Salvage Title- Effect on Value?

cary1 · 12-23-2003, 12:33 PM

Hi,

I am looking at an 85 Carrera Coupe, 94k, clean condition. The catch is the car has a salvage title, allegedly due to theft in 1998 and the cost of replacing the seats and wheels. The seller is asking $13,995. How much do you guys think the Salvage decreases the value of the car?

Thanks

moazam · moazam's Garage

For a salvage title car, that sounds high.

I'd drop $2k-$3k off the asking price, but thats just me.

Also, get a PPI and make sure the car has maint. records. If not, the price drops....

ubiquity0 · 12-23-2003, 12:43 PM

KBB I believe gives a 30%-%50 reduction for a salvage title. I think that car should be more like $10 000 & bear in mind that if you get it & come to selling time 90% of people in the market wouldn'y consider it due to the salvage title.

rickeolis · 12:48 PM

Having been in the car business for a while, here's your answer:

The valuation of ANY car is only an estimate, you can only expect to sell a car for what a given buyer will be willing to pay. You may get someone who knows what they're looking for and disregards the title status.

The real problem you will run into is the financing from lenders for the purchaser. They will have strict guidelines on how much they will put up into any given car. Most go buy Kelly Blue book or similar, and then only lend up to 85% of that, but they will certainly have issues with the salvage title though.

Good luck- and get that PPI !!!!!

Emission · Emission's Garage

That is steep for a salvage. I'd take off 30-40% from the average sales price of the equivalent vehicle.

The person that cares most about a salvage title is the next buyer. Put yourself in their shoes. It is pretty easy to find an '85 Coupe out there... so why buy salvage?

makaio · 12-23-2003, 12:52 PM

Good advice from all so far. IMO I would only purchase a car with a salvage title if it was a smoking deal ( the price you gave is not, for a salvaged title ) or a dedicated track car.

Additionally I find it hard to believe that a car was written-off becasue of the seats and wheels being stolen. That car had to be worth at least $25,000 in 98, and there's no way the seats and wheels totalled up to even half that.

ubiquity0 · 12-23-2003, 12:56 PM

For some reason it always seems to be- "It has a salvage title, but only because it was stolen & then recovered with the seats missing". How many thieves could there be out there that make a living out of stealing Porsches, taking the seats & then ditching the rest of a perfectly good car?!?! Come on!

cary1 · 12-23-2003, 01:01 PM

I was figuring the fair price would be be somewhere under $10,000, which everyone is confirming. Assuming everything else checked out, I think it would be a reasonable deal. BTW, I would not purchase the car without a PPI by specialist and would run the carfax to double check and see if I can find the reason for the salvage.

I would not spend $13,000 for the car, especially when there is an 87 for sale near here that has 108k with a new clutch, oil cooler lines and the owner is asking $16,000.

Thanks

Cary

masraum · 12-23-2003, 01:02 PM

bad

Schuey · 12-23-2003, 01:30 PM

Quote:

Originally posted by ubiquity0
KBB I believe gives a 30%-%50 reduction for a salvage title. I think that car should be more like $10 000 & bear in mind that if you get it & come to selling time 90% of people in the market wouldn'y consider it due to the salvage title.

DITTO...IMO run away...

rattlsnak · rattlsnak's Garage

Do a search, this has been covered SEVERAL times.

Kevin G. · 12-23-2003, 02:00 PM

I had a friend once whose car (Prelude Si) was stolen, and only the seats, wheels and stereo head unit were taken when the car was found a few days later. Insurance co. totaled the car because the wiring was f'd up on the removal and 'they didn't want to take a chance with a later car fire'.

Of course this was for a $9K Honda, not a $28K Porsche, but the reason (liability) may still hold true. It may also make it difficult to obtain decent insurance on a salvage title vehicle. If you decide to go ahead with this vehicle, make sure you can insure it first.

As always, YMMV.

Por_sha911 · Por_sha911's Garage

I sold cars for 10 years (Including Porsche)
1) They do not salvage a car for wheels and seats.
2) Most folks won't touch a salvage title. Do a PPI. buy it only if the price is too good to pass up (AFTER the PPI), plan on driving it until the wheels come off and don't count on resale (even if you put the car in concours condition).

Dantilla · 12-23-2003, 03:05 PM

Sometimes when a car is stolen, it is not recovered untill after the insurance company has paid. Then it is owned by the insurance company, and it usually ends up at an insurance auction.

I bought a 944 for $1250 at an insurance auction last week.

BKOMAR · BKOMAR's Garage

Owning a 911 with a salvage title... it always makes me laugh to see these postings. My car had a tree fall on the roof, broke out the rear glass and buckled the roof. It has be absolutely properly repaired and there have been no problems with the car since. The thing you have to think about is.... a car with severe rust, that has been repaired DOESNT HAVE A SALVAGE TITLE!! Give me a break. I would much rather buy my car with photo documentation of the repair and damage and a salvage title, than a rusty car that has been "repaired" and covered with undercoating and a regular title. Just my 2 cents... and 50% less...? come on... I HAVE seen several cars that were "totaled" due to being stolen and having just the seats and wheels and some electronic components removed. Usually, the cost of replacing the items, towing, storage, is too much for the insurance company to deal with. Brian

john_colasante · 12-23-2003, 03:55 PM

BKOMAR brings up a great point. We always stress PPI's, complete service records, mileage, title status, etc when talking about good used cars.

But by far the MOST important thing is CONDITION! I'll take a car in great condition over anything else. Let's not loose sight of what we're after here...just a great used car.

RoninLB · 12-23-2003, 03:58 PM

Quote:

Originally posted by makaio
Good advice from all so far. IMO I would only purchase a car with a salvage title if it was a smoking deal

ditto

Zeke · 12-23-2003, 04:45 PM

I now have a salvage title on the PU I drive because some little chicky ran into it while it was parked. The damage wasn't bad, so I bought some panels and fixed it. I can no longer get any collision or comp on the truck. Therefore, I wouldn't drive any salvage titled vehilcle that I couldn't afford to walk away from losing every penny invested. 'Cause that's what will happen it I wreck it. Can you say track car?

speeder · speeder's Garage

The formula is pretty simple; total up its value in immediately sellable parts and there you have it. Not including the glovebox lock that you might sell 2 years from now, (you're not a junk yard, right?), but the motor/trans, suspension, wheels, etc....

As long as you know the real market price for those things, you will not go wrong. And $13k is a normal price for a decent, (non-salvage) '85 911 w/ miles.

john_colasante · 12-23-2003, 05:26 PM

Denis,
That's the way I think too. LOL...