tiger740

Hi,

I have a quick question on a salvage title. I was looking at this car, and did the carfax check. The car had a salvage history.
I contacter the owner, and he said that the damage was minimal (no structural/frame damage), and all he had to replace were the hood, fenders, and bumper cover (he purchased the car from the insurance company).

The car now has a clean Georgia title. It looks very clean from the pictures and has a low milege (25k). He's asking $10k below the retail or blue book price.

I am wondering if this is a good deal. I am wondering how the car could've had a salavage history if the damage was minimal. If the car was re-purchased from the insurance comapny unfixed, does it get a salvage title?

Thank you.

Bernie Lomax

I'm confused. It had a salvage title and has been retitled with a clean title? I don't think that can happen.

Get it checked out if you are serious. Take it to a body shop and have them look around. If it was just panels and you understand you may trouble on resale you should be okay. But get it looked at if it does have a salvage title.

tiger740

Sorry to confuse you. He said that he took the car to have the state officials to inspect after the damage was fixed. Once they acknowledged that it was in a good condition, they issued him a clean title.

Bernie Lomax

Really? It may now have a reconstructed title, but I dont think you can re establish a clean title. What state is this? I'd check the laws and ask for a copy of the title. Just seems weird. I've gotten very close to buying 2 salvage title cars, but never owned one. My brother had a car that sounds very similar to what you are talking about. Just sheet metal damage, it was repaired, and you are right they are required to have it inspected, but it still says "reconstructed" on the title. Better to be safe, as they
say.

Oh I just realized you are in REVEAH. Welcome aboard!

ricklobo

Everything sounds right... just b/c a car was issued a salvage title doesn't necessarily mean that the frame was bent or that the car was in a lake... 90% of the time, it's b/c the insurance company deemed that the repairs would be either too high or too risky to perform on the car, and would rather close out the claim with a full-loss value pay-out.

(and in most states, after the necessary work was completed on the vehicle, and you get it inspected against the state's safety inspection specs and passes the State police inspection criteria, then the car will have a rebuilt salvage title - it will never be a "clean" title, but it will have the appropriate status for road-worthy vehicles.)

Just do your homework on the car and repairs before you purchase... but you could have a good deal, if you play your cards right...

good luck...

KeithD

What he did is called washing the title. He fixed the car and registered it into a new state to wash the title. Some states do not transfer title status from a previous title. I seriously doubt any car could get a salvage title without frame damage unless it was flood damage. Remember cars with salvage titles have been declared total losses by an insurance company and are sold as salvage for PARTS.

pfb

[QUOTE]Originally posted by KeithD
[B]What he did is called washing the title.

Bernie Lomax

IF the repairs were done correctly. And IF you understand the resale may be difficult.

ricklobo

Did the original thread-starter say that this was a local car (to him) that's been transported to Georgia for re-titling ?? I didn't think this was specified...

This happens all day long... I have many friends that worked in the car insurance industry and they can speak of countless times cars are deemed "totalled" and not have frame or flood damage...

Not correct. There are no one-and-ones with this; not all salvaged vehicles get parted out. It depends on each vehicle (what's not damaged, what parts are worth a nickel, etc...)

Insurance companies total cars for many reasons. But here's the catch: once work is initiated on a car, the work had to be completed. Real world example: 98 Integra in front-end collision. $11,000 worth of repairs, but no frame damage. Market value around $16,000. Guess what - car gets totalled (now with salvage title). The insurance companies makes the call to see if they should assume certain levels of risk when it comes to repairing a car and paying a claim. In this case, they made the decision that it is to their advantage to write it off b/c of uncertaintees (how much add'l damage has to be repaired that cannot be seen or immediately assessed..)

I have a million more examples to cite... esp others where the work was initiated and the bottom lines costs exceeded the market value of the car... and those cars still have a clean, intact title...

Bottom line is to do your homework. Yes, there is a huge element of risk... Find out what's right for you. Do your research, have the car scrutinized, then make the call... If you're happy with the repairs and you have a a certain level of comfort and the deal is right, then do it... Understand you might have issues of future car resale and insurability, etc... Otherwise, wait another year or 2 until prices drop a bit more on the older cars out there...

Good luck.

s2000guy

It is my understanding that an insurance company will not fully insure a salvaged car. Check with your insurance company. If you need full cover insurance, then a salvage will be a bad choice.