How toxic is a rebuild title?

I've been looking at getting a 550 Maranello for quite a while. Now I'm seeing prices going up dramatically. However, I found a really clean car with 19,000 miles for sale but with a "rebuildable" title. Supposedly there was water damage to the car.

I asked the owner to take the car to Luciano's in Sarasota. Dino looked at the car and found no sign of water damage and thinks the car is in great shape.

Price is around $110,000. What are your thoughts about buying this car?

 

18 months ago this is a $60k car (to be charitable).....now you're looking to buy at the peak of the market. Great economic decision? Probably not...

Want to keep it for a decade? Give the man his money and drive the snot out of it.

To answer how toxic is the title, you know this car will always inhabit the bottom of the 550 market, over time the high tide lifts all boats

 

There's been one on Ebay with a rebuilt title (and claiming to have top-notch work done) that didn't sell repeatedly for about 90k. I'd say 110 is a tad steep, especially if nothing's been done to it. As stated above, if you want it for yourself, it's a decent deal. If you intend to resell, I don't think having rebuilt titles will allow cars to attain full market potential until they are considered 'classic'--i.e. over 30 years old.

 

If you plan on keeping it for a long, long time and can get it for a reduced price then yes.

The spectre of water damage will always be there when you trade/sell.

 

Thanks, guys. The next question is, can I get a low miles 550 for $100k or less?

 

Check to see if your insurance company will insure it.

That being said, "How toxic is a rebuilt title?" Answer: Toxic

If you have a ten-foot pole, get it out and then don't touch it

 

I'd be real careful, in a hot market the car will sell, and you won't care, but in a downturn, the car that will drop in value first will be the iffy title one, such as this, because there will be choice in the market and the prices will be tighter together.

If you plan to keep it forever, who cares about the title so long as the car is straight and drives well

 

I think it would also depend on what happened to the car? Was it stolen and recovered missing parts? totaled due to accident or flood? Or did some old lady back into it in a parking lot? It all depends on parts availability etc when you are dealing with insurance. If you are going to use the car and enjoy it for many years to come who cares as long as it's a good car and you know the cars back round and get it checked out with a PPI. There are some old Daytona's that have been rebuilt that are commanding lots of money..

 

Likely not. I've been searching for half a year. Best prices are in Europe and Japan, but still cresting $100k (and higher kms too, they tend to drive their cars)

 

No, the current market is well above that, due to "Six Speed mania" see the German car in our ads....high mileage, top maintenance...it's still there.

The repainted car in Saudi would be a good candidate, as a driver.

No floods, in Saudi...LOL!

 

A hydro locked engine will total a V12 before you can say:
"momma went to the store in the rain".....

 

Don't know if you are financing, but probably not an option with a salvage vehicle.

If you are paying cash, offer 60% of market value for a clean title vehicle.

At $110k that car will turn to dust before someone buys it. It is more like $70-75k.

 

The damage needs to be quantified. If the vehicle soaked in knee deep water, then wiring harnesses, frame components, etc. all have the potential to have absorbed water internally. Future corrosion problems are a certainty. You need to know firsthand exactly what happened. A wreck is more quantifiable in terms of risk than a flood. In any event, there will be some artifacts of the damage source that will never be remedied in any of these cases. Can you live with them in your use case?

As Shark mentioned above, this was a $60K car at best 18 months ago. Some will remember a long thread about a black 550 in New Mexico that struggled to get $50K (a former wreck).

BigTex mentions the Kuwaiti car as an option. There may be a story there as well, but the price is right - and apparently not a wreck. (BTW -they do have flash floods in the middle east!)
http://www.ferrarichat.com/forum/ferraris/510201-1998-euro-spec-550-red-tan-manual-now-priced-%2455k.html


An option: Why not cast your net wider for a similar vehicle experience that is within your budget? A no stories Aston Martin DB7GT can probably be had for $60K and is a manual shift V12. It is a very satisfying drive and will be a bit old school like the 550. And the GT version is rare and somewhat undiscovered. This market is just starting to move...

