|
Used Car Buying Help:
Buyer Beware:
|
•
2.5 million vehicles are totaled each year (Accident & Flood damage).
"Consumer Reports"
Each year there are over 400,000 vehicles that are "Totaled", sold
for salvage, and are now back on the road again. (Hurricane Katrina put in
additional 450,000 vehicles that year.) Some Dealers and Wholesalers buy "Salvage" or "Recondition" vehicles, then illegally
"cleaned" their titles before they sell to the general public. One third of the totaled vehicles on the road today will have no documentation to show that the vehicle
was once declared as salvage. CARFAX can not report a total vehicle if the state
did not create a salvaged or reconditioned title for that vehicle. One of the big concerns for used car buyers is the way the used car
industry recycles totaled vehicles back onto the used car lots. These once salvaged
vehicles create a financial and safety risk for the general public. Today's cars are built using robots to
make precise welds during the assembly process. These welds are were made in a enclosed environment on perfectly
formed metal to create a structural cage designed to protect the passengers.
When a vehicle is in an accident, the structural components absorb the energy of
an collision by crumpling and deforming the frame to protect the passenger
compartment. Once the frame has been wrecked, it can not be un-wrecked. There are many ways that salvage vehicles return to the road. Here is just one example: A vehicle is declared a total loss by an insurance company, either by collision damage, fire, flood, theft recovery, etc. A total loss means the
vehicle can not cost-effectively be repaired to mechanical and/or structural safety standards, and
should be cannibalized for parts only. The regular title is normally surrendered to the
State, and the State would issue a salvage certificate. The salvage wreck is then sold to
a salvage yard or through a salvage auction. Many of these salvage vehicles will look good but the
structural components are still damaged and not repaired. While these cars may look
good with a fresh coat of paint, they are structurally and mechanically
unsound and worth only a fraction of the book value. Once again, these vehicles
were declared "Totaled" by the insurance company. But what about the title? These salvage rebuilders ask the state
to issue a negotiable title. Since the totaled vehicle was issued a
salvage certificate the state will issue a title
with the designation of "Recondition"
or "Salvage" which means the vehicle was
Beware, these
"Recondition" or "Salvage" titles can be "Washed" or "Cleaned" by simply transferring the title back and forth to another state which does not include
"Recondition" or other discrepancies on their titles. Once these vehicles have a "Clean" title, it is easy to get them to
the auctions or sell them directly to the public. These once salvage vehicles can end up at reputable dealerships.
There are also used car dealers,
wholesalers, auctions, and curbstoners that will sell vehicles that have questionable histories. The
incentive is profit. Dealers and individuals can make twice the profit on selling a used car rebuilt
from salvage versus a normal used car. Ultimately, the general public
will purchase, finance, and drive these vehicles not knowing that they once were totaled. Recondition vehicles are not recommended for purchase. These cars
may have chronic mechanical problems and there is no way to determine if the
vehicle is structurally sound. In a minor collision, the car's frame is likely not to
protect the passengers. "Salvage" vehicles are not subject to
federal safety standards. Totaled vehicles from flood damage may not have any structural problems.
However, these cars will have chronic electrical, mechanical, and rust problems.
CBS News' 60 Minutes estimates that 1 in 15 vehicles on the road today have been
created from salvage.
Don't Buy a Used Car With Past or Current Problems Expert Advice on Wheels™ Home | Site Map | Privacy Policy | Contact | Feedback
|