Effect of Salvage Title

brain · 01-10-2008, 01:46 AM

My insurance company wants to label my 1987 MR2, which I've kept in pristine condition, a "total loss" and slap a salvage title on it after a recent accident caused body damage. It still runs perfectly and I'm determined to restore the car because I think it will be a classic. My question is: If I accept their offer, keep the car and fix it myself, what effect will the salvage title have on the future value of the car as a collectible?
-brain

PHOENIX · 01-10-2008, 02:33 AM

Some states have options after issued a salvage title. If you are able to restore it to good condition, they will issue you a "restoration" title which is better than salvaged. A salvage title basically states the car has been in an accident where the price to fix the car was more than the car is worth.

Unfortunately, this does effect resale value

PearlJammzz · 01-10-2008, 08:36 AM

It effects it a LOT. I would raise hell and call ******** on the whole deal. If they give you a check, don't cash it. That's like settling, even if they offer future payments, or whatever.

My friend's Celica was hit and they were only going to give him like 3500-4k cause that's all it booked for. His old man got on the phone and flipped balls at them and got ~7k total, car was totaled out though. He got the 7k by proving how rare and such it was (like a 96 celica GT, not THAT rare but also not no civic).

So I say fight it, if they are going to make it a salvage title then make sure you get enough money to compensate for the loss in retail value (usually quite a bit, depending on the car) and the hassle of getting it to where you can register it and such. IIRC a few states you can't register a salvage titled car.

mr220v · 01-10-2008, 09:12 AM

If you think the offer is otherwise fair, see if they will give you the same amount of money, but without the salvage title.

This has worked for me on two occassions.

Salvage titles are a pain in the ass more than anything. In Georgia, to get retitled, you have to get the car inspected by the state before repairs are made, and then after the body damage is fixed, but before it is painted.

If your car is collectable quality, a salvage title will hurt that for sure.

kanga · 01-10-2008, 11:26 AM

my first car was a 03 salvage civic with a restored title i got it for 3500 with only 2,000 miles on it and those cars normally go for about 14k ish but then again its a civic

EL PAALO · 01-10-2008, 11:33 AM

If you care about being able to sell it for more than $1 later, don't take the salvage title.

brain · 01-10-2008, 04:28 PM

Thank you for this information. I t is very helpful. After much research and argument, I got the insurance company to agree that my 1987 MR2 (with T-Roof), 20 years old, but with only 111,000 miles on it, is worth $4,700 (as opposed to their original value of a measly $1,500). I know I can get the repairs done for $4,000, but they still won't agree to repair it, calling it a "total loss." What I have to decide is whether to: a) Take their offer, accept a salvage title, and get the repairs done myself, restoring it to its former glory, b) Take their offer and try to get a comparable car for $4,700 (if that's even possible), or c) fight like hell to get them to agree to repair it and not put a salvage title on it, but then I have to fiind a way to repair it for around $3,200. My question, then is: at these prices, is this car worth restoring, since it is somewhat rare and still runs perfectly? Again, thanks for your input.
-Brain

o6spdracer · 01-10-2008, 04:34 PM

I would do everything humanly possible not to get a salvage title on the car. Keep fighting. It will be worth it.

TomsMR2 · 01-10-2008, 05:08 PM

4700 bucks would get you a nice 88sc. id take their offer, junk the car, and pickup an 88.

PearlJammzz · 01-10-2008, 05:15 PM

Agreed. Depending on how bad it is, the 4700 is a good chunk of change, and should be able to buy you a comparable 2. Your old 2 can be stripped and sold for parts, or whatever you choose.

mr220v · 01-10-2008, 05:52 PM

Take the $4700. Buy it back as salvage if the cost is reasonable. Transfer all of your parts to a shell, and get it repainted. You could also use the opportunity to do some maintenance (clutch, tbelt, etc...)

So:

$700 at most for the salvage
$200-$400 for the shell
$500 for a paint job (they might even be able to blend with the panels from your old car)

It will be a fair bit of effort, but you could effectively get your car back for under 2k and pocket the difference. Of course mileage will be based on the shell and not your car.

What parts of the car are damaged?

PHOENIX · 01-10-2008, 05:54 PM

Yeah, i would strip if of the clean/nice parts and buy an 88sc

EL PAALO · 01-11-2008, 07:58 AM

even though it was in pristine condition, it's now been wrecked and those repairs will show in some way. even if it's an excellent job, you'll still notice small things.

