Totaled vehicles...sometimes surprising.
I’ve often wondered how the large numbers of “rebuilt” vehicles with “light damage” for sale can be real and not just a line of bs by the seller. Had one example years ago. Guy at work literally “ta...
Forum Discussion
I have been in the rebuilding business (part time) for a short while so have some experience with these salvage titles.
My first project was a 07 F350 King Ranch with 67k one owner from TX. It was listed as recovered steal (salvage title) and as a non runner. The interior was removed but I believe most people didn't like the non running designation so bid less. I zoomed in pictures and saw that the ignition lock was stripped and figured the yard hands couldn't start it with key and won it at auction. I searched online for parts and cost was looking at 4k from different places so I decided to buy another accident wrecked F350 KR for about 5K and towed them both to Ford (before I had built shop relationships) and had them swap out interior and steering wheel column and parted out the rest of the wrecked F350 (sold drivetrain for 3K). I kept that truck a year waiting on the state snafus in converting the title and sold it to a roofing business as their estimator truck for 15K. A year later they called seeing if I had another one but that one was a rare find.
In regards to insurance formulas that applies to the majority but for some it can be more involve more variables than repair values/actual values. One can walk at any insurance auction lot and see cars with little or no damage with salvage or even worst parts only title (can't be driven/converted in most states) and see a crumpled up burnt frame with a clean title.
I bought a minor frontal hit 2010 Navigator non running that I gambled on it being non running because the inertia fuel pump switch wasn't reset. I even called the yard and asked them do they reset the switch and they said yes but I didn't go check it out myself at the time (not smart) just gambled because the grille only had been damaged. When I picked it up and got it home I recharged battery (most are low or dead from the sitting) and reset switch and it started. I got it repaired and converted title and sold it to law enforcement officer who loved it. Every buyer is told the history and the process and given copies of the receipts (they assume remaining warranty on repairs).
Legal definition of flood damage in many states is water touching bottom of car which means some flood damage cars are not damaged. I used to buy them cheap for parts donor cars for accident repair projects and some listed as non running drove right off my trailer with no issues. I think some insurance companies do not want them started so most are listed as non runnning but lately I see that Copart will sell them listed as runners. Albeit most of them on lots have water in cabin and many electronics problems. But someone willing to do due diligence could get a vehicle at substantial savings.
In IL you have to convert salvage title to rebuilt (some states you don't) to plate and insure them. The vehicle has to be repaired, DOT inspected then depending on year you will need a 2nd state inspection (for stolen parts) then a licensed rebuilder can apply to the state for a rebuilt title.I have insured more than a few with full comprehensive with Allstate so I haven't encountered issues in that regards either. In surrounding states a private owner can complete the title conversion process without the 1 (up to 3) month wait for title we have here. I used to sell good projects as I got them for DIY'ers to complete after I got a lot of requests for projects vs finished and the state was backlogged with title conversions. You can finance rebuilt titles with many credit unions and some banks but it is correct most places won't. My municipal credit union years back would finance salvage title vehicles I was told.
Just recently I got a 2010 Ford Taurus SHO with salvage title that had a dented fender and flat tire. I always wanted an ecoboost car so I took the chance that there was undercarriage damage since the front tire was flat. Once I got it to shop found out there was a nail in the tire and bought a replacement fender and had it painted and scratch removed from bumper cover and drove it for a quick while before selling it to a couple who converted the title themselves in border state. How can an insurance company salvage a title over $75 fender even if they included the $500 in new tires I got because it was AWD for a clean loaded vehicle? The buyer like many keeps contact with me because they love the savings they got on car (paid 5k) and so far no other issues.
I bought a 2nd ecoboost this time a MKS with grille cracked, broken headlight tab prolly a deer hit because there was some deer hair stuck in the cracks. They probably salvaged it because used bumper covers were $1200 with sensors for this unique vehicle and adaptive headlights are $1200. My body guy repaired cover and I bought used headlight for $650 from EBay and grille for $65 and completed vehicle. The owner of the shop bought it from me because he said he wanted the SHO (after it was spoken for) and only issue he has had since is PCV valve which is maintenance item (known issues for ecoboosts).
