Scam, you have to be kidding. That is what is called valid information for consumers to know what they might purchase. Also some insurance companies will not cover a salvage title vehicle.
In many states itâs the LAWâŠthey MUST sell it back if you want itâŠand there are specific laws written on what that value will be. NH and NY itâs the highest bid the insurance company receives from a salvage yard. Unless you have a Rolls Royce the salvage bid is going to just a few hundred dollars.
Quite a few years ago there was a growing âindustryâ of taking 2 salvage cars and making one good one. Called a âclip jobâ in some circles. A front-hit FWD car leaves a fine rear end that can be welded onto the rear of a rear-hit car of the same vintage. Done correctly, it makes a perfectly fine car. Done in a shoddy fashion, its a death trap.
Laws were created to create the salvage title concept in those states that never had such a thing. Laws were also changed to categorize salvage, dismantled, or rebuilt titles to be treated differently. It used to be a practice that cars from a salvage title state were shipped to those that had no designation to âwashâ the title to remove the salvage category for resale elsewhere.
There are a lot of late model wrecks that result in being totaled with thousands in residual value.
Heck, my old Trailblazer was a $2500 buyback and might have been something I was interested in doing until the insurance rep said they wouldnât insure it afterward. OK, no brainer for me thenâŠ
Agree! A friend of my wife had her car stolen and after a futile search the insurance company paid her the market value. Then a call from the police announcing they had located her car on a remote farm. She bought it back without a problem; she was attached to the vehicle since it had belonged to her late sister who died from cancer.
It lived a happy further 6 year life.
Have bought lots of totaled cars from the insurance pool. Fix 'em up, get the âred sticker of deathâ, at least thatâs what we call it in Kansas. Have never had a problem putting liability insurance on these vehicles. Just not full coverage. I guess insurance only wants to buy the car one time. And no, I really could care less about cars. Theyâre just materials to me. Materials to be used.
I would have guessed a totaled car would be worth more than just a few hundred dollars. At least if it is say less than 10 years old, and a big seller. Youâd think there would be a big market for the parts. Just something like the oem radio youâd think would easily bring in $50 cash to someone in need of a replacement. Add to that the non wrecked fenders, the engine and sensors, the transmission, the alternator, radiator. Even something as simple as a rear tail light fixture would be worth $30 or so to someone who backed into a post and broke the plastic lens of their own car. For a 10 year old Corolla youâd think all that stuff would could be sold for $3000 or even more. What does a used 1.8 L Corolla engine go for? What does a used 5 speed M5 Corolla manual transmission go for? Thereâs got to be a big demand for items like that youâd think.
Insurance companies are not in the used parts business. That is why they sell the totaled vehicle to a salvage yard which is.
1 Like