Salvaged Vehicles

[KLXD]

I'm seeing a lot of late model TDI's with salvage titles.

I don't get it. Why are insurance companies totaling new vehicles with relatively minor damage?

 

[LRTDI]

Surprised VW doesn't buy them from the insurance companies and breaks them for parts

 

[bmali98]

It's cheaper to buy out than repair. Body shops will replace everything for their own benefit and labour to replace everything adds up quick. Given most insurances will only payout wholesale cost, it's cheaper to buy out. A car that sells on a lot for $10000 may only wholesale for 5-6k. Then the insurance company gets some back when they sell it at auction. Assuming they only get 1k at auction, In the end the insurance only loses 4-5k on a $10000 car that costs 6k to fix.

 

[jetlagmech]

I have owned cars with salvaged titles, and helped my son buy his car back from insurance after minor wreck and fix it. just have to be careful of shoddy work by flippers, and cars that were totaled because of flood. Salvaged title can be a way to afford a nicer car if you know what to look out for.

 

[mrrhtuner]

Surprised VW doesn't buy them from the insurance companies and breaks them for parts

Because they want to mess around with peanuts for some chump change (compared to the larger outlook of auto manufacturing)

 

[bubbagumpshrimp]

You're ASSUMING there was relatively minor damage. i.e. Flood damage cars. That car could have only been under water for a few seconds (i.e. My '02 Jetta GLX VR6) and look PERFECT, but it's in reality a complete disaster. i.e. Electrical gremlins. I had that car into the shop 15 times before I finally threw in the towel.

These cars get totaled out by insurance because they are literally not worth the headache of trying to repair. i.e. The car I mentioned above. It looked perfect, but they literally spent more money in the 15 times I took it to the shop than the car was worth (and it was only six months old).

Edit: I'm willing to bet that there were a BUNCH of cars that received branded titles up in NJ a few years back that look just fine on the surface, but are a disaster under the surface. Pull Carfax reports and see where these cars were titled.

 

[jetlagmech]

Yes, that is what I meant. I would never buy a flood damage car. too likely having constant expensive issues. trouble is a car can be flood damaged and not totaled because it was not coll/comp insurance covered so the owner just cleans and sells it.

 

[oilhammer]

It is all about the numbers, and what the particular insurance company's policy is.

Collision repair costs can add up quick, when a relatively minor bump can cost a couple grand in airbags alone. Pretty much everything now has a color-matched bumper cover, crunchy plastic bits all packed tightly together, etc.

We do a LOT of mechanical work for a local body shop, we see all kinds of stuff.