Quote:
Originally Posted by thstone
I have purchased several vehicles in California with salvage titles;
Rule #1: Never, ever, ever believe what the seller says about a salvage vehicle unless they can prove every word of it.
Rule #2: Insurance companies are never stupid when it comes to claims. If the car was totaled by the insurance company, there was a pretty good reason for it.
Rule #3: Re-read rule #1.
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I agree with the spirit of what you've said, but disagree with rule #2.
I have personally seen insurance companies make really bad decisions if the transaction is analyzed in detail. The trouble is that there are several aspects affecting an insurance companies decision to total a car. The actual damage to the car is one part, unknown damage is another (no adjuster wants to be 12K into a repair only to find out that there is deeper damage hiding that will exceed the cars value). Then there is the liability of future crash worthiness. All of this is mitigated with policies designed to mitigate risk, not determine the actual damage to the car.
Soooo...
When buying salvage titled vehicles my rules are:
1) Analyze vehicle on condition
2) Set you offer price based on history.
3) if not equipped to determine #1, than follow the insurance companies lead...pass.