Pros & cons of a salvage title?

[SteveJ]

F1 and all,

Since my car was crunched, we have been mulling over how to handle the insurance. I did file a claim with my insurance, and the other party filed a claim with his company. I spoke with the liability adjuster and also had the total loss adjuster stop by for a visit to see my car. I still need to provide him with more documents for him to get a valuation. (Should I send him to the Mobile Tradition rebuilt tii as a comp?)

The question arose: If my insurance company came back and said they would total the car, I would definitley take the claim money, buy the car back and fix it(and properly pay for all the generous FAQer donations). But if the car were considered a total and then rebuilt it would have a salvage title. What are the pros and cons of a salvage title?

If the salvage title has some serious cons, like being unable to insure for fair market value, I may just have to continue with fixing the car out of pocket in order to keep the title clean. Would that be correct? If I don't allow the insuarnce company to pay a total loss claim on the car, then it is not a salvage titled vehicle?

[f1reverb]

You would not get the FMV of a normal car on one with a salvage title. Reduce the cost of the repairs to below whatever limit would make it be totalled, say 60% or below of the current FMV. The insurance company will use a service normally that determines the FMV from dealer and private sales of a similar car, weighted to the location. Your job is to document the highest FMV you can by way of actual selling prices of similar vehicles, and for you normally private sale vehicles where the insurance company can verify the actual selling price. Ebay sales of similar cars is one source, craigslist, newspapers and other sources, but you need to provide for them to check if they want to.

Anything you've done beyond stock on the car and can document with receipts will bring the value up, as long as it back within a reasonable timeframe. If you've rebuilt the engine in the not too distant past you will get more than if you had higher miles on the engine without a rebuild. Some of the parts like the grilles are killer value these days. If the radiator were one of Kurt's that you got not too long ago and it was damaged there's more value. Do a google search on "establishing value of totalled car for insurance" or something similar and you'll find tons of info.

I think '02s are way overvalued these days, but for you that's good. I think any beater Tii that runs is a 5k car these days, if not a rust bucket, so I would think that is the base value now. Anyone on the board who's sold a similar tii can be a source of a documented sale too, and there should be at least ten of them. I've only seen your car in person twice, you remember the last time when I blew your doors off on the fwy, and I have some pics , but I didn't give it the Pebble Beach eye. Your paint's faded, but that might be easily brought back, so my guess is at least 10k as I don't know the mechanicals. Some of these articles on the Tii as being the great machine it is also mention values so review them as a possible source, including talking to the writer and see where he/she got the value they put in the article.

The more you keep the repair costs down, the better your chance of not having the car totalled. If you're a legal Prop 13 good driver, an insurance company has to insure you (there are ways they can get out of it) in a salvage vehicle, but if you became a Non-Good Driver then they don't have to insure you in a salvage titled vehicle. A salvage title ruins forever the monetary value of the car, even if there is nothing wrong with it at all. Used parts save money over new, so start there, and since you can get the car repaired where you want, having Dubois give you a break on the labor will also help. Besides, that Alpina A4 loaner Dubois has for his customers will mean you'll be happy if he takes his time.

[jonny]

In CT. I was gonna fix a car with a salvaged title.

THEN... I found out what was entailed at making the title "clean" again.

It included all reciepts and pictures of repairs along with a complete, thorough inspection by the DMV with fees for inspection among other fees..

It was not worth the effort, so I chopped and parted it.

It was a FREE car that ran great. Just needed a bumper, hood, fenders & head lights, etc. It would've been my daughters 1st car.

Thank God it was a friggin' Honda and NOT a 2002!!!

[cj]

I would stay away from a salvage title. It's a pain in the @$$. You'll have to get the car safety inspected, light inspection and some insurance companies may not cover a salvage title car(Jay would know better that I on that one). Not to mention it being like a "scarlett letter" for the car. I'd settle for whatever the insurance company will give you just before it becomes a total(60%), I think Jay said.

Cris

[Guest]

There are no advantages to salvage title unless you're buying a car with one and you KNOW it was repaired right (which is almost never). Fight the insurance company over both value and if it is totaled, if it comes to that.

The best way to convince them of the high value of your car is to make a book of reciepts, ads, and other appraisals (both professional and from "experts" -- like shops or VIP 2002 people). The insurance company places a waiting game and if you can be patient, you will prevail. If you want more info on how to beat them, let me know.....

[eastsidebimmer]

I purchased an E36 in 2001 from Zionsville Autosport that had a salvage title that was converted to a rebuilt title after restoration. I had the advantage of seeing the car before, during and after the process. When I went to sell it last year--I was only able to get kbb private party pricing, even though I had over $5K in documented upgrades I did after I purchased the car. The rebuilt title status will always haunt your car and give the potential buyer the advantage when making an offer. But if you like the car--fix it and keep it and worry about "future value" in the future!

This link has some nice "sold" examples:

http://www.2002haus.com/2002sSOLD.htm

[AndyS]

My M2 has a salvage title. I got a "story" about ti when I bought the car but the work was done in a most excellent fashion.

[norm]

One nice thing: When Conner starts driving the 2002 in a few years, he'll have an excuse if he crashes. Well Dad, you crash too.

Norm