Salvage titles

While looking for a car to replace the recently departed Murano, I have noticed just about anything that is affordable has a salvage title. Perhaps someone here in the insurance business can help me understand all the implications of this. It's gotten discouraging. Some people are advertising as private individuals on Autotrader, but they have an enormous numbers of cars available at a reasonable price with reasonable mileage. One guy apparently has several phone numbers and shows up as different distances to appear to be someone else. And a Russian name shows up on caller ID. Stories are pretty vague. Its almost enough to send me to a dealer.

Salvage titles definitely lower values and many times these cars can't be insured the regular way. And according to some posts on here, in some states they can't even be titled for the road again.

RUN!

I would definatly run.. my Bimmer once had a salvage title, but somehow it got "washed" from NC to NY.. so I did not realise it until I owned it a while and found repaired accident damage and then did some digging.

While it was a good car for the first three years.. bad repairs have raised their ugly head and I now need to replace the car because when they welded the passengerside back up.. they never even painted the welds, let along undercoated them. My beloved ti now lacks most of a passengerside floor, the passenger door is a pain to open, and now rust is attacking the suspension mounting points.

Salvage title, according to my agent, makes a vehicle uninsurable for full coverage policies. I just disagree with the light hits being salvage, but a freaking rollover needing every panel replaced gets fixed and keeps it's "clear" title while being a rolling death trap.

They can save you a lot of money, but they are very risky unless you're really trained as to what to look for. Most cars get totaled for very good reasons. The only stuff that gets wiped out for light hits are older cars, which doesn't sound like what you're shopping for.

ddavid is right, he works in the auto insurance business, as do I.

Cars can get totalled for a variety of reasons. Accident, flood, theft, hail, mechanical. etc... For example, it could have been totalled because it got hit hard in the front end, but it could also get a salvage title if it's stolen and recovered 2 months later completely undamaged. I totalled a car not too long ago because the driver put gasoline in the diesel engine. No body damage, nothing, just put the wrong gas in.

If...and it's a big if...you are really careful and know what you're doing, you can save a ton of money and get a good car. But you could also get ripped off big time. If someone is on Autotrader selling lots of cars, all with salvage titles, it's a big red flag. His business may be "legit" in that he's not breaking a law. However he's likely just going to salvage auctions, buying cars, slapping them back together and selling them. That's a crap shoot at best. If you want a salvage title car, your best to buy it from the owner who had the car during the event that created the issue. Ask for documentation.

As for insurance, you'll have to ask your insurance companies. Some will only insure it for liability coverage. Some will give it full coverage, but at a reduced cash value for the car.

Klayfish wrote: I totalled a car not too long ago because the driver put gasoline in the diesel engine. No body damage, nothing, just put the wrong gas in.

Wait... Insurance covers stupidity???

Hocrest wrote:

Klayfish wrote: I totalled a car not too long ago because the driver put gasoline in the diesel engine. No body damage, nothing, just put the wrong gas in.

Wait... Insurance covers stupidity???

Yup. There's nothing in the insurance contract that states they won't cover a loss caused by someone's bad decision. Think of it this way...turning left in front of someone can be considered stupidity too.

My '91 Miata has a 'rebuilt' title from Minnesota and I have full coverage here in Wisconsin. How does that work?

I have a salvage title vehicle. I paid $100xx.

We are looking in the model years 2000-2006. Honda Accord and Toyota Camrys. Probably 50% have a salvage title and have 80k-120k miles. Those that are 180-250k miles are usually not salvage. Some of the sellers state it up front.

Its bad enough that I have been shopping on car lots.

Its going to come down to how well its repaired. Most aren't well done. If you can fix it, right on.

RossD wrote: My '91 Miata has a 'rebuilt' title from Minnesota and I have full coverage here in Wisconsin. How does that work?

The salvage branding follows the car for the rest of it's life, even if someone "washes" the title clean. So if your car got totalled, the insurance company will give you about 1/2 the normal cash value.

OP, Salvage cars usually cost a whole lot less, but there's a reason for it. An early-mid '00 Accord/Camry still fetches decent money.

Hocrest wrote:

Klayfish wrote: I totalled a car not too long ago because the driver put gasoline in the diesel engine. No body damage, nothing, just put the wrong gas in.

Wait... Insurance covers stupidity???

Of course! That's why it costs so much.

Here are some interesting choices that play the fringe a little more. That is, I know you are thinking Camry Accord but Altimas are just as good.
http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=76&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=312337876&Log=0

Mazda 6:
http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=101&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=316848721&Log=0

99 Accord:
http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=101&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=305678588&Log=0

Ford Escapes do not get the highest mpg but they are okay. The Mazda version is even less popular:
http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=76&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=315384143&Log=0

CRV: 99k miles asking $7k http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=76&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=317126332&Log=0

Of course, negotiate heavily on each one of them. I had guessed that the budget was "under $7k."
There are a lot of Buick LeSabres in that price range of less than 10 yrs old and less than 100k miles. I figured they may not be your daughter's style but if they could be they deliver reasonable mpg like 27 hyw (think 23 avg) with a ton of space and the reliable GM 3800 engine all in leather comfort.

