Quote:
Originally Posted by JimGnitecki
Ron: I like almost everything you say and post, and the work you do on behalf of this forum, but you are not exactly an unbiased source on this since you OWN a salvage title Insight!! 
You are of coruse technically correct that a PROPERLY restored salvage vehicle can be every bit as good as a non-salvage vehicle, BUT the problems are:
1. The insurance company totaled it because the costs of properly restoring it exceed its resulting market valve, at least if the work is done "normally", i.e. via professionals who want to be paid for their work at their normal overhead burdened hours, and the parts are bought NEW, not used. |
I don't know if you've looked at the work done on mine. The previous owner hit something. Here's the total damage:
Front crush bumper strut pushed in 1" (straightened)
Radiator support bent and one connecting bracket torn (straightened and replaced the bracket)
Bumper cover torn (replaced with new cover)
Passenger fender shattered (replaced with one from a junkyard including wheelwell)
Lower control arm damaged (replaced with new)
Hood bent (repaired)
Washer fluid bottle damaged (replaced with one from a junkyard)
Does that sound like a reason to total the car? Does it sound like massive damage that someone should steer away from? Of course not. It was a minor fenderbender with damage to one wheel. The parts like the fender are simple bolt-on fiberglass parts. Used is fine.
Why was the car totaled? The airbags went off.
Two airbags: $1500 (NY requires new)
Airbag controller $600 (bought from a junkyard for $60)
Two seatbelts $550 (bought from a junkyard for $100)
Clockspring $40 new
Windshield (the bags broke it) $600 new
Passenger window (the bag broke it) $40 from a junkyard.
So there was $3000 of damage from the airbag deployment alone. That's why they totaled the car. Not because it was too damaged, but because the replacement parts cost too much.
Was my car restored properly? Yes with the exception of buying some of the big ticket items used instead of new. I don't feel there is anything wrong with using a used plastic fender or a used door window.
Quote:
Originally Posted by JimGnitecki
2. Because of 1. above, the restorations for most salvage vehicles are not done by professionals using new parts, but rather are done by moonlighters or amateurs using used parts, and often using 2 or more different damaged "donor" vehicles to rebuild ONE vehicle, and often in uninsured backyard garages without the normal quality controls in place in a liability-conscious insured pro shop. This introduces risk.
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Again, this wasn't an enourmous job like complete nose replacements. With the exception of the bodywork to the hood and straightening the radiator yoke, everything was simple bolt-in.
Quote:
Originally Posted by JimGnitecki
3. The risk introduced by 2. makes virtually no dealer willing to buy or sell a salvage vehicle, just because of the potential liabilities. That wipes out a huge chunk of any resale market. It leaves only private buyers, who don't understand all the above.
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As I said, this car now falls into the category of being a collectible and therefore dealers don't get involved - damaged or not. That was my point. It's no longer a commodity. Civic Hybrid - yes. Insight - no.
Many private buyers DO understand when a car has been rebuilt and that they need to determine if it has been rebuilt properly, because a properly rebuilt salvage vehicle is no different than an original one except for the stigma of the salvage title.
Quote:
Originally Posted by JimGnitecki
4. Those private buyers are further whittled down by the fact that you simply cannot get financing for a salvage vehicle. That creates two more problems: further limits the potential number of buyers, and makes it necessary to sell to a buyer market that has CASH, and that's a small market.
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Jim, these cars are selling from $2500 to $7000 with most of the old ones below $4000. Not many people go for financing for that much, and those that do are not getting auto loans for 10 year old cars. They are getting personal loans. I did. They knew it was for a salvage car that wasn't even road legal. They didn't care.
Quote:
Originally Posted by JimGnitecki
If YOU were to offer yours for sale, you'd probably be able to sell it fairly quickly to someone who is a regular on this forum, because we all know you and the work you do. But any stranger would not know you or your work. And, stranger or forum member, he or she would not be able to get financing, so it would have to be a buyer with the actual cash.
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I agree, but I don't think that would be a deterrant and I don't think that he should discount the car just because of the title. He needs to inspect it very carefully to ensure that the repairs were done properly.
Remember that these cars are getting to the point that collision coverage doesn't make sense on them, so ANY private car might be a rebuilt wreck, not just those with salvage titles.
