Most people think vehicle salvage means a heap of metal, which does not drive and is not worth a penny. This is absolute nonsense, because yes vehicle salvage can be a heap of metal, which is worthless, but more often, than not, vehicle salvage simply means the car is damaged and can be repaired.
As this definition of vehicle salvage is vague it is best to inform you that vehicle salvage actually comes in categories and they are A, B, C, D and X, all with various pros and cons and as explained in this article can make us a nice bit of cash and many people use it as their main source of income.
The Code of Practice for the Categorisation of Motor Vehicle Salvage is changing from 1st October 2017?
The code sets best practice for the disposal of motor vehicle salvage, ensuring that damaged vehicles are correctly categorised.
The categories are changing from the old A, B, C & D. They will be replaced by:
Categories A (Scrap) and B (Break) will remain the same, while S (Structural) and N (Non-Structural) will replace categories C and D.
The new categories will make buying salvage vehicles more transparent, as prospective purchasers will be aware of whether the vehicle has structural damage or not.
Firstly we will define the vehicle salvage categories in the below vehicle salvage guidelines:
Category A suits the original theory of vehicle salvage being a heap of metal and usually by the time you pay for the new car parts and costs of fixing it up you stand to make a loss. The category is only good for car parts, maybe an ECU or a car engine.
Category B is similar to A in that it should only be used for car parts, however if you broke the vehicle salvage and sold the car parts you would stand to make a profit. However if you want to fix the vehicle salvage up to be road worthy then you would make a loss.
Category S is where the vehicle can be repaired and can bring you a profit. The damage may still be a lot but it is fixable to a road worthy state. If you get it done by a retailer they the costs may exceed the pre accident value, however if you know how to do something’s yourself or have a relationship with a certain garage you will almost certainly make a profit. Since category C is on the border of breaking the vehicle salvage down for car parts and fixing the vehicle salvage up, you should always ensure you can fix it up for a profit before purchasing.
Category N ensures the vehicle is always repairable and that the cost of doing so (retailer or no retailer) will be less than the pre sale value, thus making you a tidy profit. The damage is always less than a category C and often parts such as new wings or bumpers are needed with very little damage.
Category X is the best vehicle salvage around since the car has no or little damage (apart from wear and tear from the previous owners) to it and is simply stolen recovered or unclassified as being in an accident. This type of vehicle salvage always makes a high profit.
Therefore vehicle salvage can be categories and vehicle salvage guidelines produced and as a rule of thumb category’s A and B are used for car parts, categories C and D are for repairs and category X is a bargain and should be bought on the spot.
Most vehicle salvage sites only deal with categories S, N and X and ensure only the best vehicle salvage, and often have more in-depth vehicle salvage guidelines.
The new Code of Practice for the Categorisation of Motor Vehicle Salvage can be seen in full at CODE OF PRACTICE FOR THE CATEGORISATION OF MOTOR VEHICLE SALVAGE
Will I still be able to purchase Cat C & D vehicles after 1st October 2017?
There will be a period of crossover where you will see both Category C & D and Category S & N vehicles at auction.
Vehicles cannot be categorised as a C or D after 1st October 2017, but any vehicle categorised as C & D prior to 1st October will remain in circulation under those categories until such point as they are re-categorised.