 

A 599 is still a "used car" so a tainted title is quite toxic indeed regardless of the car's condition. Sad but true.
case in point;http://www.ferrarichat.com/forum/ferraris/461326-92-348ts-sale-w-salvage-title.html

 

An old 550 of mine got fixed under my watch, then when job price made it to 165k I made them total it. Car went on to win Platinums at the Breakers. However, it was made to sound like a scratch.
Car was solid, hence effort to fix. But I've spent less effort dogging a full restoration.
All, and I mean ALL, depends on the hit and the repair.
I wouldn't have flood car if you gave it to me. I had couple winter beaters that were incredibly nice as a kid with salvage titles.
I wouldn't spend money that isn't burn it or spend it on a salvage car. Sure wouldn't borrow on one.

 

Remember that a rebuildable title is not a rebuilt title. The car still has to be presented to the DMV and deemed safely repaired to be issued a rebuilt title.
By the way I have a 1999 silver on black 550 with 25k miles that I may sell for $130k for a quick sale. No stories 2 owner Florida car that I have owned for 12 years.

 

IMO, Salvage / Rebuildable titles are not for the investment crowd, unless it is historic.

On the other hand, these type of cars present other opportunities, such as converting for track-only use or installing some of the interesting aftermarket kits sold by various firms. You can do this with little or no guilt and make it your own.

 

I don't think the banks will loan on one....

 

Im not sure that many ppl are that successful with offers that low. I suppose it depends on the sellers personal circumstances. but ive seen lots of sellers standing pat at about 20% less than real market value (i.e. average private sale cars, not hagertys values, or collector pricing).

I agree with others...id have no problem with buying one if I knew id likely be its last owner...or wanted to race it hard, or use it for a rental etc. But I think itd be a piss off to own one and hold it for 20+yrs, decide to sell it, and see that it hadn't appreciated to what all the others were worth that didn't have the brand on the title. That said, theres no guarantees of appreciation when it comes to specific models of cars anyways.

 

Very toxic if you plan to sell it in the next 15 years.

Not so toxic if you plan to drive it tens of thousands of miles and enjoy it. Depending on the nature of the damage, it could be a smokin' deal. If it was flood damage, find evidence of the wiring harness, ECU and all electrical modules being replaced. Don't compromise on this issue. If it was suspension damage, detailed records of the damage and qualifications of the repair shop are important.

In the long run, the cheapest ($) Ferrari is the most expensive Ferrari.

 

Not a water damage car it is asking for trouble . A crash damage car is much safer salvage title. Water damage continues to destroy for a long time ..

 

It does flood there actually.

 

There are water damaged cars and then there are water damaged cars.
Cars in high water up to the door sills for a few moments or those submerged in a flood.
Every salvage dealer claims the first.
I'd almost rather have a crashed car because then you can get pics or repair bills.
In a 550 with complex electronics you are playing Russian roulette with half the chambers loaded.
"Do you feel lucky punk, well... do you ?"

[ame]http://www.youtube.com/watch?v=YH3CVUpw20k[/ame]

 

Some cars are not really damaged and have salvage titles. I know someone that had a new Toyota tundra truck. He was rear ended with only a scratch. His kid was drinking a milk and spilled it in the back. They couldn't get the sour milk smell out of the truck. Our insurance company wrote the truck off. Once it goes through a salvage auction it gets a branded title. Most states are the same.

Id only buy directly from the insurance auction. The biggest in the U.S., most are open to the public. This way Id know exactly what the cause for the write off was and have control on how its fixed.

Having said that keep in mind the person who buys a salvage titled vehicle is looking for a steal of a deal. Very tough to resell.

I believe the 550 is the same in all markets. You can import them from most places and meet EPA and DOT.

In Japan its still an under $60k car!

http://auction.pacificcoastjdm.com/stats/?p=project/lot&id=210180768&s

 

Great idea when market is low so you can sell when market is hot. Right now in General is the time to sell and specifically avoid a salvage title. But you can think of this too. If it was a NART would it matter? At some point the salvage title is pointless. Where is that point? Not on the 550 yet.