How much does salvage title affect value

WhiskeyPapa · 06-08-2004, 08:15 AM

I'd like to buy a used Lexus RX300 or RX330 sometime within the next year. I found a 2001 RX300 with 37k at an auction last week. This would normally sell for about $25k, but this one in particular has a salvage title. It is owned and currently being driven by the wife of a guy who owns a body shop. He did a great job on it. I was high bidder, but the bidding only went up to $7500, and no one else bid, so they moved on without selling it.

I'd like to call the guy and make an offer, but I have no clue how low to start. How much should a salvage title affect the cars value?

cheapie · 06-08-2004, 08:24 AM

wow. the family guy is buying a lexus?

very nice papa.

DarkFury · 06-08-2004, 09:12 AM

Quote:

Originally Posted by kb0wwp

I'd like to buy a used Lexus RX300 or RX330 sometime within the next year. I found a 2001 RX300 with 37k at an auction last week. This would normally sell for about $25k, but this one in particular has a salvage title. It is owned and currently being driven by the wife of a guy who owns a body shop. He did a great job on it. I was high bidder, but the bidding only went up to $7500, and no one else bid, so they moved on without selling it.

I'd like to call the guy and make an offer, but I have no clue how low to start. How much should a salvage title affect the cars value?

With a "salvage title", I'd think that this would RUIN the car's value as a whole automobile...

Personally, I wouldn't want to drive a car that had a "salvage title". No friggin' way...

But if you wanna go for it, then I wouldn't pay much more than 1/3 of the current blue book on it since pretty much the resale value on it is shot to hell.

Quote:

From: http://www.carsdirect.com/help_cente...sed_car_prices

Salvage Title. Watch out for this red flag; it means that a vehicle was determined to be "totaled" by a previous owners' insurance company, but the owner decided to get it fixed anyway. Salvaged vehicles are significantly more likely to have mechanical and cosmetic problems than vehicles with clean titles. Not surprisingly, used car prices for vehicles with a salvage title are much lower than for clean vehicles. You can make sure a vehicle doesn't have a salvage title by running a Vehicle History Report at AutoCheck.com.

Quote:

From: http://www.edmunds.com/advice/buying...7/article.html

Salvage Title Cars

Mention to a prospective buyer that the car has a salvage title, and they run in terror. Still, others have owned these cars and driven them for years. What is a salvage title and can these cars ever be a smart buy?

When a car has been severely damaged (either in an accident, or because of a flood or theft) the insurance company estimates how much it will cost to fix. At some point, the cost of repairs is more than the car is worth. Therefore, the car is often sold to a salvage company and used for parts. To protect future buyers, the car is given a salvage title.

In some cases, the salvage company, or an enterprising body shop, might fix up the car and try to sell it. Naturally, the price of the car will be below similar models' because it has a salvage title. The danger is that the car was improperly repaired. The biggest problem is with the alignment of the wheels — if the frame has been bent, it is difficult and expensive to straighten. A bent frame will cause abnormal tire wear and improper handling characteristics.

"Some states require (totaled) vehicles to be branded as salvage cars," Lovejoy said. "But if it is sold in another state, and re-titled, it can be sold to Mrs. Jones as a straight-up used car. She doesn't know it has been cut together from pieces of different cars."

I remember a "Dateline" from over a year ago when they discussed cars that had salvage titles but were being shipped out of state and renewed with a clean title... and the problems those cars had and the dangers they presented.

Pretty much, are you confident that this car is SAFE and was properly restored by the body shop guy who fixed it? Will he provide you any guarantees if you buy it? (most likely not...)

Personally, I'd stay far far away from this.... but I can't tell you how to spend your money. Good luck if you decide to go for it.

look_ma · 06-08-2004, 09:25 AM

Well put DF. Especially since this guy works at/owns a body shop. If intened on selling it to begin with, he most likely cut corners. IE frame not straiten properly, no air bags, frame breaks during a crash in the wrong place. I mean if you got a hell of a deal on it is one thing, but to pay anywhere near blue book for it is crazy. The probably the only way I would buy a salvaged car is if was a flodd savage and I was going to redo the car, or I saw the car when it was wrecked and knew it was a good shop that did the repairs.

