One of the most valuable possessions many people own is a car. However, what happens if you have been in a serious accident and that once prized vehicle is now totaled? You may assume it’s completely worthless. Thankfully, this is not true. There are strategies you can use to get some value out of that wrecked car. It doesn’t have to be a total loss. Below are five ways to make money from your totaled car after an accident.
Use Your Insurance Coverage
After an accident, you need to immediately report the crash to your insurance company. If the car has been totaled, there’s a good chance your insurance will kick in and pay what it determines to be the cash value for that vehicle before the accident. This would be your best chance for getting the most money for the car, and the car itself would become property of your insurer.
Sell It to a Company That Buys Totaled Cars
Another option you have is selling it to a company that specifically buys totaled cars. This is a good option because they’ll pay you for cars in any condition. Even cars that haven’t worked well in years are probably worth some money. You’ll get cash in your hand, and the company is likely to pay the cost to haul it away from you as well. They’ll sell the parts of the car off individually and even recycle fluids in the car, which means they can usually offer you more than other types of businesses.
Sell the Car for Parts
Alternately, you can do the salvage yard’s job for them and sell those pieces off yourself. There is surely a lot of different pieces of that car that could be sold individually so they can be reused to repair other vehicles. If have some repair experience yourself, this can be a great option. However, while you can a good return on this, this option requires time and patience. You’ll also likely have to pay for shipping yourself, unless you factor it into the price for your customers.
Use It to Lower Your Tax Burden
While not the same as getting cash for the car, you can obtain some monetary value from it via lowering your tax burden. This can be done if you donate the car and then take out a deduction for charitable giving on your tax return. Make sure, however, you do list the current value of the vehicle unless you want to get in trouble with the IRS.
Sell It to an Independent Buyer
Lastly, another option you might want to try is to create an advertisement and publish it online on used car websites, used car publications or sites like Craig’s List. Be honest about the condition of the car in the ad. Someone may want to purchase it to restore it or use it for parts.
Just because a car has been classified as totaled does not mean it will be impossible to extract any value from that vehicle at all, even after your insurance pays out. The five options above are your best bet for getting something from a wrecked car. With some patience and research, you can get the most money possible out of your totaled car.
By Anita Ginsburg
who is a freelance writer and residing in Denver, CO. She studied at Colorado State University, and now writes articles about health, business, family and finance. A mother of two, she enjoys traveling with her family whenever she isn’t writing. If you’re looking to sell your old totaled car, she recommends looking online by searching “sell my junk car” or similar phrases.