If you’re considering buying a damaged car, you may have some questions about the different crash damage categories and the potential risks of purchasing a written-off vehicle.
Car insurance companies follow strict guidelines when assessing a car’s damage, as outlined by the Association of British Insurers (ABI) Code of Practice, and it’s important to understand what each mean before buying a damaged car.
Read this guide to find out what accident damaged vehicles are, what categories are available to buy, and the pros/cons of purchasing a salvage vehicle.
Understanding damaged repairable cars
Damaged cars can be a lucrative business opportunity for car traders, but it’s essential to understand the different types of damaged cars and how to assess the damage. Whether you’re a seasoned mechanic or a car enthusiast, knowing the ins and outs of damaged cars can help you make informed decisions and potentially save a significant amount of money.
What is a damaged vehicle?
When a vehicle is written off by an insurer, it will be assigned a category based on the type and severity of the damage. An insurance company evaluates the damage and assigns a category based on the severity and type of damage.
Up to October 2017, these four categories were A, B, C and D, with the level of damage being most severe under category A.
The ABI updated the code to shift focus away from the cost of repair and place it on structural issues that impact the roadworthiness and safety of a car. Category C previously referred to repairable vehicles where the cost of restoration exceeds the pre-accident value, while Category D signified damaged cars where the repair cost doesn’t exceed pre-accident value.
The new categories are now A, B, S and N. You may also see Categories A and B referred to as ‘actual loss’, and S and N as ‘constructive loss’.
Salvage Categories
A: Category A refers to cars that are so badly damaged that they can never reappear on the road and even salvageable parts must be destroyed.
B: Category B signifies extensive damage, meaning that the car shouldn’t reappear on the road, although some parts are salvageable.
S (formerly C): Category S means that the car has sustained structural damage, for example a twisted or bent chassis. As the damage is more than cosmetic, salvaged cars must be professionally repaired before being deemed safe to drive.
N (formerly D): Category N cars haven’t sustained structural damage, so the issue must be cosmetic or electrical. The car will likely need to be professionally repaired before being deemed safe to drive, as non-structural problems can include brakes, steering or safety features.
Both Category S and N cars can return to the road after being repaired, with some insurers choosing to sell the car on for salvage while others may sell it to the original owner or a third party.
Vehicles categorized as C or D before 1st October 2017 may still be labelled in the old categories, so you should check with the seller as to whether the damage refers to previous or updated classifications.
You may also find U/X Category cars, which are used, unrecorded or stolen recovered. These vehicles often fall outside of the ABI Code of Practice and are not classified as a write-off under the updated guidelines. Whilst these cars may not be classed as salvage, they could still be crash damaged.
Types of Damaged Cars
Damaged cars can be categorized into several types, each with its own set of challenges and opportunities:
Accident-damaged cars: These vehicles have been involved in an accident and may have sustained damage to the bodywork, engine, or other components. Accident damaged cars are often the most common type found in salvage yards and auctions.
Flood-damaged cars: These cars have been damaged by water, either due to flooding or being submerged in water. Flood damage can affect both the exterior and interior, including the electrical systems.
Fire-damaged cars: These vehicles have been damaged by fire, either due to an accident or a deliberate act. Fire damage can be extensive, affecting the car’s structure and mechanical components.
Mechanically damaged cars: These cars have sustained damage to the engine, transmission, or other mechanical components. Mechanical damage can range from minor issues to significant problems that require extensive repairs.
Understanding these categories can help you identify the potential risks and rewards associated with each type of damaged car.
Should I buy salvage vehicles?
The main appeal of buying a repaired Category S or N car is that it can cost considerably less to buy than purchasing the equivalent brand-new model, although drivers can experience issues when it comes to roadworthiness and insurance of previously accident damaged cars.
Compared to a private sale, buying from a regulated seller ensures that you have access to documentary evidence and a thorough inspection of the vehicle.
If you have the skills, knowledge and drive to repair a damaged vehicle yourself, you could save a significant amount of money over buying the car new, including the cost to repair.
If you’re looking to restore another vehicle that you already own, buying a Category B and S car can provide you with great-value salvageable parts. For some car enthusiasts, the challenge of restoring an accident-damaged car justifies the cost.
