sf_firestarter

Ok, I'm new to the board, but before you flame me, please understand I've searched all I can and can't find an answers to my question. I've even contacted my insurance company to no avail.

So here goes...I'm looking for an S but many in the Bay Area carry a salvage title due to theft. I know this is not uncommon elsewhere in the U.S. but the SF Bay seems to have a higher incidence of theft. Anyway, it appears most cars have only had the standard items taken such as rims, lights, interior, etc. The problem I'm having is evaluating the value of a car with this history.

If all parts have been replaced, how much less should an S cost if its a theft recovery with a Salvage Title if compared to an equivalent vehicle with a clean title?

Will

This is impossible to answer, IMO. Salvage cars are so undesireable for so many reasons (undervalued, no warranty, impossible to get full coverage, not trustworthy--the list goes on) ... that the "value" of such a car could range from $5000 to maybe $15-$20k (for a really new one) depending on where you are located. They'll sell for whatever the current market will bear. Location, location, location. Keep in mind that because you can't get full coverage, you won't be able to finance it. That alone cuts out a major portion of buyers, and fewer buyers=lower selling price.

Stratocaster

As a rule of thumb, 1/2 of KBB value is the norm.

sf_firestarter

Insurace is not a problem as my carrier already said they would cover me if I purchased one with a salvage title as long as all the damage and repairs are documented. They decide on a case by case basis and will provide full coverage.

Financing is another story altogether. My bank said they won't give a loan on a salvage car. I could cash buy to a certain price but I guess a line of credit would be the only finance option if the price exceeded my reserve? Or maybe one of those low interest credit card checks I always tell them to stop sending me?...getting sidetracked....

50% of KBB value is the first pricing theory that I've heard...thanks for that.

There must be some people on here that have bought vehicles with the same history...what have you all payed?

luckistryke

im not shore about the 50%....if it is all fixed, its more like 20% off the KBB or 20% off the market value in your area

happs22

exactly

Skimad57

You can be hurt with the salvage title if you try to sell it in the future, and so will the person buying it, but if you plan on keeping it, that's a different story. You can get a good deal, just get it fully checked out first. G/L

LATEOTT

[QUOTE=sf_firestarter,Jan 18 2005, 09:01 PM]Insurace is not a problem as my carrier already said they would cover me if I purchased one with a salvage title as long as all the damage and repairs are documented.

aklucsarits

The bottom line is that any salvage title car, regardless of why it has that title is worth less because of several universal factors:
1) Can be very difficult and/or expensive to get financing on (BANKS use 50% of Blue Book to value salvage title cars)
2) Can be very difficult and/or expensive to get insurance on, and if you total it, you will get book value of a salvage car - again, around 50% of KBB.
3) Trade in values are low - again dealer will only give you 50% of KBB, if that.
4) Resale can be difficult as well because of the stigma of the salvage title. Many people who might be in the market for a used car would never consider a salvage title car, so your universe of potenial buyers is smaller.

That's not to say that the market value of a salvage car might be higher than 50% - sometimes MUCH higher, depending on supply/demand for that particular vehicle. But salvage cars typically sell at a significant disount, primarily for the reasons I listed above.

Andrew

sf_firestarter

To clear a few things up I'm well aware of how salvage vehicles are treated in general by insurance, banks, and consumers. My question was specifically targeted at the S2000 as I said "how much less should an S cost if its a theft recovery with a Salvage Title ".

I also stated that these were theft recovery vehicles these are not vehicles that have been involved in an accident. Therefore many of the concerns raised are not valid. To alleviate many of my additional concerns I've only considered cars with fully documented damage and repair histories...this is not hard to find as the insurance companies do quite a bit.

I also know that some cars, especially older cars in limited supply do not follow the same rules. For example I had an 84 Landcruiser in excellent shape that was involved in a small fender bender. KBB and insurance values on the car are very low. But many buyers understand this and considering that...when I sold the Cruiser I got double KBB even with the salvage title. Just because it had a salvage title did not mean there was anything wrong with the car.

You should also understand that with the increase in labor and parts costs many more cars are being salvaged today than in years past. Also, a greater number of cars that are salvaged today would have been repaired and remained a clean title vehicle.

What I was hoping to get...not that this has not helped a great deal...was an idea of how the s2000 prices are affected by a salvage title? As I've been doing further research its seems that most the cars in the Bay Area are only priced about 20% below KBB. In my opinion 20% is excessive and not representative of the true value of the car. 50% seems more in line with my original thinking. Problem then is supporting my offer when entering negotiations with a seller. Thats why I came to you guys...the s2000 experts.