buying crashed cars from insurance companies

[trixyben]

I am looking into an idea which would involve buying crashed/damaged cars from insurance companies....i wont be buying a big amount of them say maybe having 10 at one time....what i would like to no is how would i go around getting these cars? is it as simple as calling insurance companies and getting through to the dept that deals with that? do i have to be registered with any gov/trade bodies etc to buy and store these cars? ideally i would like them with as little damage as possible so can i go to a yard of somesort and pick as i like?

As you can prob tell i have no idea or experience of doing the above so any help would be great thanks.

 

[TFGtv]

As you can prob tell i have no idea or experience of doing the above so any help would be great thanks.

Rather a guess; but I assume that extends to not being a member of the Motor Trade and therefor not having the skills and experience necessary to put them back on the road? Or otherwise dispose of them?

Actually getting the cars would be the easy bit... As easy as googling 'damaged repairables'. But as any petrol head will tell you doing anything with them after that is where ti gets complicated!

 

[garyk]

A friend and I used to do this many many years ago, not to make big money but more as a way of acquiring cars cheaper, we normally went for stolen recovered vehicles with very little or light panel damage. In those days there were numerous scrap yards you could buy these vehicles from. I dont think its that easy these days but good luck!

 

[TFGtv]

Used to be somethimg I did as a youngster too. There are a few places still auctioning them regularly and even a couple of folk who deal in them. It's insuring them that can be an issue...

 

[lockyer]

Insurance companies only sell to approved scrapyards, or to the policyholder, but a good place to start is someone like Douglas Valley, they are a major buyer.

Jon Newall
www.lockyers.co.uk

 

[Esk247]

it used to be a good idea but i think red tape has pretty much finished this off. if a car has been written off it needs to be re-tested when repaired, any car that has a history of being written off sells for less than a comparative car with no previous damage. the margins are minimal the start up costs are higher than ever before, the re-sale options are limited in the current market. would be better to look at rare cars that need repairing/restoring and selling them to car club members rather than mondeos and vectras, i can get a decent one of those for £750 with brand new m.o.t, full service history and 3 month warranty on all parts.

 

[DaveSUK]

You will find it hard to buy cars from an insurance company with only a little damage. When one claims on their insurance policy the insurer will decide whether it is economically viable to fix the car. In order words would it cost more to fix the car than the car is worth if it does it will be classified as a Category C Right Off. If it is no possible to fix the car at all irrespective of cost then it is classified as a Category D Rigth Off, Category D must only be sold to a governement approved vehicle dismantler and may not be put back on the road.

With category C the insurance company will initially offer to sell the car back to the insurance policy holder if they don't want it the insurer will either scrap the car or send if for sale a public auction.

A much easier was to get into this industry would be go to your local vehicle autions if you are competent at fixing cars go for the cat C right offs which are quite cheap. Dont forget to get the car back on the road it will undergo an MOT style test which is more comprehensive than the standard MOT. If your not that competent with cars you may want to go for repossesed cars and/or ex company cars again these will be for sale at public auction. You may also be interested in bailif autions but I don't know much about these.

 

[saxondale]

supplier - http://www.rothervalleymotorsalvage.co.uk/

 

[K.C.Leblanc]

In order words would it cost more to fix the car than the car is worth if it does it will be classified as a Category C Right Off. If it is no possible to fix the car at all irrespective of cost then it is classified as a Category D Rigth Off, Category D must only be sold to a governement approved vehicle dismantler and may not be put back on the road. .

Not quite right, Cat D & C can both be put back on the road. Cat C is where the car is uneconomical to repair. Cat D is ligher damage then Cat C, I think it's used when the total cost of the claim (when you factor in courtesy cars and admin) pushes the cost over the edge.

Cat A (fire) and Cat B (it's properly bent, has been on it's roof or might not even be in one piece) are the ones that prevent the car being returned to the road.

 

[garyk]

Yep the problem is now the insurance companies now inform DVLA (like they always did anyway) but now you have to get a vehicle identity check done for any cat c&d at a local (not always local to you) dvla VIC test centre, I never remember all that. Bit like all the SORN $hit as someone that has always run additional motors/classics its just more red tape bull$hit.