Bires · 06-08-2004, 09:30 AM

You may also find it VERY hard to insure, since most salvage titles have been wrecked and the impact beams, firewall, and airbags don't work to protect passengers anymore.

johnnymk · 06-08-2004, 09:33 AM

For $7500, I would grab it. But have it inspected first by a mechanic and another body shop.
It's not hard to total a car nowadays, considering the high cost of parts and labor. Plus , since the guy fixed it himself, he saved a bundle.
Reselling it could be a different story, though, but if you want to keep it, it could be a very good deal.

ramazank2 · 06-08-2004, 10:12 AM

I have had a 1995 Chevy blazer with a salvage title for almost 7 years and I have had no problems due to it being salvaged. Before I bought it I checked the frame to see if there were any major deformities and I also checked for frame welding spots. Another good test is to take it on the freeway at about 80mph and see how far off the alignment is. I bought it in 98 for about 1/2-2/3 low bluebook. I was trying to sell it a while back and had no takers so I decided to keep it till I can get my hands on a Lexus RX400H. I would definetly look into that Lexus. If not give me the guys number so I can take a look at it. If it is top of the line loaded and passes a few checks I would consider paying up to 16000.

Of course only consider this if you plan on keeping the car for 10-15 years. If you are one who wants a new car every 2-4 yrs like many americans forget it, because it will be difficult to sell.

Nanotech9 · 06-08-2004, 11:34 AM

in response to bires...

i have several friends that restore totaled or damaged cars for a living. they doo good work, and restore them to a safe and useable status.

when a car gets salvaged (could be for just cosmetic damage, or because of structure damage) it usually goes through the insurance pool - an online auction like copart or maybe a local auction. ONLY licensed salvage dealers can buy these cars. They buy the car and get a salvage title. Then, they rebuild the car. I believe they have to be re-equipped with all factory safety features (i.e. airbags) before they take the car to inspection and have it pass a special salvage / rebuild inspection. Once it passes, then its assigned a rebuilt title.

I ride a rebuilt motorcycle - i bought it salvaged from a dealer friend, rebuilt it myself, he took it in for the instpections, and got me my rebuilt title.

i've owned a salvaged car before. ran / drove fine... its only the poorly rebuilt ones that drive bad and are unsafe.

Heres more details:

Quote:

Clear
A Clear title is assigned to a vehicle with no previous Salvage notations, legends or sub-brands.

Salvage
A Salvage title is assigned to a vehicle that has been declared a total loss resulting from Fire, Vandalism, Collision, Theft, Flood or other occurrence. Salvage titles are further broken down into two categories:

Repairable
A Repairable Salvage title is assigned to a vehicle that has been salvaged but can be repaired. This title requires a sub-brand of Fire, Vandalism, Collision, Theft or Flood.

Parts-Only
A Parts-Only Salvage title is assigned to a vehicle that can only be sold as parts due to excessive damage. The vehicle can never be re-titled or re-registered. A Parts-Only title does not require a sub-brand and is labeled with a junk status.

Reconstructed
A Reconstructed title is assigned to a vehicle previously titled as Salvage-Repairable and has been repaired and inspected. This title requires a sub-brand of Prior Fire, Vandalism, Collision, Theft or Flood.

Recovered Theft
A Recovered Theft title is assigned to a vehicle previously titled as Salvage-Repairable with minimal damage. This title requires a sub-brand of Prior Fire, Vandalism, Collision, Theft or Flood.

Owner Retained
An Owner Retained title is issued to a currently registered vehicle appraised as total loss that the owner has opted to keep. An Owner-Retained vehicle is not required to go through the salvage inspection process.