I agree on taking 4??? plus your car salvaged. that seems like a surprisingly fair value by an insurance company.

phzoinkMKII · 01-11-2008, 10:04 AM

Wow 4700 is not bad. I have to agree with everyone else in taking their offer and buying a shell or another car. If it's going to cost around 3200 to fix it's not worth it.

brain · 01-11-2008, 12:52 PM

The left rear bumper and fender, the left quarter panel, and the left front bumper and fender were damaged. There also appears to be some suspension damage, because the left front tire is a little further back than the right one.

phzoinkMKII · 01-11-2008, 01:04 PM

Quote:

Originally Posted by brain

The left rear bumper and fender, the left quarter panel, and the left front bumper and fender were damaged. There also appears to be some suspension damage, because the left front tire is a little further back than the right one.

I can understand if you are attached to the car, but that damage seems to be a bit much. Take the 4700 and let them salvage it you will be much better off.

Mista 2 · 01-21-2008, 01:51 AM

try and cut a deal to get about $4,500 and you get to keep the car even if it is written off as damaged. you could keep the good parts and im sure other people on the forum could buy some of the parts that you dont want off you. we can do this in australia but i dont really know about this sort of then in the US. good luck with it!!!

Mista 2
Jordan

mr2ace · 01-21-2008, 09:37 AM

This is what I would do...
try to get about $4500 out of it from the insurance co.
buy back the car from the insurance co. for a reasonable price (if they let you)
remove the "keeper" parts from the car
part it out and make a bunch more money
get a nice 88SC or 91t

just my $0.02

canadam · 01-21-2008, 10:39 AM

Perhaps I'm too honest, but when selling the car in the future the law requires full disclosure of previous damage. Anyone buying the car should be made aware of the fact that the car was a total loss at one point, regardless of the title. To me as a buyer, there would be an equal detriment to the vehicles worth.

55mr2 · 01-21-2008, 11:17 AM

A salvage title, in and of itself, is not the kiss of death, maybe just a cold hug.

My car has a salvage title but I also have pictures of the previous damage. I know what kind of damage it had, I know it was repaired professionally and to a high standard, and so I was comfortable going ahead and buying it. I probably paid less for it but it would be hard to say for sure because there are not any like mine around to compare. I do know that I was made aware of the fact that the car had been written off and I could therefore make an informed decision.

Having said that, I also think that your preferred option is to get the cash, buy it back for cheap, keep what you need, part out the rest, and get yourself another clean 2.

01-10-2008, 01:46 AM	#1 (permalink)
brain No Skills Join Date: Jan 2008 Posts: 4 Thanks: 12 Thanked 0 Times in 0 Posts iTrader Rating: (0/0% )	Effect of Salvage Title My insurance company wants to label my 1987 MR2, which I've kept in pristine condition, a "total loss" and slap a salvage title on it after a recent accident caused body damage. It still runs perfectly and I'm determined to restore the car because I think it will be a classic. My question is: If I accept their offer, keep the car and fix it myself, what effect will the salvage title have on the future value of the car as a collectible? -brain

01-10-2008, 11:33 AM	#6 (permalink)
EL PAALO Wheels make the car. Join Date: Feb 2005 Location: San Marcos, TX Posts: 2,671 Thanks: 4 Thanked 86 Times in 82 Posts My Google Map iTrader Rating: (3/100% )	If you care about being able to sell it for more than $1 later, don't take the salvage title. __________________ WHEELSPECS.COM - a ridiculous number of wheel pics & links

01-10-2008, 05:08 PM	#9 (permalink)
TomsMR2 Still not heraldo. Join Date: Feb 2005 Location: Pineapple under the sea Posts: 4,911 Thanks: 18 Thanked 406 Times in 303 Posts Blog Entries: 1 iTrader Rating: (4/100% )	4700 bucks would get you a nice 88sc. id take their offer, junk the car, and pickup an 88. __________________ Science fact: If you took all the veins from your body and laid them end to end, you would die.

