Would you ever purchase a used vehicle with a salvage title?

[NLPRacing]

I ran across a used 2010 Ford Flex Limited EcoBoost for sale. It looks great and only has about 25,000 miles on it. It's fully loaded (can't find an option that it doesn't have). The asking price is only $25.000 OBO. The problem is, it has a salvage title. The owner emailed me the "before" pictures and the ad had "after" pictures and he's been very honest and upfront about everything. What do you all think? Should I give it a chance or run away as fast as I can.

[NLPRacing]

Here's another "before" repair pic.

[PREMiERdrum]

Hmmmmm....

I'm inclined to say no, just because there are so many things that could be affected by that much work being done, even years down the road.

 

However, there's a riskier streak in me that might go for it for the right price (certainly less than $25k though), provided a few things:

 

-Long, comprehensive test drive with a trustworthy mechanic along, and a thorough once-over by said mechanic (and, ideally, a body guy as well, to rate the quality of repairs).

-Check with your insurance company to see if 1. They would cover it and 2. It wouldn't be at an outrageous rate.

-Is there any chance of securing an aftermarket warranty? Even if only for mechanical issues, it could help insure against gremlins popping up after the fact.

 

It'd be hard to pass up at the right price, but the "what if's" are overwhelming.

[akirby]

The risk you run is if there was damage that wasn't fixed or wasn't fixed properly and you may not know that right away. I'd be worried about engine, transmission, driveshafts and the unibody itself. The rest should be fairly obvious.

 

How much are you saving vs. a non-salvaged similar vehicle?

[fordmantpw]

Though there appeared to be substantial front-end damage, it looks like they did a great job fixing it up. The price seems pretty good since that is a $40k+ vehicle new.

 

For me, it would depend on a couple things:

 

1) How long do you plan to keep it? If it is for a short period of time (3 years or less), I would lean toward no due to resale value. I'm not sure what would happen to resale value.

2) What happens with the warranty? Is it still valid? If so, that is a plus, and maybe you can get an extended warranty as part of the deal. I'm guessing the factory warranty is void on a salvage title, but I don't know that.

 

For me, if I were buying a daily driver to run errands and haul the kids around, I would be more inclined to buy a salvage than if I were buying a truck to tow my camper.

 

I would give it a good, long test drive and go over it with a fine-toothed comb, and maybe even have a mechanic check it out for any potential flaws. Looks like a nice ride!

 

EDIT: obviously, my post was a little slow and the others beat me to the punch, and they made some great points.

Edited February 16, 2012 by fordmantpw

[fordmantpw]

Just checked KBB, and private party retail is ~$31k (for my area), so about 20% off private party. For me, I would think he is about $2-3k high for me to take the chance, unless he is willing to throw in an extended warranty.

[NLPRacing]

Hmmmmm....

I'm inclined to say no, just because there are so many things that could be affected by that much work being done, even years down the road.

 

However, there's a riskier streak in me that might go for it for the right price (certainly less than $25k though), provided a few things:

 

-Long, comprehensive test drive with a trustworthy mechanic along, and a thorough once-over by said mechanic (and, ideally, a body guy as well, to rate the quality of repairs).

-Check with your insurance company to see if 1. They would cover it and 2. It wouldn't be at an outrageous rate.

-Is there any chance of securing an aftermarket warranty? Even if only for mechanical issues, it could help insure against gremlins popping up after the fact.

 

It'd be hard to pass up at the right price, but the "what if's" are overwhelming.

 

 

When I buy a used car, which isn't often, I always take it to my mechanic for a thorough inspection. Checking with the insurance company is good idea too, didn't think of that.

 

I'm a bit of a gambler, but $25,000 is a lot more than I usually gamble with. If I could pick it up for maybe $20K and if it checks out okay, I just may go for it.

 

The risk you run is if there was damage that wasn't fixed or wasn't fixed properly and you may not know that right away. I'd be worried about engine, transmission, driveshafts and the unibody itself. The rest should be fairly obvious.

 

How much are you saving vs. a non-salvaged similar vehicle?

 

This particular Flex had an original sticker over $48K. I haven't seen any similarly equipped & condition Ecoboost Flex's under $30K. That's why I am even considering it.

 

Though there appeared to be substantial front-end damage, it looks like they did a great job fixing it up. The price seems pretty good since that is a $40k+ vehicle new.

 

For me, it would depend on a couple things:

 

1) How long do you plan to keep it? If it is for a short period of time (3 years or less), I would lean toward no due to resale value. I'm not sure what would happen to resale value.

2) What happens with the warranty? Is it still valid? If so, that is a plus, and maybe you can get an extended warranty as part of the deal. I'm guessing the factory warranty is void on a salvage title, but I don't know that.

