Most consumers are still feeling the impact of the financial crisis. This is probably the best explanation for the fact that the used car market is more popular than ever. Consumers have learnt that buying a young secondhand car can save them a lot of money. And in there uncertain times, saving money has become a priority.
But it seems to me that used car traders haven't necessarily realized all the potential of their own market. While on the hunt for used cars to sell, European car traders are mostly looking for vehicles that are in the best possible condition. And they fail to see the potential that comes with trading accident damaged cars.
Why sell accident cars?
Why should car dealers and traders invest in cars damaged by an accident? The answer is simple: to save money. Of course, not just any old wreck will do. You have to be smart about it.
Find a good supplier of damaged cars
First you have to find a good supplier. Buying cars from consumers will limit your margin right from the start. Instead, choose a platform in a business to business environment. There you can find a number of accident car auctions every week. The offer usually consists of ex-leasing vehicles, stock cars and former rental cars.
Choose the right accident damaged vehicles
Like I said: not any old wreck will do. If you want to sell the original vehicle, you should choose a car with minor defects that can easily be fixed.
The goal is to save more money on buying the car, than what you spend to fix it. You can also use one of these accident vehicle auctions to scout for parts. Wrecks are often sold at bottom prices, and the parts you need could still be intact. This again gives you the opportunity to save money on expensive new parts.
Local regulations on accident damaged car sales
If you trade cars internationally, please keep in mind that local regulations might differ from your own. In Germany, for example, there are strict regulations with regards to selling accident damaged vehicles.
According to German law, a seller is obliged to notify interested buyers that a vehicle was previously involved in an accident. Furthermore, the damage has to be noted in the purchase agreement. But what is considered to be an accident vehicle?
German law states that 'every event that has unwittingly caused permanent damage through a violent impact qualifies as an accident. This also includes broken side windows or dents caused by thick hail. While minimal body damage, paint damage or minor damages stop a vehicle being accident-free, it doesn't mean the vehicle will be declared an accident car'.
To my knowledge, (most) other European countries don't have such intricate regulations for accident damaged cars. However, I do advise you to always check in advance.
I'm currently working as an SEO specialist and copywriter for a European online car auction company called CarsOnTheWeb. Our auction website offers a wide range of used cars of all makes and mileages.