Salvage title

[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.

With being said, salvage vehicles can be very good deals but you have to approach the car as a mystery with no witnesses. Your job is to determine the state of the car (what was the extent of the damage and was all of the damage repaired) and what your risk is going forward (was it repaired correctly). This must be done completely unemotionally because if you fall for the car you'll lose all of your objectivity and take on way too much risk. The key is to have the most extensive PPI imaginable performed by a real expert. You've got to know exactly what you're getting into before you buy it.

If you can do this and are willing to risk several thousand dollars if you get it wrong, then you might get a great deal. If you can't do this or can't live with the financial risk, then run away.

[j.fro]

If you're building a track car, your salvage find would be a great start!

[shadrach74]

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.

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.

[jsceash]

I would also add #4 pull the Carfax, buyers can lie about the damages. Insurance companies reporting back on the site rarely do.
#5 look at the car in the day light and also under night lot lighting. paint color flaws don't always show up in day light but almost always show up under lot lighting.

[doublesw]

I work for a major insurance co. in NC as an adjuster. There are many things that I consider when evaluating a wrecked car and if it is repairable or not. First is the cost of repairs in relation to value of the car. Each state has its on rules on this, but 75% damage to value makes it a total by law in most states. I also look at the chances that there is hidden damage that can't be seen until the car is torn down. IF it is close and I think there could be hidden damage, I total it. If it is a third party claim(one of our customers hits another car) then I would tend to total it quicker. I would have rental costs and diminished value claims to consider. Human nature also figures in to it. If a car is borderline and I can push it either way, I will try and go with what he owner wants to do. That is, if he has not been a jerk to deal with. The op wanted to know about a water salvage car. RUN from this car. I would not touch a water damage car with a ten foot pole, unless I was buying it for parts. Most of the time the real damage on 90% of these cars will not show itself until 6 months or a year down the road.
As far as the value goes, when I am settling a total loss claim on a car with a salvage title, the absolute most I would pay is trade in value. Most of the time you would be looking at 60 to 65% retail. As long as you know what you are getting and get it at a bargain price, nothing wrong with a salvage car caused by an accident. BUT, if it is salvage because of water, DO NOT BUY IT.

[WhipE350]

Originally Posted by doublesw

I work for a major insurance co. in NC as an adjuster. There are many things that I consider when evaluating a wrecked car and if it is repairable or not. First is the cost of repairs in relation to value of the car. Each state has its on rules on this, but 75% damage to value makes it a total by law in most states. I also look at the chances that there is hidden damage that can't be seen until the car is torn down. IF it is close and I think there could be hidden damage, I total it. If it is a third party claim(one of our customers hits another car) then I would tend to total it quicker. I would have rental costs and diminished value claims to consider. Human nature also figures in to it. If a car is borderline and I can push it either way, I will try and go with what he owner wants to do. That is, if he has not been a jerk to deal with. The op wanted to know about a water salvage car. RUN from this car. I would not touch a water damage car with a ten foot pole, unless I was buying it for parts. Most of the time the real damage on 90% of these cars will not show itself until 6 months or a year down the road.
As far as the value goes, when I am settling a total loss claim on a car with a salvage title, the absolute most I would pay is trade in value. Most of the time you would be looking at 60 to 65% retail. As long as you know what you are getting and get it at a bargain price, nothing wrong with a salvage car caused by an accident. BUT, if it is salvage because of water, DO NOT BUY IT.

Good to have you on the Forum! Welcome and thank you for the information. Sounds like the odds from an Insurance companies point of view is when in doubt total a water damaged car, odds in the end will pay off. Sounds like the buyer of one of these cars rolls the dice and should do and extensive PPI and hope they get a good one if they decide to buy.

[Krusser]

I bought 2 salvage cars couple of years ago and one some months ago (view here and at this page), so I think there is nothing wrong with buying salvage cars, but I would never buy a salvage car if it wasn't saving me at least 70% off the retail value of the car. Moreover, it depend on why it has a salvage title, I would never buy a flooded vehicle.