 

For me, if I were buying a daily driver to run errands and haul the kids around, I would be more inclined to buy a salvage than if I were buying a truck to tow my camper.

 

I would give it a good, long test drive and go over it with a fine-toothed comb, and maybe even have a mechanic check it out for any potential flaws. Looks like a nice ride!

 

EDIT: obviously, my post was a little slow and the others beat me to the punch, and they made some great points.

 

If I were to get it, it would probably be for the long haul and may be even become my oldest's first car in a few years.

 

My truck was wrecked twice, once I rear ended a Ranger and once my wife got hit by a Dodge Caliber. Once it was repaired properly, you couldn't tell it had ever been wrecked and actually felt tighter than before the wreck. But that's a BOF truck, not a unibody CUV.

 

That' a good point about the factory warranty, I wonder how I would check that out?

Edited February 16, 2012 by NLPRacing

[PREMiERdrum]

That' a good point about the factory warranty, I wonder how I would check that out?

 

Across the board, as far as I can tell, a salvage title voids any and all factory warranties, and it looks like the chance of getting an aftermarket warranty for one would be about zero.

 

If he's asking $25k, and you're comfortable with $25k, try to push it down to $20k and put the extra $5k in a savings account for issues that might pop up (and accrue interest!).

[fordmantpw]

That' a good point about the factory warranty, I wonder how I would check that out?

 

Given the VIN a Ford dealer should be able to give you the warranty status.

[carguy]

Do you know when a salvage title is issued? The only time a salvage title is issued is if the vehicle was declared a total loss by the inusurance company? Once I titled is marked as salvage it can never legally be changed. The only way I would ever buy a vehicle with a salvage title is if I needed a parts donor vehicle. Run don't walk away from this nightmare...

[DC Car Examiner]

Personally, I would go for a salvage title only for a low-cost disposable car, in which 1) the amount of damage wouldn't have to be very high for it to be declared totaled and 2) it wouldn't be a major problem financially if it turned out to be a problem.

 

With a $20k+ car, that's a pricey gamble. And a lot of your initial savings will be gone if you ever need to try and re-sell it.

[retro-man]

Seems like a lot for a totaled car. Unibody is very hard to straighten properly (although they have been doing it for decades). If the price is that much of an incentive, if your experience with your truck makes you more comfortable with the whole scenario, I suppose you might drive it. Check it at all speeds to make sure there's no vibration or pull under full, partial, and no throttle positions, and especially while braking. That would be the place where you would most likely feel it if the car wasn't straightened right. If it feels like a new car, and the extra 5 or 10 grand gives you goosebumps, what the hey.

 

I agree with DC though - I personally wouldn't do it with a high-ticket, high-depreciation item like a Flex. When I read the title of the thread without knowing what car and price we are talking about, my first thought was "Sure, if I were going to rat rod it." The other thing to think about is what it's gonna be like when you're the one trying to sell it.

Edited February 19, 2012 by retro-man

[Ron W.]

Should I give it a chance or run away as fast as I can.

 

Nancy Reagan comes to mind, just say no.

 

As far as factory warranty, unless the rules have changed all warranty is void except safety and emmision recalls.

[carguy]

Personally, I would go for a salvage title only for a low-cost disposable car, in which 1) the amount of damage wouldn't have to be very high for it to be declared totaled and 2) it wouldn't be a major problem financially if it turned out to be a problem.

 

With a $20k+ car, that's a pricey gamble. And a lot of your initial savings will be gone if you ever need to try and re-sell it.

Most insurance company will not declare a vehicle a total unless the repairs exceed 80% of the retail value.

[DC Car Examiner]

Most insurance company will not declare a vehicle a total unless the repairs exceed 80% of the retail value.

 

I'm finding sites that say it varies by insurer from 51 percent to 80 percent, with the costs being repairs + unrepaired salvage value.

 

If a car used up 80 percent of its retail value to be repaired, no one would rebuild a salvage car because the remaining 20 percent (or more) would be lost due to its salvage title. Plus, the owner would lose the opportunity cost of selling the salvage car's undamaged parts.

Edited February 19, 2012 by DC Car Examiner

[156n3rd]

I did, back in 1988. I bought a Taurus which was titled as a 1987. In fact, the entire cowl, front end and engine were a 1986. The odometer show 5,700 miles on the 87 half. I was shown records of the front section with matching numbers. That part had nearly the same mileage. Were the docs edited? Who knows. I drove this car for 8 years without so much as a hiccup. When it got over 130,000 miles on it, the trans started acting up. I nursed it along up to over 135,000, then traded it in a 1992 taurus L wagon with 47,000 on it. That's another story.