'00 Integra 4 door w/125k miles ask $5k. Too small?
http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=1146325&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=151&maxMileage=100001&searchRadius=25&maxPrice=8000&showcaseListingId=315733522&minPrice=444&listingId=313984728&Log=0

Ranger50 wrote: Salvage title, according to my agent, makes a vehicle uninsurable for full coverage policies. I just disagree with the light hits being salvage, but a freaking rollover needing every panel replaced gets fixed and keeps it's "clear" title while being a rolling death trap.

yeah it's scary what happens with title branding. my dad hit a deer in his 99 S10 that i paid $1800 for. it took out the core support, LF fender, grill, headlights, bumper, radiator, fan, and ps pump. the adjuster comes out, looks, they tell him it's a total loss with $5600 in damage. he keeps truck for $500 and takes check, they make him brand the title salvage, we throw $500 in parts at it and the truck passes inspection and is back on the road. no structural damage. so that truck has a salvage title and there is nothing wrong with it. the ins co says he can still have full coverage, but they will not pay out on the truck again if it gets totalled.

then there is the buy here pay here lot up the street from his house. one day i see a rollback pulling an escort that was totally smooshed in the back up to the seat on the wheel lift. up on the flatbed is the rear half of another escort, same color. a few weeks later the "repaired" escort is out on the lot, with weld lines on the rockers and roof, like they took two car halves, welded them together, bondoed/painted the roof, and called it a day. there is no way it passed a salvage inspection so that means the car must have had a clear title.

then you get the theft recoveries that are nothing more than a car/truck missing the airbags, seats, and rims. nothing unsafe about those put back together but some of them still get branded titles.

jrw1621 wrote: Here are some interesting choices that play the fringe a little more. That is, I know you are thinking Camry Accord but Altimas are just as good. http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=76&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=312337876&Log=0 Mazda 6: http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=101&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=316848721&Log=0 99 Accord: http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=101&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=305678588&Log=0 Ford Escapes do not get the highest mpg but they are okay. The Mazda version is even less popular: http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=76&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=315384143&Log=0 CRV: 99k miles asking $7k http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=69770&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=76&maxMileage=100000&searchRadius=50&maxPrice=8000&showcaseListingId=316601366&minPrice=444&listingId=317126332&Log=0 Of course, negotiate heavily on each one of them. I had guessed that the budget was "under $7k."

I'm so glad you posted that. The Altima I had seen and its a potential car. The Mazda 6 and Accord are two of the cars offered by the squirrelly guy. Notice both are photoed at a church. He has a dozen + cars listed and he rarely provides the VIN. To get in touch with him isn't easy. He does this "on the side". The 98 Accord is the one we really wanted. I may give him another call and check the VIN, it I can get it.

The budget was $7000, but she may have to add to it to get what she wants.

jrw1621 wrote: '00 Integra 4 door w/125k miles ask $5k. Too small? http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=29319&endYear=2013&showcaseOwnerId=1146325&startYear=1981&bodyStyles=SEDAN%2CSUV%2CWAGON&firstRecord=151&maxMileage=100001&searchRadius=25&maxPrice=8000&showcaseListingId=315733522&minPrice=444&listingId=313984728&Log=0

The Googles say salvage and I thinks its the Squirrel.

The only salvage title vehicle I would buy are really cheap ones. No way would I pay more than half the price of a non-salvage title vehicle. Unless we're talking a less than $1,000 car in which case it doesn't really matter.

If I'm looking at a 25+ year old car, salvage title doesn't really bother me. I'll be extra thorough on the inspection and try and get the history. Don't forget to call your insurance company about it!

Now, on a newer car, especially for my daughter, I'd run the hell away. ESPECIALLY from the guy with dozens of cars "on the side". Those operations are really, really bad up here. They buy totaled cars from CoPart/auctions/banks and then slap them back together as cheap and as quickly as possible and flip them, pretending the whole time not to be a dealer. I guarantee none of the repairs are correct.

In this instance you are much better off just searching out a slightly older/higher mileage car so you can get a clean history and a known good car. Oh, and a +1 for any GM 3800 car. Check out Grand Prix GT's for a little more "sport" than the Buick. Mazda6's are great and Altima's as well.

My 944 Turbo was hit by a trailer truck then spun into a concrete divider on I 40. The truck was at fault, the car was totalled, the truck's insurance paid out, and I bought the car back from them. The title is still in my name, non salvage, never branded and I've ran autochecks and carfax on it which always come back clean. The only explanation I can think of is the insurance did not report the car as totaled. I repaired the car and now have a full coverage, agreed upon value, collector car policy on it.

Another similar story. My brother in law wrecked his f250...it was totalled and I bought it back. After I bought it I found out it needed to be inspected by the state of TN after being repaired. I asked why I didn't need to do this on the 944 and they indicated it was because it was over 10 years old. While that's probably true I imagine the bigger issue here is the 944 was never reported as being totaled. There seem to be a lot of inconsitencies as to how both insurance companies and states handle totaled vehicles. Does this make any sense to you insurance guys?

We had an outfit around here that was buying salvage title cars and selling them overseas. Drive into a lake? No problem! Drive off a cliff? No problem! Some of the tragedies they were selling we amazing, but I guess they figured by the time the car reached the retail buyer they were 3000 miles away and out of business.

In reply to Cotton:

I've personally owned (stripped) cars that looked like Monster Jam victims that were "clean" on CarFax, etc. They get most of their data from DMV's, not the insurance companies. If the insurance doesn't report to the state office, the "total" didn't happen.

In reply to Cotton:

Yes. It varies state to state. There is a certain age threshold where if the vehicle owner wants to buy the car back, the insurance company isn't required to make them convert the title to salvage. It's typically around 15 years, give or take. But that's dictated by the state, not the insurance company.

As to not showing up on Carfax, that's likely because the insurance company didn't report it, or isn't a member of the database that Carfax buys from (this is unlikely though). Carfax gets much of it's information from a large database that insurance companies report claims to. So if the company doesn't put the claim into their computer properly (wrong VIN, no VIN) then it won't show up on Carfax.

Javelin,

The accident info actually comes from the insurance database. Insurance companies don't report accidents directly to the state DMV.