Car Dealers Hide Salvage Titles – Be Careful!
12-20-2016, 11:40 AM
#1
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Car Dealers Hide Salvage Titles – Be Careful!
Here’s the first thing you need to know about salvage title vehicles: they’re worth a fraction of the value of the same car that has a clean title. The second thing you need to know is that salvage vehicles can be poorly repaired, if they’re repaired at all. And the third thing you need to know is that dealers who sell salvage vehicles are bound by law to disclose that the vehicle has a salvage title.
What Is Disclosure?
When a dealer discloses that a vehicle has a salvage title, it has to be a real disclosure. It can’t be buried in fine print. If a dealer says that a car “may” have been salvaged, or “may” have been totalled, that’s not enough.
They Lie
However, a dealership will often say that they had no idea that a vehicle had a salvage title. This is not to be believed. A dealership always knows the title history on a vehicle they’re selling, and they know if it’s clean or salvage. If a dealership tries to tell you that they don’t know if a vehicle has a salvage title, walk away. The dealership is under a duty to know what kind of history a vehicle has before they put it up for sale.
Dealerships have any number of ways of trying to hide a salvage title. The most frequent means is what’s known as “title washing”. This is a process whereby a car is sent out of a particular state to get a title, and then brought back into the original state, or even sent to a third state, in order to be sold. It works because it takes time for the title to be recorded in other states.
Often, the title brand won’t show up until an unsuspecting customer has bought the vehicle. Even if the brand doesn’t show up at the time of sale, and is later reported, the dealership isn’t necessarily off the hook if they knew that the car had a salvage brand in its history, which is very likely.
You Must Protect Yourself
So, how are you going to protect yourself against a dealer who is unscrupulously trying to sell you a salvage car without your knowledge? First, you can get a Carfax report. It won’t protect you completely against all types of malfeasance, but it usually will tell you if the car is a salvage vehicle.
Some dealerships will offer you a free Carfax report before you sign the purchase agreement. Then they might claim that the report didn’t come through, but you should just sign and they’ll give you the report later.
Don’t sign. Keep in mind that a dealership isn’t bound by any law to give you a Carfax report, but if they promise one and seem reluctant to deliver it, that’s a red flag that you should walk away from the deal.
If you do end up with a salvage vehicle, and the dealership didn’t disclose that status to you, ask for your money back. Demand a trade of your choice, of equal value. If they don’t make it right, see a lawyer to ensure that your rights are protected.
References:
www.carfax.com
https://www.autoauctionmall.com/learning-center/how-do-car-dealers-hide-salvage-titles/
Hope this helps anyone looking to buy a car at the moment!
What Is Disclosure?
When a dealer discloses that a vehicle has a salvage title, it has to be a real disclosure. It can’t be buried in fine print. If a dealer says that a car “may” have been salvaged, or “may” have been totalled, that’s not enough.
They Lie
However, a dealership will often say that they had no idea that a vehicle had a salvage title. This is not to be believed. A dealership always knows the title history on a vehicle they’re selling, and they know if it’s clean or salvage. If a dealership tries to tell you that they don’t know if a vehicle has a salvage title, walk away. The dealership is under a duty to know what kind of history a vehicle has before they put it up for sale.
Dealerships have any number of ways of trying to hide a salvage title. The most frequent means is what’s known as “title washing”. This is a process whereby a car is sent out of a particular state to get a title, and then brought back into the original state, or even sent to a third state, in order to be sold. It works because it takes time for the title to be recorded in other states.
Often, the title brand won’t show up until an unsuspecting customer has bought the vehicle. Even if the brand doesn’t show up at the time of sale, and is later reported, the dealership isn’t necessarily off the hook if they knew that the car had a salvage brand in its history, which is very likely.
You Must Protect Yourself
So, how are you going to protect yourself against a dealer who is unscrupulously trying to sell you a salvage car without your knowledge? First, you can get a Carfax report. It won’t protect you completely against all types of malfeasance, but it usually will tell you if the car is a salvage vehicle.
Some dealerships will offer you a free Carfax report before you sign the purchase agreement. Then they might claim that the report didn’t come through, but you should just sign and they’ll give you the report later.
Don’t sign. Keep in mind that a dealership isn’t bound by any law to give you a Carfax report, but if they promise one and seem reluctant to deliver it, that’s a red flag that you should walk away from the deal.