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01-10-2008, 02:33 AM	#2 (permalink)
PHOENIX Beams Owners Group Join Date: Mar 2005 Location: On Hiatus....... Posts: 9,266 Thanks: 92 Thanked 292 Times in 224 Posts Blog Entries: 1 My Google Map iTrader Rating: (49/100% )	Some states have options after issued a salvage title. If you are able to restore it to good condition, they will issue you a "restoration" title which is better than salvaged. A salvage title basically states the car has been in an accident where the price to fix the car was more than the car is worth. Unfortunately, this does effect resale value

01-10-2008, 08:36 AM	#3 (permalink)
PearlJammzz Cage Fighter Join Date: Feb 2006 Posts: 2,115 Thanks: 9 Thanked 74 Times in 69 Posts My Google Map iTrader Rating: (7/100% )	It effects it a LOT. I would raise hell and call ******** on the whole deal. If they give you a check, don't cash it. That's like settling, even if they offer future payments, or whatever. My friend's Celica was hit and they were only going to give him like 3500-4k cause that's all it booked for. His old man got on the phone and flipped balls at them and got ~7k total, car was totaled out though. He got the 7k by proving how rare and such it was (like a 96 celica GT, not THAT rare but also not no civic). So I say fight it, if they are going to make it a salvage title then make sure you get enough money to compensate for the loss in retail value (usually quite a bit, depending on the car) and the hassle of getting it to where you can register it and such. IIRC a few states you can't register a salvage titled car.

01-10-2008, 09:12 AM	#4 (permalink)
mr220v Beams Owners Group Join Date: Mar 2006 Posts: 2,529 Thanks: 13 Thanked 176 Times in 147 Posts iTrader Rating: (11/100% )	If you think the offer is otherwise fair, see if they will give you the same amount of money, but without the salvage title. This has worked for me on two occassions. Salvage titles are a pain in the ass more than anything. In Georgia, to get retitled, you have to get the car inspected by the state before repairs are made, and then after the body damage is fixed, but before it is painted. If your car is collectable quality, a salvage title will hurt that for sure.

01-10-2008, 11:26 AM	#5 (permalink)
kanga ..brakes are over rated.. Join Date: Nov 2007 Location: from Nor Cal to Chandler, Az Posts: 168 Thanks: 17 Thanked 9 Times in 8 Posts iTrader Rating: (0/0% )	my first car was a 03 salvage civic with a restored title i got it for 3500 with only 2,000 miles on it and those cars normally go for about 14k ish but then again its a civic

01-10-2008, 04:28 PM	#7 (permalink)
brain No Skills Join Date: Jan 2008 Posts: 4 Thanks: 12 Thanked 0 Times in 0 Posts iTrader Rating: (0/0% )	Thank you for this information. I t is very helpful. After much research and argument, I got the insurance company to agree that my 1987 MR2 (with T-Roof), 20 years old, but with only 111,000 miles on it, is worth $4,700 (as opposed to their original value of a measly $1,500). I know I can get the repairs done for $4,000, but they still won't agree to repair it, calling it a "total loss." What I have to decide is whether to: a) Take their offer, accept a salvage title, and get the repairs done myself, restoring it to its former glory, b) Take their offer and try to get a comparable car for $4,700 (if that's even possible), or c) fight like hell to get them to agree to repair it and not put a salvage title on it, but then I have to fiind a way to repair it for around $3,200. My question, then is: at these prices, is this car worth restoring, since it is somewhat rare and still runs perfectly? Again, thanks for your input. -Brain

01-10-2008, 04:34 PM	#8 (permalink)
o6spdracer Nothing Clever Join Date: Jan 2007 Posts: 2,187 Thanks: 1 Thanked 112 Times in 107 Posts iTrader Rating: (1/100% )	I would do everything humanly possible not to get a salvage title on the car. Keep fighting. It will be worth it.

01-10-2008, 05:15 PM	#10 (permalink)
PearlJammzz Cage Fighter Join Date: Feb 2006 Posts: 2,115 Thanks: 9 Thanked 74 Times in 69 Posts My Google Map iTrader Rating: (7/100% )	Agreed. Depending on how bad it is, the 4700 is a good chunk of change, and should be able to buy you a comparable 2. Your old 2 can be stripped and sold for parts, or whatever you choose.

01-10-2008, 05:52 PM	#11 (permalink)
mr220v Beams Owners Group Join Date: Mar 2006 Posts: 2,529 Thanks: 13 Thanked 176 Times in 147 Posts iTrader Rating: (11/100% )	Take the $4700. Buy it back as salvage if the cost is reasonable. Transfer all of your parts to a shell, and get it repainted. You could also use the opportunity to do some maintenance (clutch, tbelt, etc...) So: $700 at most for the salvage $200-$400 for the shell $500 for a paint job (they might even be able to blend with the panels from your old car) It will be a fair bit of effort, but you could effectively get your car back for under 2k and pocket the difference. Of course mileage will be based on the shell and not your car. What parts of the car are damaged?