DarkFury · 06-08-2004, 12:58 PM

Quote:

Originally Posted by johnnymk

For $7500, I would grab it. But have it inspected first by a mechanic and another body shop.
It's not hard to total a car nowadays, considering the high cost of parts and labor. Plus , since the guy fixed it himself, he saved a bundle.
Reselling it could be a different story, though, but if you want to keep it, it could be a very good deal.

The problem here is... he already "bid" $7,500 for it and they didn't accept that bid... therefore I'm thinkin' that the seller wants MORE for it.

1/3 of $25,000 is $8,333... which is probably the MOST I would advise paying for something like this.

bachviet · 06-08-2004, 01:05 PM

If accident caused the car to be "salvaged", I would not buy it. If the car is stripped, then I would buy it.

nomoney · 06-08-2004, 05:13 PM

Quote:

Originally Posted by DarkFury

1/3 of $25,000 is $8,333... which is probably the MOST I would advise paying for something like this.

You could probably sell the parts for more than $8333. It is worth more than that. It may be worth way more than that. The history of the vehicle should be known before such a judgement is made. It is pretty easy to "total" a vehicle these days...

ray · 06-08-2004, 05:20 PM

Quote:

Originally Posted by johnnymk

For $7500, I would grab it. But have it inspected first by a mechanic and another body shop.
It's not hard to total a car nowadays, considering the high cost of parts and labor. Plus , since the guy fixed it himself, he saved a bundle.
Reselling it could be a different story, though, but if you want to keep it, it could be a very good deal.

I would personally stay away from it, but if you are insistent on buying the car, definitely definitely bring it to a Lexus Dealership and have THEM inspect it. If anybody is going to know the rebuilding, it's those guys.

InfiniteNothing · 06-08-2004, 07:37 PM

8333 sure sounds good for a lexus. I think you'd have to ask yourself what it would worth to you new and then estimate the average cost of repairs on the salvaged vehical.

My quick math says that you should do it for half of what you (personally) would pay new. So if the car is worth 18,000 to you new you should be 9K

DarkFury · 06-08-2004, 07:50 PM

Quote:

Originally Posted by PsillyPyro

You could probably sell the parts for more than $8333. It is worth more than that. It may be worth way more than that. The history of the vehicle should be known before such a judgement is made. It is pretty easy to "total" a vehicle these days...

A whole car is worth less than the sum of its parts...

Don't believe that... try to build one from scratch using parts from the dealer part catalog.

As a "salvage title", the price I quoted above would still stand.... or he can keep the mofo.

Obviously the folks at the "auto auction" agree... cause they didn't want to give him more than $7,500 for it. But hey... if a "CONSUMER" is stupid enough to pay more for it, I'm sure that there is a sucker born every minute.

Nanotech9 · 06-08-2004, 09:04 PM

how many of you have actually owned a rebuilt vehicle? or have been around people who rebuild them for a living?...

the "its only worth 1/3rd" is BS. its worth more like 2/3rds or maybe even 3/4 or a regular titled vehicle if the repairs were done right.

say the car is worth 18k... probably went through auction for 9k or 10k (depending on damage) and then the fellow spent maybe 3 - 4k fixing it up RIGHT.

my guess is its worth between $13k and $15.5k. Thats just a rough mental guess based on vehicles i've seen go through my friends lot, and one of my own vehicles.

Bires · 06-08-2004, 09:49 PM

How much will insurance say it's worth when it gets smashed by a drunk driver?

InfiniteNothing · 06-08-2004, 10:00 PM

Quote:

Originally Posted by Nanotech9

how many of you have actually owned a rebuilt vehicle? or have been around people who rebuild them for a living?...

the "its only worth 1/3rd" is BS. its worth more like 2/3rds or maybe even 3/4 or a regular titled vehicle if the repairs were done right.

say the car is worth 18k... probably went through auction for 9k or 10k (depending on damage) and then the fellow spent maybe 3 - 4k fixing it up RIGHT.

my guess is its worth between $13k and $15.5k. Thats just a rough mental guess based on vehicles i've seen go through my friends lot, and one of my own vehicles.