[carguy]

I'm finding sites that say it varies by insurer from 51 percent to 80 percent, with the costs being repairs + unrepaired salvage value.

 

If a car used up 80 percent of its retail value to be repaired, no one would rebuild a salvage car because the remaining 20 percent (or more) would be lost due to its salvage title. Plus, the owner would lose the opportunity cost of selling the salvage car's undamaged parts.

My statement is based on 35 years in the retail automobile business in the State of Michigan. Our body shop was consistanly in the top 5 in both parts and labor sales in the state.

[mettech]

No. Never...

[silvrsvt]

Do you have more photos of the front end damage?

 

Just a story....I rear-ended an Expedition with my Mustang...I nailed it with the Passenger side front corner of the car trying to cut the wheel to avoid hitting him.

 

 

 

 

Anyways, nearly a month and half later and over $12K in repair bills, I got the car back. They had to cut the passenger wheel subframe and the front clip that holds front facsia off to do the repairs.

 

That was back in 2007 and nearly 5 years later, I still have the car...I don't have any issues with the car either related to the accident.

 

The only thing that concerns me is that it looks like the front sub frame is twisted up past the "cut off" point that they had built into my Mustang subframes...

[BrewfanGRB]

I'm finding sites that say it varies by insurer from 51 percent to 80 percent, with the costs being repairs + unrepaired salvage value.

 

If a car used up 80 percent of its retail value to be repaired, no one would rebuild a salvage car because the remaining 20 percent (or more) would be lost due to its salvage title. Plus, the owner would lose the opportunity cost of selling the salvage car's undamaged parts.

 

I WORK for an insurance company. As a rule of thumb, we use 70% of actual cash value as the threshold for declaring it total loss. Although, there may be state-specific laws that vary that threshold.

 

Back to the original question(s).

 

As far as insurance companies insuring it: We require what we call a certified mechanic statement (basically, our own document that requires all systems/areas of the vehicle being checked off as being in "safe operating condition" and it has to be done by a licensed or certified (think ASE) mechanic) and pics of all 4 sides of the vehicle, showing no damage. We will offer full coverage if the statement is acceptable and there's no damage. But keep in mind, actual cash value is essentially market value. A salvaged vehicle inherently has a lower market value (as the original poster's example shows) and it drops faster. That's makes insuring it for full coverage a dicey proposition (IMO).

 

Personally, it's all about how confident you are in the repairs that were completed and how much risk you're willing to assume. On one hand, you have the opportunity for an otherwise high-quality, "nicer" vehicle for far less money. On the other, if something goes wrong, you either find yourself potentially throwing money into a pit or having a brick. I tend to think vehicles overall are that much more reliable anyway, so if the repair was very well done and you get a very good deal, it's worth at least considering.

[NLPRacing]

Thanks to everybody for the replies. I will probably stay away from salvage titles unless it's just too good of a deal to pass up. I found another one on eBay (with a clear title), just wish it was closer to Texas.

[fordmantpw]

Thanks to everybody for the replies. I will probably stay away from salvage titles unless it's just too good of a deal to pass up. I found another one on eBay (with a clear title), just wish it was closer to Texas.

 

That one is in Maryland...maybe Nick or silversvt can go test drive it for ya.

[goinbroke2]

Interesting comments, maybe I look at things differently because I am a mechanic but I bought a 06 freestar with 30,000km's on it for $10,000 for the wife to drive. It now has 198,000km's and I've replaced the coil pack and brakes. The only concern I had was a loud humming noise from the front right around 120kph that goes away in a right sweeping turn and gets worse in a left...obviously a wheel bearing right? Well it was a bargaining point but I checked it and the bears were good. 170,000km's later it still sounds the same, still tight.

 

So, no I have no problem buying a veh with a salvage title. That said, every purchase is different and I won't buy a vehicle with a good title unless it fits my need/price/etc so I won't buy one with a salvage title unless it fits the same needs.

The fact of the salvage part though? Naw.

[akirby]

I would be much more likely to buy a vehicle with a salvage title if I bought it as is and did the repairs myself (or had them done under my supervision). This way you know what was damaged and you know how it was fixed. You can also save enough money by doing the repairs yourself to make it worthwhile.

 

Buying one that somebody else repaired is risky and less of a bargain financially because you're paying for their markup on the original vehicle and repairs.

[twintornados]

Find out why the insurance company ran it through "salvage"....the car may have been stolen, then wrecked and recovered....if however, the damage was caused by Hurricane Sandy and the car was damaged by being tossed into something and flooded out...you may want to pass on this one...