Salvaged Titled Ferraris

I came across the following listings this weekend:

http://www.copart.com/c2/homeSearch.html?_eventId=getLot&execution=e42s1&lotId=15156472&returnPage=SEARCH_RESULTS

http://www.copart.com/c2/homeSearch.html?_eventId=getLot&execution=e42s1&lotId=17329872&returnPage=SEARCH_RESULTS


I was curious as to why anybody would purchase a vehicle that has flood or extensive front end damage.

What is the point of purchasing one of these vehicles? The cost repairs necessary to make vehicles operational exceeded a certain percentage of the vehicle's fair market value so the insurance carriers opted not to repair them.

I have heard that these vehicles are "repaired" & exported to Asia,South America,& UAE/GCC regions.

 

1. Export.

2. Part out.

3. Track car.

 

Depending on the type and extent of the damage, +1 on #3.

If I were buying a car to toss around the track, severe front end damage would concern me, but a destroyed interior would not. Toss the moldy carpet and leather, replace with some new Sparco seats and a 5 point harness... Good to go.

 

I am going to make a track car. It will be a tribute to the 1978 512 LeMans car of Pozzi/Thomson. A really pretty car.

I want something that is snorty and roarty and quirky. I think I'll make one.

Actually, I'll take the major parts of a car that has been written off by all but the most crazed enthusiasts.



Well, in reality, I think I want parts from ten cars. Yes ten cars. I've parts from four already so that should be easy to accomplish.

Yes it will be a bitsa, but it will be my bitsa. And it will be a Ferrari.

It will be something I'll be proud of.


Man do I wish I could find a deal on a flooded Boxer. I'll be submerged on this project in a heartbeat.

I can't wait!

 

fun post!

 

Not necessarily the case. I'm knee deep in the car insurance business for the last several years.

Yes most states have a percentage that in the damage meets the car must be totalled but some states do not like Georgia has none. Most states are around the 70-75% range.

However most insurance policies have a condition in them that says the insurer has the right to total the vehicle for any reason, usually a constructive total loss in special circumstances.

Now about insurance companies and exotics. We all know after a certain age the a parted out exotic is worth more than a whole one. As an example we are going to use let's say a 360.

Now say this 360 is worth retail 100k$. Say this 360 is wrecked and has 50,000 worth of damage to it which we all know how much parts cost new so a 50k$ worth of damage may not be much on one of these cars and this isnt any where near the 70-75% total loss threshold. Ok let's say the rear of the car is perfect shape and this is where the money is due to the mechanicals. Now let's say the salvage value of this wrecked 360 is 50,001$. So now the insurance will look at it like this, they either pay out 50k on it to get it repaired or they total it pay the owner an even 100k$ then sell it for salvage or 50,001$ now the total pay out is 49,999$ so they saved a buck and made the insured whole. This happens a lot with exotics.

Now onto flood vehicles. Every insurance company I know has a list of what the water intrudes into and if it's repairable or not. Most of the ones I have seen will state if the water intrudes into any safety equipment it is deemed a total loss. This includes wiring harnesses and connectors for the air bag system. I have personally totalled many repairable cars where the water got just deep enough to touch the connectors on the bottom of the seat for the air bag system. The reason for totalling these is because of liability reasons the connector may look good but if for some reason after the cars repaired and involved in an accident and the air bags do not work correctly and someone dies the insurance company could be liable so it's cheaper to total the car in the long run.

When it comes to salvage vehicles I would want to know the full story and it would depend on what I was going to do with it, either take it to the grave or track car you can't think resale.

 

Another reason someone might buy a damaged salvage title car is because they (think) they have the ability to do a DIY fix. It might have $50k worth of damage when fixed at $100 an hour with new parts, but when the labor is free and used parts can come from eBay or from another salvage car, it might be quite a deal.

This, unfortunately, is the big problem with salvage title cars. Sometimes the DIY guy is right and fixes the car like-new. Sometimes they completely lack skill and make the car dangerous to operate. It is tough for the great unwashed to tell the difference.