I have. The thing cost me more than it was worth in repairs though that wasn't much.

DarkFury · 06-08-2004, 10:27 PM

Quote:

Originally Posted by Nanotech9

how many of you have actually owned a rebuilt vehicle? or have been around people who rebuild them for a living?...

the "its only worth 1/3rd" is BS. its worth more like 2/3rds or maybe even 3/4 or a regular titled vehicle if the repairs were done right.

say the car is worth 18k... probably went through auction for 9k or 10k (depending on damage) and then the fellow spent maybe 3 - 4k fixing it up RIGHT.

my guess is its worth between $13k and $15.5k. Thats just a rough mental guess based on vehicles i've seen go through my friends lot, and one of my own vehicles.

Thats fine if YOU feel that way... but I sure as hell ain't gonna buy it for that price.

Call it BS if you like (nice to know you respect my OPINION).

WhiskeyPapa · 06-09-2004, 07:14 AM

Thanks for the info, guys. At the auction, they listed exactly what work had been done to the vehicle. From the description, it appears like it sustained some serious driver side damage, consistant with what you'd expect from a broadside hit. I think I may just pass on this and save my money for a certified used Lexus in a year or so.

bachviet · 06-09-2004, 07:16 AM

Quote:

Originally Posted by kb0wwp

Thanks for the info, guys. At the auction, they listed exactly what work had been done to the vehicle. From the description, it appears like it sustained some serious driver side damage, consistant with what you'd expect from a broadside hit. I think I may just pass on this and save my money for a certified used Lexus in a year or so.

Smart move

cheapie · 06-09-2004, 07:17 AM

Quote:

Originally Posted by DarkFury

Thats fine if YOU feel that way... but I sure as hell ain't gonna buy it for that price.

Call it BS if you like (nice to know you respect my OPINION).

yeah but df, we all know you. you're the guy that buys brand new cars, buys the extended warranty, pays for AAA, and makes sure he keeps a charged phone w/him just in case. we're not all such big puss...errr, that conservative.

DarkFury · 06-09-2004, 08:41 AM

Quote:

Originally Posted by cheapie

we're not all such big puss...errr, that conservative.

/me waits for the day that you'd say that to my face...

But oh.. that's right, you are no longer allowed to come back to Indiana (Heh... you'd betta move outta my way!!!).

06-08-2004, 08:15 AM	#1
WhiskeyPapa Rear Admiral Upper Half Join Date: Jul 2000 Location: 45° 11' 35" North Latitude, 95° 8' 37" West Longitude Posts: 3,427	How much does salvage title affect value I'd like to buy a used Lexus RX300 or RX330 sometime within the next year. I found a 2001 RX300 with 37k at an auction last week. This would normally sell for about $25k, but this one in particular has a salvage title. It is owned and currently being driven by the wife of a guy who owns a body shop. He did a great job on it. I was high bidder, but the bidding only went up to $7500, and no one else bid, so they moved on without selling it. I'd like to call the guy and make an offer, but I have no clue how low to start. How much should a salvage title affect the cars value?

06-08-2004, 08:24 AM	#2
cheapie Chief of Naval Operations Join Date: Aug 2002 Location: raising my pimp hand strong Posts: 13,038	wow. the family guy is buying a lexus? very nice papa. __________________ 70% of the world is covered by water. The rest is covered by Bob Sanders

06-08-2004, 09:30 AM	#5
Bires Admiral Join Date: May 2000 Posts: 5,064	You may also find it VERY hard to insure, since most salvage titles have been wrecked and the impact beams, firewall, and airbags don't work to protect passengers anymore. __________________ Five years...

