Buying a salvage vehicle?

O

orangecat

1,000+ Posts
Tough summer for me and vehicles:

1. Manual transmission goes out on '97 Nissan Pickup. 158,000 miles, I honestly feel as if the engine is just now getting broken in. I bought the truck new, it has outlasted 3 cars. Transmission is in limbo somewhere. My local one-man mechanic fixed it(he thought), but it wouldn't go into fourth gear. It's going into all others, I almost feel like asking him to cut his price way down and I'll just take four out of five, but I'm guessing that could help ruin the transmission in the long run.

Right now the only thing keeping me with this mechanic is the fact that he gave us a loaner car. I guarantee he will not charge anything for this beast. It's an old GMC Jimmy and -yuck!. I've had two flats in his car. A couple of weeks ago I called him to give him an update on his car, he updated me on my truck and then I interrupted him, "I'm giving you an update on your car", and asked him if he knew his Jimmy didn't have a jack or a tire tool.

2. As previously posted, on 8/11, I had a wreck, totalling our '05 family car, Kia Optima.

3. So here's the question, I can see myself buying a third car at some point in the near future anyway, so why not take a chance on a totalled '05 Kia Optima with a new timing belt and water pump?

The salvage value price from my insurance company is $1200, which is almost exactly 20% of total value + TT and L., so things haven't changed a bit in that regard.

Another option is to go bid on the car at auction. It might not go for much, unless some mechanics show up. The tires are not new, the interior is well-worn, and the right front side is bashed big time.

Anybody have an idea about how much something like this sells for?
 
I can't answer your specific question but have this to offer. My nephew bought a salvaged Jeep in Utah. He later moved to Florida and had all kinds of problems getting the car registered due to its salvaged status. So be sure to consider how Texas treats salvaged vehicles.
 
If the only reason it was totaled was due to the price of the repair vs. the value of the car, and you can fix it do it. As long as there is not too much body work and the frame is not bent. Make the body lines are up to par when you bondo it and hit with a paint spray and you'll be good. You can buy junked fenders, hoods, etc. at junk yards. If the engine and tranny is still good, go for it.
 
If you are asking if the price your insurance company has offered you if you keep it, that figure is correct. I work for an insurance company and handled totaled vehicles for a few years. 20% is what we average for vehicles when they sell at auction. Some higher(trucks), some lower( SUV's like Expeditions).
You can take your chances at the auction, but a smaller vehicle that gets good gas mileage is a prime commodity in the used car market.
 
Update: bought a new car! 2008 Mazda5 touring, good, not great deal. $18,689 + T,T, & L. NO BS from the dealer, it was a deal from the ad in the paper, no destination charge, no doc. fee, unbelievable lack of BS.

BillyW,thanks, the phrase "rolling total" was used by the man who settled on the Kia. The damage by the body shop was estimated at $4500, but with the possibility of more if there was more damage discovered when they pulled off the door.
He said the damage was right at 75%, which I thought was a little low for a total.

So this old man totaled the vehicle at $5500 + TT and L, and I received a letter from my credit union today, accepting the amount of ~5500(59xx - 500 deductible), and stating I am responsible for the outstanding amount. I have 'GAP + coverage', so I wasn't too concerned.

Anyway, mostly as a lark, I called the credit union this afternoon and asked about financing my little salvage vehicle, and they said they could finance up to 50% of the NADA before the vehicle was totaled!!
(maybe she read it wrong, and it is 50% of my purchase price of total?)

This sounds a little bit too good to be true to me, because she looked up my vehicle in their NADA, said it was worth $6800, so according to her I can get $3400 financed for a car I will probably buy for $1200, and then fix up for probably another $1000-1500. So, I could actually make money on the deal.

(Except that the money I make on the deal will be absorbed by my new insurance premiums!)

I will call my insurance agent on Tuesday to add the Mazda5 and ask him if he will insure my salvage. If he says yes to insuring the salvage, I will call my insurance company, tell them I plan on buying vehicle, and notify my body shop man.

A couple of questions.

1. Is there any TT and L to pay on a salvage?
2. Assuming insurance man says he can insure the salvage vehicle, when I get my pickup back, can I put both vehicles on insurance as "occasional use", because I will be alternating driving them to work? Probably drive the Kia twice a week, Nissan 3 times a week.
 
So, I'm taking a check over to the insurance company tomorrow. I'm picturing waiting for my credit union to mail the title to me, at which point I will go over to the salvage yard to pick up the vehicle.

(Or getting the credit union on the phone with the salvage yard, telling them I've paid off the insurance company, hmm, maybe a three-way phone call, insurance company, salvage yard, my credit union?)

Because of the new law, I'm thinking I should re-register the vehicle as a salvage vehicle after I do the minimum to get it driveable, which to me means getting an alignment. If I can register the vehicle as salvage with most of the damage remaining, I should only have to pay tax on the salvage value, which would mean $1200 X 6.25% = ~ $74.

I'm wondering if the salvage yard already has ripped off the title stickers?
 
OK, first you need to know if the insurance company is even reporting it to the state. This will depend on some numbers, but ask them first. If it isn't the title will not change to a salvage title.
Second, if they are the state will send you forms to fill out to get the title you have now changed to a salvage title. Once that is done it will not change to a rebuilt title unless you do all the repairs listed in the insurance company estimate.
If you have done this and want to change it to a rebuilt salvage title, THEN you will pay taxes off the retail value as I said before. Not the salvage value. The state has no idea what you paid for it in terms of the salvage value so they can only go based on NADA which is what they will use.

All this is a moot point if the company is not reporting it. Ask them about the ACOR(Adjusted Cost of Repair). If this is under 100% there is no reporting to the state.
Good luck.
 
The value of a salvage vehicle is usually considered to be about 50% of the loan value in the NADA used car guide.
 
Update. Received title in the mail from my insurance company. (Credit union released lien, there is signature and date on the title from the CU, then mailed title to insurance company) I'm guessing they didn't report to the state. Did you say if there is a limit on how long they have to send me the forms, if they reported the wreck to the state?

I'm thinking let the sleeping dogs lie, and not ask the insurance company if they notified the state. Then it appears I don't have to do anything but just keep driving. Or do I?

I'm guessing I should take a copy of the title to my local insurance agent, or will he already know since the company totalled the vehicle?

By the way, the Mazda5 must have some incredibly good crash records because supposedly my insurance is only going up $180 every six months. And that is adding a new vehicle, and reducing the Optima to underinsured/uninsured, and liability only.

All that needs to happen now is for my insurance company to subrogate. I'm planning on calling my adjuster and letting her know that they can expect a complaint with the TX Department of Insurance if they don't subrogate. Maybe she'll offer to do something then, who knows, it's worth a shot.
 
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