What’s the Salvage Value of Your Car?

What’s the salvage value of your car?

Let’s face it: cars don’t last forever. If your car has been in an accident, has high mileage, or is just occupying space, you may wonder about its value. You might ask, “How much is it worth in salvage?” You might also think, “Should I keep it?”

To learn how to calculate the salvage value of a vehicle, you are in the right place. Let’s break it all down so you can make an informed decision.

What is salvage value?

The salvage value of a car is the amount it is worth after your car is declared a total loss by your insurance company.

Salvage value is different from resale value. Resale value is what you get when selling to another driver. Salvage value depends on scrap metal, usable parts, and disposal costs.

Think of it as your car’s “second life” value, made up of what’s still functional and what can be scrapped.

How to calculate the salvage value of a vehicle

Determining the salvage value of a car isn’t an exact science, but a common salvage value formula is:

Salvage Value = (Scrap Metal Value + Usable Parts Value) - Cost of Disposal

• Scrap Metal Value: This depends on your car’s weight and current scrap metal prices.
• Usable Parts Value: If your vehicle has a functioning engine, transmission, or tires, these can add to its worth.
• Cost of Disposal: Includes towing, recycling, or dismantling fees, which lower the final value.

The actual salvage value calculation varies depending on the make, model, age, and condition of the car. To get an accurate estimate, use a trusted service like Peddle to receive an instant quote.

How much is my totaled car worth?

This is the million-dollar question—though it’s often more of a few-hundred-to-few-thousand-dollar question. The salvage value of a car depends on multiple factors, including:

• Age and Mileage: Older junk cars with high mileage tend to have lower values.
• Condition: A wrecked car from a major accident has a lower salvage value than a vehicle that’s simply old.
• Demand for Parts: Popular car models have parts that are in higher demand, increasing salvage value.
• Scrap Metal Prices: These fluctuate based on market conditions, so timing matters.

For example, a 2010 Honda Civic with a blown engine can still have good value because there is a high demand for its parts. In contrast, a 2005 minivan with 200,000 miles might only be worth its scrap metal.

Should you keep a car with a salvage title?

This depends on your situation. Keeping a damaged car could make sense, but there are drawbacks:

• Cost of Repairs: If someone declares your car a total loss, fixing it might cost more than its worth.
• Auto Insurance Issues: A lot of insurance companies won’t cover a car with a salvage title. If they do, you will usually end up paying a higher premium.
• Storage Hassles: If you aren't actively driving it day-to-day, it might end up in your driveway collecting dust.

If you’re skilled at car repairs and plan to drive the vehicle yourself (not resell it), keeping it might be an option. Otherwise, selling it for salvage is often the smarter choice.

Can you buy back your totaled car?

If your car was in an accident and your insurance says it is a total loss, you might wonder if you can buy it back.

The short answer is, yes!

In most cases, insurance companies allow the insurance owner to repurchase their totaled vehicle for its salvage value. However, there are several factors to consider before making a decision.

Things to consider before buying back a totaled car

Purchasing a totaled vehicle may be a practical option in certain situations, such as:

• Cosmetic damage – If the primary damage is to the exterior and the vehicle remains functional, repairs may be manageable.
• Personal significance – If a car has a special meaning to you, it might be worth hanging on to.
• Cost-effective repairs – If the repair costs are low. It might be worth keeping around from a financial perspective.
• Parting out the vehicle – If repairs are not feasible, selling parts individually may provide value.

However, potential challenges include:

• Reduced resale value – A rebuilt title typically decreases a vehicle's market value, making it harder to sell later.
• Insurance limitations – Some providers offer restricted coverage for salvage or rebuilt vehicles.
• Unexpected repair costs – More damage may be found during repairs, increasing expenses.

Final considerations

Before proceeding with a buyback, it may be helpful to research:

• Salvage values – Comparing insurer estimates with salvage car prices.
• Repair costs – Obtaining estimates from mechanics or assessing personal repair capabilities.
• State regulations – Understanding title and inspection requirements in the relevant state.

A buyback may work depending on your situation, but weigh the costs and requirements first. If repairs aren’t worth it, selling to a company like Peddle can get you cash without fixing the car.

Ultimately, decide based on your finances and needs.

Why Peddle is the best way to sell a salvage car

Now that you understand salvage value, let’s talk about the easiest way to sell your totaled car: Peddle. Here’s why:

• Instant Offers: Get a quick cash offer based on your car’s make, model, and condition—no guesswork needed.
• Free Towing: We pick up your car for free anywhere in the U.S., even if it doesn’t run.
• Fast Payment: When we pick up your car, we pay you on the spot. No waiting, no hassle.

For individuals seeking to sell a salvage car, Peddle stands out as an excellent choice. The process is efficient, straightforward, and trustworthy. This eliminates the need to engage with a salvage yard or attempt to sell a damaged vehicle privately.

Final thoughts

Figuring out the salvage value of your car doesn’t need to be stressful. You can learn to calculate the salvage value. Using a trusted service like Peddle, you can quickly sell your damaged car for cash.

So, why wait? Get an instant offer from Peddle today and see how much your totaled car is worth. Your driveway (and your wallet) will thank you!