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Let's talk salvage titles

Discussion in 'Ferrari Discussion (not model specific)' started by Buckets, May 3, 2020.

  1. Buckets

    Buckets Karting
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    Sep 9, 2019
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    Hi friends,

    I know of two experiences where insurers didn't want to evaluate the cost of repairs on a damaged Ferrari, so they just paid out ACV and said 'have a nice life'. I personally had this experience with my F355, where I ended up with a wad of cash and a salvage titled but very fixable Ferrari. [ My build thread is here if interested: https://www.ferrarichat.com/forum/threads/i-crashed-my-355.618058/ ]

    My general question is - is title status really important, especially in 10-20-30 years? I suppose you might only get 70-80% of clean retail, but still. My car is a rare combo so I felt compelled to rebuild, as would have been done by anyone buying my car at an insurance auction.

    I just personally think that with records and documentation of the claim as well as repair photos, resale shouldn't be that hard.

    Any experience/thoughts?
     
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  3. ChipG

    ChipG Formula 3

    May 26, 2011
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    I feel like the title status is extremely important and I personally would never buy a salvage title or previous salvage title car.
     
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  4. Ianjoub

    Ianjoub Formula Junior

    Dec 22, 2019
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    It is all about perceived value. It will be less with a branded title.
     
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  5. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

    Dec 4, 2004
    13,217
    Financing one can't be done (that I know of) and getting insurance for one will be difficult and expensive. You'll have a hard time finding buyers after you've rebuilt it and would probably make more money parting it out.
     
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  6. Julia

    Julia Formula 3
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    Feb 22, 2014
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    Things may have changed, but I never had any issue with insuring prior-salvage cars. That's been a while back, though. I sold my last prior-salvage car in 2015.

    OTOH, none of them were Ferraris or other exotics.
     
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  8. RWP137

    RWP137 Formula 3
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    It’s a re-sale issue with Ferrari’s. Check out the 599 in the for sale thread. He can’t give the car away and it wasn’t wrecked that bad...repaired correctly. They will sell, but at a substantial discount to a comparable clean title car.
     
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  9. Buckets

    Buckets Karting
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    I try to imagine the future.. does anyone care right now, as a buyer, that a 1960's Ferrari has been crashed in its past and repaired?
     
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  10. tritone

    tritone F1 Veteran
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    But they don't have that branded title either.......or it has been washed after 30/60 years........
     
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  11. Shark01

    Shark01 F1 Rookie

    Jun 25, 2005
    3,918
    I considered buying a salvaged Ford GT.....and no, I just didn't trust that a car with enough damage to be salvaged out could be fixed well enough that something dynamic wouldn't bother me during operation and most importantly that structurally I couldn't count on it if I needed to in a wreck.

    And comparing a mass-produced 355 to a hand built extremely low production Ferrari from the 60s will never be a valid comparison....

    You will find a buyer for a salvaged car, but I would budget that at 50% of a good #2 car........that is about where the salvaged Ford GTs sell
     
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  13. Meister

    Meister F1 Veteran
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    #10 Meister, May 3, 2020
    Last edited: May 3, 2020
    Completely wrong on both counts.

    Banks (less likely) and credit unions (very likely) will finance. They will only lend usually +/- 65-75% of the cars non wrecked "book value".

    I've got an 88 Mondial w/ prior salvage event in the 1990's and it cost less to insure than my regular titled 85 mondial cab, same insurance company. In the event of total loss they would adjust the payout to reflect the salvage history/value. Insurance is neither difficult nor expensive

    As for making/losing money. That can go either way. A couple summers ago I bought a salvage title Dodge Viper, I resold it 3 months later for $3500 more than I had in it including sales tax and registration.
     
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  14. Meister

    Meister F1 Veteran
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    There is no question that branded title cars have a limited resale pool. The higher up the food chain you go, the smaller that pool gets simply because that pool starts to shrink naturally anyway. If a person has $100k to buy a toy, they most likely can go to $130-$140k for a similar car with no history issues or stories.

    Staying in the shallow end when it comes to branded title cars greatly reduces the risk, and obviously dealing with older cars that are much closer to or if not at the bottom of their depreciation curve helps too (thanks captain obvious ;)
     
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  15. Buckets

    Buckets Karting
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    This is a great conversation. Thanks.
     
  16. Buckets

    Buckets Karting
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    I can vouch that credit unions will finance 25 year old cars, but I've never attempted with a branded title.
     
  17. Meister

    Meister F1 Veteran
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    check with your states DMV too. The rules differ from state to state. Some only register cars from within the original state or they have to be cleared from salvage only status to rebuilt or prior salvage by the state they came from before your state lets them in. There can be hoops in registration you need to know if you can jump through or not.
     
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  18. fatbillybob

    fatbillybob F1 World Champ
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    Aug 10, 2002
    19,993
    socal
    You all know you buy a 70k Mercedes daily driver and in 10 years you trade it for 3500 bucks. So if you buy a salvage 430 for 70k in 10 years what do you think you will get? My guess more than 3500 bucks.

    then why was it salvaged? ACV on cars is low. A 95k 430 might be 60k ACV. Then if the issue is 50% ACV they total it and you got a salvage title. Did you know a couple cats on a 550 is over 20k? I got a no structural damage estimate on some bodywork for my 550 at $35k! It was paint had to remove window so seals and very minor body dents. Ferrari’s total easily.
     
  19. 308 milano

    308 milano F1 Rookie
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    Richard Rawlins damaged F40 rebuild. (can’t remember his show at the moment) Watch these two episodes, then do 100% opposite, you’ll be fine!
     
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  20. Buckets

    Buckets Karting
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    Ferrari cost of restoration is going to blow a hole in most plans to buy wrecked cars to fix and sell as usable cars. I don't think you could economically buy a salvage car and pay someone to fix it, before you've gone beyond the reasonable resale value. There's probably way more money in parting them out, but that isn't easy money either.
     

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