Discount Expected for Rebuilt Salvage Title Car | FerrariChat

Discount Expected for Rebuilt Salvage Title Car

Discussion in 'Ferrari Discussion (not model specific)' started by Shark01, Jul 9, 2019.

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  1. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    Had a car pitched to me, with a catch. The car was in a front end collision several years ago (which also damaged the driver side door (from stress?), was declared a salvage, and rebuilt. Currently carries a standard title from the state I reside in (but lists it as re-built), and is insured by the company that I insure with and they said they would continue to insure the car.

    The car is a mid-engine car from the late 2000s, supply is usually pretty thin and demand is solid and will IMO continue to be.

    What do you think should be the discount from a similar car with a clean title?

    Thanks
     
  2. vrsurgeon

    vrsurgeon F1 World Champ
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    Dec 13, 2009
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    Need to post numbers. NSX? 360? MR2?
     
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  3. 19633500GT

    19633500GT F1 World Champ
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    Is this by chance a 458 Italia in Maryland?
     
  4. usshelena725

    usshelena725 Karting

    Nov 22, 2014
    83
    Johnson City, TN
    Why so vague?

    This is like me asking a physician what is wrong with me and I just tell him that I have some ailments in an undisclosed location for a certain period of time and they may or may not cause pain.

    Seriously though - details on the car in question would be needed to make an accurate assessment. For everyday commuter cars, the general rule is retail value is usually between 50% and 70% of normal value if the car had a clean title. For rare or exotic cars, more factors come into play.

    An additional item to note, however, is that regardless of price - your market for resale dwindles by about 80% on a branded title vehicle. Irrespective of the cost, there are many folks who will simply never buy a salvaged car, no matter what the deal - so selling it becomes somewhat difficult and will take substantially longer versus a normal vehicle that doesn't have title issues. Just some food for thought.
     
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  5. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    I was asked to make discreet inquiries since the car is not on the market. The pricing area is right around $200k.

    Just trying to get an idea on the discount that should be given for an exotic in this situation
     
  6. 19633500GT

    19633500GT F1 World Champ
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    Discreet inquiries get discreet values :cool:
     
  7. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
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    Ask yourself why was the car "pitched to me" and you are not to discuss the particulars with anyone.

    Caveat emptor.
     
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  8. vrsurgeon

    vrsurgeon F1 World Champ
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    Given the specifics of the situation.. Anywhere between 1% and 50% would be my guess. If a common model and frame damage 50%, a scratch on an Enzo.. 1%.
     
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  9. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    LOL.......guess there won't be any real help to be had here.
     
  10. Enzojr

    Enzojr F1 World Champ

    Dec 12, 2013
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    West of PDX
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    Tomy
    25% discount, selling a vehicle with a salvage/damage title is a pain in the butt ;)
     
  11. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    Thanks, the owner wants to get 11% back of what I think are comparable cars and that just sounds too thin
     
  12. PFSEX

    PFSEX Formula Junior

    Jun 30, 2006
    843
    Las Vegas
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    John Ratto
    I'd say 30%. Remember that it had to suffer pretty serious damage to be considered salvage. I'd say a $200K car had to be really heavilly damaged for the insurance company to write it off.
     
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  13. henryr

    henryr Two Time F1 World Champ
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    Nov 10, 2003
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    the newer the car the more PITA

    what documentation does it have ? pics ?

    huge stigma but there are a zillion reasons why cars are totaled
     
  14. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    Yes have pictures, damage doesn't really look all that bad, but insurance companies do what they do
     
  15. henryr

    henryr Two Time F1 World Champ
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    i've seen cars totalled for lack of parts.. just depends

    $200k ? problem is folks in that range have money to buy no stories so you'll be dealing with vultures when it comes time to sell
     
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  16. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    If it's the right car for me, it would be the pool boy errr... Wife's boyfriend 's problem after I get hit by the autonomous bus because the robot driver was taking a call from his robot buddies

    Otherwise, yes the issue of selling it is a concern.
     
  17. paulchua

    paulchua Cat Herder
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    Jul 1, 2013
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    The range is definitely very wide. Remember this one? I respect that you have to keep certain details vague, as others have pointed out, it makes appraisal very difficult. Much depends on the specific model. Assuming it's a 360/430, I personally would shave off 1/2 right off the bat with a salvage title. Not sure if the $200K you quote is the non-salvage price of a comparable model? So perhaps a scud/challenge? I've seen some salvage models that were good buys and vice versa, it's hard to know the long term and/or hidden issues that may lurk.
     
  18. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
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    Oh, I was assuming the car had been repaired. If it's still damaged that's another story. Find out what he paid buying it back from the insurance company.
     
  19. henryr

    henryr Two Time F1 World Champ
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    have a buddy that owns a chain of collision shops....

    couple years ago he was buying "slightly" wrecked cars to fix and keep the employees busy during slow periods. he stopped doing as it was a PITA to sell cars with salvage titles
     
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  20. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    Yes, the car in question was repaired some years ago by a previous owner. The current owner bought it already repaired 3 years ago.
     
  21. Enzojr

    Enzojr F1 World Champ

    Dec 12, 2013
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    ......and then you get the, oh crap the frame is bent ;)
    Then you just bought a piece of junk only good as a parts car ........
    Unless you want to be like the person who sold it to you.
     
  22. usshelena725

    usshelena725 Karting

    Nov 22, 2014
    83
    Johnson City, TN
    This is probably the most poignant point so far in this thread. Trying to resell a salvage corolla is bad enough, but can usually be done if the price is right since there is always someone looking for a decent $5,000 car.

    Trying to resell a $200K vehicle with a salvage title? Extremely difficult. Someone who has $200K to burn on a depreciating asset that is essentially a toy, certainly has enough money to buy one that doesn't have a salvage title or a bunch of negative history. So, if deciding to purchase, you would realistically have to assume the value after purchase is $0.00. If you don't ever plan to sell it, or can easily walk away from the initial purchase price without it being too big a hit to your wallet, then fine. Otherwise, I would just walk away.

    EDIT - just saw your comment about 11% reduction in sale price. Unless this is some ridiculously rare car that simply doesn't exist anywhere in the USA right now (doubtful), then that pricing is absurd. That would be a big no-go for me in addition to all the other things I've already mentioned.

    This seems like a bad deal all around.
     
  23. C50

    C50 Formula 3

    Aug 19, 2016
    1,729
    808
    In my opinion, 11% discount for a salvage/rebuilt $200k toy is a very bad deal

    You could potentially find similar savings on a story-free higher mileage example

    If there are some unique attributes to the car in question (eg color combo you like)... I’d still walk, unless for you it is to be a permanent part of your garage.

    You’ll forget the nominal “savings” immediately after purchase but the story is forever associated w the car.
     
  24. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
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    Yea, the more I read about this the less uncomfortable I would feel. The last time I was "pitched" I was at a carnival. :)
     
  25. Shamile

    Shamile F1 Veteran

    Dec 31, 2002
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    Lakeland FL
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    I dunno about this. Even if you bought a Murcielago SV in stick shift with a salvage title, it would be very tough to get out of.

    A salvage SV would go for around 200k but I wouldn't consider it an investment...more like a low entry point.

    Shamile

    Freeze....Miami Vice!

    Sent from my SM-G950U using Tapatalk
     

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