01-10-2008, 05:54 PM	#12 (permalink)
PHOENIX Beams Owners Group Join Date: Mar 2005 Location: On Hiatus....... Posts: 9,266 Thanks: 92 Thanked 292 Times in 224 Posts Blog Entries: 1 My Google Map iTrader Rating: (49/100% )	Yeah, i would strip if of the clean/nice parts and buy an 88sc

01-11-2008, 07:58 AM	#13 (permalink)
EL PAALO Wheels make the car. Join Date: Feb 2005 Location: San Marcos, TX Posts: 2,671 Thanks: 4 Thanked 86 Times in 82 Posts My Google Map iTrader Rating: (3/100% )	even though it was in pristine condition, it's now been wrecked and those repairs will show in some way. even if it's an excellent job, you'll still notice small things. I agree on taking 4??? plus your car salvaged. that seems like a surprisingly fair value by an insurance company.

01-11-2008, 10:04 AM	#14 (permalink)
phzoinkMKII Now with more Triforce!!! Join Date: Mar 2006 Location: D.C Area Posts: 2,197 Thanks: 4 Thanked 76 Times in 70 Posts My Google Map iTrader Rating: (4/100% )	Wow 4700 is not bad. I have to agree with everyone else in taking their offer and buying a shell or another car. If it's going to cost around 3200 to fix it's not worth it.

01-11-2008, 12:52 PM	#15 (permalink)
brain No Skills Join Date: Jan 2008 Posts: 4 Thanks: 12 Thanked 0 Times in 0 Posts iTrader Rating: (0/0% )	The left rear bumper and fender, the left quarter panel, and the left front bumper and fender were damaged. There also appears to be some suspension damage, because the left front tire is a little further back than the right one.

01-21-2008, 01:51 AM	#17 (permalink)
Mista 2 Cage Fighter Join Date: Nov 2006 Location: Adelaide, Australia Posts: 463 Thanks: 16 Thanked 21 Times in 21 Posts My Google Map iTrader Rating: (0/0% )	try and cut a deal to get about $4,500 and you get to keep the car even if it is written off as damaged. you could keep the good parts and im sure other people on the forum could buy some of the parts that you dont want off you. we can do this in australia but i dont really know about this sort of then in the US. good luck with it!!! Mista 2 Jordan

01-21-2008, 09:37 AM	#18 (permalink)
mr2ace living life out loud Join Date: Aug 2007 Location: Naperville, IL Posts: 149 Thanks: 5 Thanked 2 Times in 2 Posts My Google Map iTrader Rating: (0/0% )	This is what I would do... try to get about $4500 out of it from the insurance co. buy back the car from the insurance co. for a reasonable price (if they let you) remove the "keeper" parts from the car part it out and make a bunch more money get a nice 88SC or 91t just my $0.02

01-21-2008, 10:39 AM	#19 (permalink)
canadam MidshipExpress Join Date: Feb 2005 Location: Beautiful British Columbia Posts: 10,399 Thanks: 120 Thanked 142 Times in 121 Posts My Google Map iTrader Rating: (34/100% )	Perhaps I'm too honest, but when selling the car in the future the law requires full disclosure of previous damage. Anyone buying the car should be made aware of the fact that the car was a total loss at one point, regardless of the title. To me as a buyer, there would be an equal detriment to the vehicles worth.

01-21-2008, 11:17 AM	#20 (permalink)
55mr2 2Old2Give2Hoots Join Date: Jul 2007 Location: Winnipeg Posts: 351 Thanks: 10 Thanked 30 Times in 24 Posts My Google Map iTrader Rating: (3/100% )	A salvage title, in and of itself, is not the kiss of death, maybe just a cold hug. My car has a salvage title but I also have pictures of the previous damage. I know what kind of damage it had, I know it was repaired professionally and to a high standard, and so I was comfortable going ahead and buying it. I probably paid less for it but it would be hard to say for sure because there are not any like mine around to compare. I do know that I was made aware of the fact that the car had been written off and I could therefore make an informed decision. Having said that, I also think that your preferred option is to get the cash, buy it back for cheap, keep what you need, part out the rest, and get yourself another clean 2.