, anyone who owns a car and would like to legally drive a vehicle in the U.S must have at least liability or full coverage insurance in order to register with the Department of Motor Vehicles. On average, out of the 287 million registered drivers, about 6.75 million people get into accidents per year. Besides the cost of auto insurance, which varies upon your demographic, insurance companies generate revenue through premiums and by selling the insurance policy owner’s vehicle after the car is deemed to have at least 75% damage. Many vehicles that are deemed “salvage” are in reality minor damages that could be fixed by taking it to your local mechanic or body shop. This is where we obtain our arbitrage.
At NOVA Auto Sales, we are in the business of commoditizing cars to allow everyone to have the basic need of transportation. If items like food, shelter, clothing, and water are considered basic needs, then why not transportation when everyone relies on it for various reasons.
Our values are centered around being fair, honest, and transparent. Our mission is to help people in need of basic transportation by offering competitive prices. In addition, our vision is to make cars so cost-efficient that other dealers will be forced to do the same.
Lastly, it is important to note that major institutions like insurance companies are beginning to offer full-coverage on salvage or rebuilt titles. To add on, what is even more surprising is that banking institutions are also beginning to give out car loans for salvage or rebuilt titles. As this industry grows due to supply shortages, we will continue to offer fair prices to our community. We are the CarVanna killer. Contact us to invest in the next big investment opportunity.
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