I used to do a lot of hail damage cars. Many states salvage them because of the value formula but a few keep clean title it is just in the insurance company. I bought a bunch from CO and TX which kept titles clean with a partner who was a body combo professional and we were going to fix the damage ourselves and sell them. When we got our first 2 he started complaining about all the work he was going to have to do so I figured lets just sell it as is because it just had cosmetic dimples. We sold many that way. Some with moderate damage that was noticeable under direct sunlight and a few you couldn't see the damage at all. Figured many of ours came from Ford lots (paperwork in glove box) so adjuster must have totalled out more generously after a few well publicized hail storms. I sold many to parents buying them for their kids who they knew were going to dent it up anyway lol
For a short while I bought non running 6.4l's for a heavy diesel tech who would rebuild them and sell them. They were totaled because of the engine issues from insurance claims and some as clean title repo's because owners stopped paying on the loan.
Recovered steals if the claim was paid are salvaged title. So if vehicle wasn't recovered after the 2 weeks or so the insurance company deems its a total they pay the claim and when the vehicle is recovered whether there is damage or not they salvage the clean title and sell it at auction. My FIL is driving a prior salvage (rebuilt) Fusion hybrid that was loaded and recovered steal with only damage is scratch on front bumper. He also bought a hail damage almost new pristine travel trailer that we will convert title soon.
I got many many more examples but I would summarize that the problems many of you highlight rest not with insurance company nor the auction houses but the shops that did the work or the unscrupulous reseller who didn't disclose prior history and/or used bad shops. I never called prior owners or even prior dealerships. My shops did their own diagnosing and repaired accordingly. I used high quality independent shops but many times select dealership I had accounts and of all the vehicles sold haven't had any issues. Most buyers were just happy to get a substantial savings on a car and a few who were hesitant were calling me soon afterwards to look for another one for family member or friend. The ones I bought were select so I didn't always have a stream of vehicles. I looked for that needle in a haystack deal that I could pass on to the buyer. If anyone has questions you can message or email me.
My first project was a 07 F350 King Ranch with 67k one owner from TX. It was listed as recovered steal (salvage title) and as a non runner. The interior was removed but I believe most people didn't like the non running designation so bid less. I zoomed in pictures and saw that the ignition lock was stripped and figured the yard hands couldn't start it with key and won it at auction. I searched online for parts and cost was looking at 4k from different places so I decided to buy another accident wrecked F350 KR for about 5K and towed them both to Ford (before I had built shop relationships) and had them swap out interior and steering wheel column and parted out the rest of the wrecked F350 (sold drivetrain for 3K). I kept that truck a year waiting on the state snafus in converting the title and sold it to a roofing business as their estimator truck for 15K. A year later they called seeing if I had another one but that one was a rare find.
In regards to insurance formulas that applies to the majority but for some it can be more involve more variables than repair values/actual values. One can walk at any insurance auction lot and see cars with little or no damage with salvage or even worst parts only title (can't be driven/converted in most states) and see a crumpled up burnt frame with a clean title.
I bought a minor frontal hit 2010 Navigator non running that I gambled on it being non running because the inertia fuel pump switch wasn't reset. I even called the yard and asked them do they reset the switch and they said yes but I didn't go check it out myself at the time (not smart) just gambled because the grille only had been damaged. When I picked it up and got it home I recharged battery (most are low or dead from the sitting) and reset switch and it started. I got it repaired and converted title and sold it to law enforcement officer who loved it. Every buyer is told the history and the process and given copies of the receipts (they assume remaining warranty on repairs).
Legal definition of flood damage in many states is water touching bottom of car which means some flood damage cars are not damaged. I used to buy them cheap for parts donor cars for accident repair projects and some listed as non running drove right off my trailer with no issues. I think some insurance companies do not want them started so most are listed as non runnning but lately I see that Copart will sell them listed as runners. Albeit most of them on lots have water in cabin and many electronics problems. But someone willing to do due diligence could get a vehicle at substantial savings.