However, N and S Category cars are not always straightforward to insure, as some companies won’t consider covering a repaired or restored car, and those that do may charge a significantly higher premium. If a company does offer insurance for a Category S or N car, they will almost always stipulate that it undergoes a new MOT test prior to approval.
Written-off cars are also worth less than their undamaged counterparts and while this will be reflected in their purchase price, it’s important to bear this depreciation in mind if you’re considering selling it on.
When properly repaired, Category S and N cars should be equally as safe and legal to drive as a new car. Ultimately, you should only consider buying a damaged car if you’re confident about the vehicle’s safety, economy and integrity.
It’s important to remember that written-off cars can vary in damage from light cosmetic issues to deeper mechanical problems that affect its safety.
Consider your skill level before committing to repairing a damaged car; those who specialize in used vehicle restoration may be better suited towards fixing vehicles with lighter damage, whereas heavier vehicle damage will likely be better handled by an experienced mechanic.
Assessing Damage
Assessing the damage to a car is crucial in determining its value and potential for repair. When evaluating a damaged vehicle, consider the following factors:
Extent of damage: Determine the extent of the damage, including the number of damaged parts and the cost of repairs. A thorough inspection can help you understand the full scope of the work required.
Type of damage: Identify the type of damage, such as accident damage, flood damage, or fire damage. Each type of damage has its own set of challenges and repair costs.
Age and mileage: Consider the age and mileage of the car, as this can affect its value and potential for repair. Older cars with high mileage may have more wear and tear, making repairs more costly.
Market demand: Research the market demand for the car and its parts to determine its potential for resale. Some models may have a higher demand for spare parts, making them more valuable even if the car itself is not roadworthy.
By carefully assessing these factors, you can make an informed decision about whether a damaged car is worth repairing or if it’s better suited for parts.
Repairing a Damaged Car
Repairing a damaged car can be a cost-effective way to restore it to its former condition. However, it’s essential to consider the cost of repairs and the potential return on investment. Whether you’re looking to get the car back on the road or strip it for parts, understanding the financial implications is key.
Cost of Repairs: The cost of repairs can vary widely depending on the extent of the damage and the type of repairs needed. When estimating the cost of repairs, consider the following factors:
Labor costs: Determine the labor costs involved in repairing the car, including the cost of hiring a mechanic or repair shop. Labor costs can increase quickly, especially for extensive repairs.
Parts costs: Estimate the cost of replacement parts, including the cost of sourcing and purchasing the parts. Some parts may be more expensive or harder to find, depending on the make and model of the car.
Time and effort: Consider the time and effort required to repair the car, including the time spent sourcing parts and labor. If you’re doing the repairs yourself, factor in the time you’ll need to complete the work.
By understanding the different types of damaged cars, assessing the damage, and considering the cost of repairs, car traders can make informed decisions when buying and selling damaged cars. This knowledge can help you navigate the complexities of the salvage car market and potentially turn a profit from your investment.
Where can I buy accident damaged cars?
Whether you’re wanting to buy a damaged car to sell, repair or strip for parts, it’s essential that you only purchase from a regulated and reliable seller. Salvage cars can be purchased through regulated auctions, providing a wide range of options for buyers.
It’s recommended that you always ask for documentary evidence of what happened to the car, complete an independent online vehicle history check and visit the vehicle in person for a thorough inspection before buying.
If you’re looking to buy a category B vehicle, you’ll need to hold the correct licenses and meet the seller’s requirements. You don’t require licenses for buying S and N, which can be purchased from authorized garages, online retailers and car auctions.
Ultimately, whether you should buy a damaged car is down to your personal preference, economics and intention. If you have limited or no experience with damaged vehicles but are still considering salvaging one, there’s no reason that you shouldn’t purchase a crash damaged car if you feel it’s right for you.
However, it’s important to make sure that you check the history, condition and level of damage of any vehicle before making a decision.
If you’re looking to buy a used vehicle, need a short term rental vehicle, or would like some advice on which models are the best for your budget, contact our experienced team on 0113 831 3108 to discuss your requirements.