You think the price for that vehicle with a salvaged title is too good to be true? It probably is.
Dear Car Talk | Aug 01, 1999
Dear Tom and Ray:
for "great deals" in the paper and online for '97s and '98s. I came across a 1998 with less than 8,000 miles on it for only $12,500 and thought, "Hmm ... what's the
catch?" To make a long story short, it has a salvaged title. The new owner, who is not the original owner who "totaled" the car, told me that the hood and windshield
were replaced and that all four doors were damaged and repaired. He also told me that the drivetrain was not damaged. Could such body damage be enough to reduce the
price by this much? And is there any way I can find out more about this particular car -- like by having an insurance agent look up the VIN? And what do you think of
the idea of buying a salvaged car? -- Nichole
RAY: I'd proceed very cautiously, Nichole, if at all. The salvage laws vary from state to state, so you have to check with your local department of motor vehicles (hope
you have a phone with automatic redial!). But here's how the rules work in most states.
TOM: If an insurance company determines that a car has sustained damage that exceeds a certain percentage of the car's value (usually 50 percent to 70 percent), the
insurance company "salvages" the car, takes possession of it and makes some sort of monetary settlement with the owner.
RAY: That car is then branded with a "salvage" or "damaged vehicle" title, identifying it as having been severely damaged and not roadworthy.
TOM: If the buyer of a salvaged vehicle then fixes up the car, he or she can then get it inspected by the state. The state will want to see the original insurance assessment
of the car and the receipts of all the work done and the parts replaced. If the state is convinced that the salvaged car has been made roadworthy and safe, and that all
necessary repairs have actually been done, the state will issue a "reconstructed" or "rebuilt" title.
RAY: So since the car you're looking at has a "salvaged" title, it has NOT been reconstructed yet -- or, at least, not to the satisfaction of anybody other than the seller.
TOM: If you were to find a car with a reconstructed title, you would be able to go to your state's department of motor vehicles and request the paperwork on the car's
reconstruction inspection. That'll tell you what was damaged originally and exactly what work was done.
RAY: But in your case, you have no choice but to take the seller's word for what was damaged and repaired.
TOM: So I'd be very wary of this car. While body damage can be very expensive and can result in a substantial reduction in the value of a new car, you really don't
know that the damage was limited to the body. Even if the drivetrain is fine, the frame and suspension are likely to have been damaged, and the car may never steer
straight or may eat through sets of tires every six months.
RAY: So I'd keep looking, Nichole. This deal sounded a little too good to be true because it probably is.
for "great deals" in the paper and online for '97s and '98s. I came across a 1998 with less than 8,000 miles on it for only $12,500 and thought, "Hmm ... what's the
catch?" To make a long story short, it has a salvaged title. The new owner, who is not the original owner who "totaled" the car, told me that the hood and windshield
were replaced and that all four doors were damaged and repaired. He also told me that the drivetrain was not damaged. Could such body damage be enough to reduce the
price by this much? And is there any way I can find out more about this particular car -- like by having an insurance agent look up the VIN? And what do you think of
the idea of buying a salvaged car? -- Nichole
RAY: I'd proceed very cautiously, Nichole, if at all. The salvage laws vary from state to state, so you have to check with your local department of motor vehicles (hope
you have a phone with automatic redial!). But here's how the rules work in most states.
TOM: If an insurance company determines that a car has sustained damage that exceeds a certain percentage of the car's value (usually 50 percent to 70 percent), the
insurance company "salvages" the car, takes possession of it and makes some sort of monetary settlement with the owner.
RAY: That car is then branded with a "salvage" or "damaged vehicle" title, identifying it as having been severely damaged and not roadworthy.
TOM: If the buyer of a salvaged vehicle then fixes up the car, he or she can then get it inspected by the state. The state will want to see the original insurance assessment
of the car and the receipts of all the work done and the parts replaced. If the state is convinced that the salvaged car has been made roadworthy and safe, and that all
necessary repairs have actually been done, the state will issue a "reconstructed" or "rebuilt" title.
RAY: So since the car you're looking at has a "salvaged" title, it has NOT been reconstructed yet -- or, at least, not to the satisfaction of anybody other than the seller.
TOM: If you were to find a car with a reconstructed title, you would be able to go to your state's department of motor vehicles and request the paperwork on the car's
reconstruction inspection. That'll tell you what was damaged originally and exactly what work was done.
RAY: But in your case, you have no choice but to take the seller's word for what was damaged and repaired.
TOM: So I'd be very wary of this car. While body damage can be very expensive and can result in a substantial reduction in the value of a new car, you really don't
know that the damage was limited to the body. Even if the drivetrain is fine, the frame and suspension are likely to have been damaged, and the car may never steer
straight or may eat through sets of tires every six months.
RAY: So I'd keep looking, Nichole. This deal sounded a little too good to be true because it probably is.
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