In IL you have to convert salvage title to rebuilt (some states you don't) to plate and insure them. The vehicle has to be repaired, DOT inspected then depending on year you will need a 2nd state inspection (for stolen parts) then a licensed rebuilder can apply to the state for a rebuilt title.I have insured more than a few with full comprehensive with Allstate so I haven't encountered issues in that regards either. In surrounding states a private owner can complete the title conversion process without the 1 (up to 3) month wait for title we have here. I used to sell good projects as I got them for DIY'ers to complete after I got a lot of requests for projects vs finished and the state was backlogged with title conversions. You can finance rebuilt titles with many credit unions and some banks but it is correct most places won't. My municipal credit union years back would finance salvage title vehicles I was told.
Just recently I got a 2010 Ford Taurus SHO with salvage title that had a dented fender and flat tire. I always wanted an ecoboost car so I took the chance that there was undercarriage damage since the front tire was flat. Once I got it to shop found out there was a nail in the tire and bought a replacement fender and had it painted and scratch removed from bumper cover and drove it for a quick while before selling it to a couple who converted the title themselves in border state. How can an insurance company salvage a title over $75 fender even if they included the $500 in new tires I got because it was AWD for a clean loaded vehicle? The buyer like many keeps contact with me because they love the savings they got on car (paid 5k) and so far no other issues.
I bought a 2nd ecoboost this time a MKS with grille cracked, broken headlight tab prolly a deer hit because there was some deer hair stuck in the cracks. They probably salvaged it because used bumper covers were $1200 with sensors for this unique vehicle and adaptive headlights are $1200. My body guy repaired cover and I bought used headlight for $650 from EBay and grille for $65 and completed vehicle. The owner of the shop bought it from me because he said he wanted the SHO (after it was spoken for) and only issue he has had since is PCV valve which is maintenance item (known issues for ecoboosts).
I used to do a lot of hail damage cars. Many states salvage them because of the value formula but a few keep clean title it is just in the insurance company. I bought a bunch from CO and TX which kept titles clean with a partner who was a body combo professional and we were going to fix the damage ourselves and sell them. When we got our first 2 he started complaining about all the work he was going to have to do so I figured lets just sell it as is because it just had cosmetic dimples. We sold many that way. Some with moderate damage that was noticeable under direct sunlight and a few you couldn't see the damage at all. Figured many of ours came from Ford lots (paperwork in glove box) so adjuster must have totalled out more generously after a few well publicized hail storms. I sold many to parents buying them for their kids who they knew were going to dent it up anyway lol
For a short while I bought non running 6.4l's for a heavy diesel tech who would rebuild them and sell them. They were totaled because of the engine issues from insurance claims and some as clean title repo's because owners stopped paying on the loan.
Recovered steals if the claim was paid are salvaged title. So if vehicle wasn't recovered after the 2 weeks or so the insurance company deems its a total they pay the claim and when the vehicle is recovered whether there is damage or not they salvage the clean title and sell it at auction. My FIL is driving a prior salvage (rebuilt) Fusion hybrid that was loaded and recovered steal with only damage is scratch on front bumper. He also bought a hail damage almost new pristine travel trailer that we will convert title soon.
I got many many more examples but I would summarize that the problems many of you highlight rest not with insurance company nor the auction houses but the shops that did the work or the unscrupulous reseller who didn't disclose prior history and/or used bad shops. I never called prior owners or even prior dealerships. My shops did their own diagnosing and repaired accordingly. I used high quality independent shops but many times select dealership I had accounts and of all the vehicles sold haven't had any issues. Most buyers were just happy to get a substantial savings on a car and a few who were hesitant were calling me soon afterwards to look for another one for family member or friend. The ones I bought were select so I didn't always have a stream of vehicles. I looked for that needle in a haystack deal that I could pass on to the buyer. If anyone has questions you can message or email me.
