Finance a Written Off Car
Do you provide finance options for category C and D cars? I would like to buy one.
Most finance providers shy away from category vehicles, the Car Loan Warehouse, however, may be happy to arrange loans for these vehicles.
‘Brilliant from start to finish made it very easy for me to purchase my vehicle. Top quality customer service from all at Car Loan Warehouse. I would recommend to anyone and everyone.’
What is an insurance write-off?
You may have read about insurance write-offs, Cat C and Cat D write-offs, but what does it all mean and should you avoid buying a car of this type? Are there bargains to be had and what should you look for?
If you’re unfortunate enough to be involved in an accident and your car is damaged, your insurer may deem it as a “write-off”. This usually results in the insurance company retaining the vehicle instead of it being repaired, and the owner being paid a cash sum for the loss, but what does the term actually mean?
“Write-off” is industry jargon for a car that has sustained so much damage that it is either unsafe to go back on the road, or that it’s beyond economical repair. In the case of the latter, an uneconomical repair is based on a vehicle assessor’s inspection, an estimate of work required and a repair-to-value ratio which can be different for each insurance company and vehicle.
For example, if your car is worth £10,000 and your insurance company uses a repair-to-value ratio of 60%, your car would be deemed a write-off if the estimate to repair the car is in excess of £6,000.
What is a Cat C or Cat D write-off?
You may have come across cars being advertised as Category C or Category D write-offs, but what does this mean? Insurance companies use various categories of car insurance write-off to rank the seriousness of accident damage. Two categories represent very serious damage, deeming the vehicle unsafe to return to the road, but the remaining two categories are for ‘economic write-offs’ – where damage is expensive to fix but not necessarily dangerous.
Category A
Scrap only. For cars so badly damaged they should be crushed and never re-appear on the road. Even salvageable parts must be destroyed.
Category B
Body shell should be crushed. Signifies extensive damage, although some parts are salvageable. Should never re-appear on road, although reclaimed parts can be used in other road-going vehicles.
Category C
The vehicle is repairable but the costs exceed the vehicle’s value. Can re-appear on road.
Category D
The vehicle is repairable but repair costs are significant compared to the vehicle value – including time delays to source parts. Can re-appear on road.
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What happens to written-off cars?
The ABI Salvage Code dictates that Category A and Category B cars should be crushed, with Cat B vehicles allowed to donate some safe and serviceable parts. However, write-offs in Categories C and D can be sold on by the insurance company, either to the original owner or to a third party via a car salvage company.
Cars written off as Category C must have a V23* form submitted by the insurer, self-insurer or agent to DVLA as soon as the categorisation decision is made and without waiting for V5. However, it is the responsibility of the keeper to notify DVLA when a vehicle is passed to an insurer following a total loss payment. No notifications are made to the Driver and Vehicle Licensing Agency (DVLA) or VOSA when a car is written off in a Category D situation.
When a dealer or private individual is selling a car which has previously been written-off as Category C or D, they must inform this information to any potential buyer. Cars in these categories can sometimes represent a bargain, if they are priced accordingly, but be very careful with your pre-purchase checks to ensure you know the full story. An older car can be repaired to an acceptable standard at a lower cost than that dictated by an insurance company’s standards – especially if used parts or cheaper labour are used.
Some unscrupulous sellers may try to pass off Category C or Category D cars as non-damaged motors by hiding their past. It is vital the buyer completes a vehicle history check to verify they are not buying a written-off car at an over the odds price. You can complete a simple HPI Check here.
Can You Finance a Category C or Category D car?
The vast majority of finance providers in the UK will not finance category C or D cars, the Car Loan Warehouse however are different. We are able to arrange suitable finance for Cat C or Cat D cars, meaning that if you complete careful checks and you confident about what your buying, we will provide the funds for the purchase.
Whether it’s an old Morris Minor or a damaged super car, we are happy to arrange loans of up to £100,000 for written-off cars, simply call our professional team on 0800 066 2888 or apply now.
Quick, Easy Approval
On average loans are approved within 60 minutes of submitting your details to us