If you do end up with a salvage vehicle, and the dealership didn’t disclose that status to you, ask for your money back. Demand a trade of your choice, of equal value. If they don’t make it right, see a lawyer to ensure that your rights are protected.
References:
www.carfax.com
https://www.autoauctionmall.com/learning-center/how-do-car-dealers-hide-salvage-titles/
Hope this helps anyone looking to buy a car at the moment!
12-31-2016, 12:12 AM
#4
Using sites like AutoCheck or Carfax will solve most of this issue... Outside of Indiana and I believe Kentucky most states will show a flood/salvage or rebuilt status. Indiana is notorious for the practice and most banks will run their own AC or CF prior lending.
Very few banks, credit unions or finance companies will lend on branded titles or lemon law units. As the failure rate on those loans are incredibly high and the cars tend to be problematic.
As for the OP the post reasoning is clear. But with that in mind make sure you do a AC or CF on any car prior to purchase.
Very few banks, credit unions or finance companies will lend on branded titles or lemon law units. As the failure rate on those loans are incredibly high and the cars tend to be problematic.
As for the OP the post reasoning is clear. But with that in mind make sure you do a AC or CF on any car prior to purchase.
12-31-2016, 12:05 PM
#5
i got stuck with one 10 years ago....but thankfully it was a very inexpensive car and i just drove it into the ground and then parted it out when the engine died. I didnt realize it until somebody came looking to purchase some parts and he said the history of the car didnt check out. Led me to some digging and low and behold it was a salvage title that nobody caught. My insurance company was notified and thats where it ended.
12-31-2016, 01:27 PM
#6
Team Owner
This past summer, my wife was heading off to meet a friend for lunch, when some geriatric geezer didn't realize the traffic had stopped for a red light. This guy DRILLED my wife in the back, and then shoved her into the car in front of her. Our car was mashed on both ends.
The car was "totaled out" by the insurance company, as the repair estimate crested the $36,000 mark. It went to an insurance auction, and some "questionable" used car huckster in Brooklyn is trying to pass it off as a "lightly damaged, easily repairable" car.
Yeah...............that's why it was "totaled", and has a salvage title. If it was that "lightly damaged", they would have fixed it, and stuck me with it!!!
01-04-2017, 07:05 PM
#7
Melting Slicks
Using sites like AutoCheck or Carfax will solve most of this issue... Outside of Indiana and I believe Kentucky most states will show a flood/salvage or rebuilt status. Indiana is notorious for the practice and most banks will run their own AC or CF prior lending.
Very few banks, credit unions or finance companies will lend on branded titles or lemon law units. As the failure rate on those loans are incredibly high and the cars tend to be problematic.
As for the OP the post reasoning is clear. But with that in mind make sure you do a AC or CF on any car prior to purchase.
Very few banks, credit unions or finance companies will lend on branded titles or lemon law units. As the failure rate on those loans are incredibly high and the cars tend to be problematic.
As for the OP the post reasoning is clear. But with that in mind make sure you do a AC or CF on any car prior to purchase.
01-05-2017, 02:57 PM
#8
Race Director
Actually, many salvage titled vehicles can be excellent buys at 40-50% the cost of a non-salvage title vehicle. Many insurance companies (like Mercury) do insure salvage vehicles. Just make sure you know what the replacement value is to them.
Many vehicles are salvaged only because the exorbitant cost of repair exceeds the value. Fortunately, there are quite a few experienced auto body repair guys out there who buy the damaged vehicle, repair it, and sell it for a profit. Their cost to repair the vehicle is far less than what many auto body shops would charge the insurance company.
Granted, some paint jobs are somewhat sloppy, but we're not talking Ferraris and Lambos in most cases.
Do your homework before buying a salvage title vehicle and you can same thousands (as I have) on a reliable vehicle.
Many vehicles are salvaged only because the exorbitant cost of repair exceeds the value. Fortunately, there are quite a few experienced auto body repair guys out there who buy the damaged vehicle, repair it, and sell it for a profit. Their cost to repair the vehicle is far less than what many auto body shops would charge the insurance company.
Granted, some paint jobs are somewhat sloppy, but we're not talking Ferraris and Lambos in most cases.
Do your homework before buying a salvage title vehicle and you can same thousands (as I have) on a reliable vehicle.