06-08-2004, 09:33 AM	#6
johnnymk Chief of Naval Operations Join Date: May 2000 Location: LEVITTOWN< PA> USA Posts: 13,621	For $7500, I would grab it. But have it inspected first by a mechanic and another body shop. It's not hard to total a car nowadays, considering the high cost of parts and labor. Plus , since the guy fixed it himself, he saved a bundle. Reselling it could be a different story, though, but if you want to keep it, it could be a very good deal. __________________ “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.” (Winston Churchill)

06-08-2004, 01:05 PM	#10
bachviet What's Da Pho*? Join Date: Aug 2001 Location: SoCal (714) Posts: 13,296	If accident caused the car to be "salvaged", I would not buy it. If the car is stripped, then I would buy it. __________________ Dell Dimension 9200 \| Intel Core 2 Quad Q6600 (2.4GHz) \| 4x1GB DDR2 \| 256MB nVidia GeForce 8800GT Dell Studio 17 \| Intel Core i7-720QM (1.6GHz) \| 2x2GB DDR3 1066MHz \| 1GHz ATI Mobility Radeon HD 4650 Intel P4-C 3.0GHz \| ECS 865PE-A \| 3x512MB PC3200 \| 128MB PNY GeForce 6600GT

06-08-2004, 10:12 AM	#7
ramazank2 Commander Join Date: Jun 2000 Location: Costa Mesa, CA Posts: 1,295	I have had a 1995 Chevy blazer with a salvage title for almost 7 years and I have had no problems due to it being salvaged. Before I bought it I checked the frame to see if there were any major deformities and I also checked for frame welding spots. Another good test is to take it on the freeway at about 80mph and see how far off the alignment is. I bought it in 98 for about 1/2-2/3 low bluebook. I was trying to sell it a while back and had no takers so I decided to keep it till I can get my hands on a Lexus RX400H. I would definetly look into that Lexus. If not give me the guys number so I can take a look at it. If it is top of the line loaded and passes a few checks I would consider paying up to 16000. Of course only consider this if you plan on keeping the car for 10-15 years. If you are one who wants a new car every 2-4 yrs like many americans forget it, because it will be difficult to sell.

06-08-2004, 07:37 PM	#13
InfiniteNothing Chief of Naval Operations Join Date: Aug 2002 Location: San Diego Posts: 10,086	8333 sure sounds good for a lexus. I think you'd have to ask yourself what it would worth to you new and then estimate the average cost of repairs on the salvaged vehical. My quick math says that you should do it for half of what you (personally) would pay new. So if the car is worth 18,000 to you new you should be 9K __________________ As for our common defense, we reject as false the choice between our safety and our ideals.

06-08-2004, 09:04 PM	#15
Nanotech9 Vice Admiral Join Date: Feb 2000 Location: Gone Wheeling! Posts: 4,409	how many of you have actually owned a rebuilt vehicle? or have been around people who rebuild them for a living?... the "its only worth 1/3rd" is BS. its worth more like 2/3rds or maybe even 3/4 or a regular titled vehicle if the repairs were done right. say the car is worth 18k... probably went through auction for 9k or 10k (depending on damage) and then the fellow spent maybe 3 - 4k fixing it up RIGHT. my guess is its worth between $13k and $15.5k. Thats just a rough mental guess based on vehicles i've seen go through my friends lot, and one of my own vehicles.

06-08-2004, 09:49 PM	#16
Bires Admiral Join Date: May 2000 Posts: 5,064	How much will insurance say it's worth when it gets smashed by a drunk driver?

06-09-2004, 07:14 AM	#19
WhiskeyPapa Rear Admiral Upper Half Join Date: Jul 2000 Location: 45° 11' 35" North Latitude, 95° 8' 37" West Longitude Posts: 3,427	Thanks for the info, guys. At the auction, they listed exactly what work had been done to the vehicle. From the description, it appears like it sustained some serious driver side damage, consistant with what you'd expect from a broadside hit. I think I may just pass on this and save my money for a certified used Lexus in a year or so.

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