Used car prices are up
Used car prices are down
Used car prices are the same
Everyone has a different viewpoint and opinion on why used car prices are staying elevated, what is a good deal, and where the market is heading.
But no one really knows.
Are used car prices falling? Well no thinks they are ‘falling’ but maybe slightly decreasing?
Maybe some are, but the good ones are still commanding top dollar, especially as new car prices and financing options stay elevated.
Of course the internet message forums are full of horror stories like
‘I can’t find ANYTHING!’
and
‘Sellers are asking $20k for a 20 year old car…what can I do!’
Now we don’t know the full story behind these complaints and rants, but for sure prices are higher due to many reasons, and we’ve got to find a way to adapt, adjust and overcome instead of just ranting on some reddit thread.
One way an ever increasing number of people are adapting and overcoming is to check out cars with rebuilt titles.
But aren’t rebuilt titles guaranteed junk you ask?
Wait, how does a car actually get a rebuilt title?! What even is a rebuilt title?!
The process to assign a rebuilt title on a car can be confusing and convoluted, depending on the State the car resides in, but it generally happens like this:
-The vehicle was in a wreck or damaged by a tree, hail, or flood, etc
-The insurance company decides that it will cost too much to fix the vehicle (insurance companies utilize a ‘cost-to-fix’ threshold percentage compared to the vehicle’s value to determine if its worth repairing or not)
-The insurance company pays the owner and the insurance company takes possession of the vehicle
-Now the insurance company has a car, but they really want money, so they send that car, now with a salvage title, off to auction
-An individual or a rehab shop then buys the salvaged car and fixes it.
-The vehicle is inspected by a 3rd party (to some level), and if the vehicle passes the inspection, the local Department of Motor Vehicles issues the vehicle a rebuilt title
This process can vary state to state (and even county to county)…so YMMV
Rebuilt title cars are supposed to meet safety standards and the inspections are supposed to catch incorrect
and shady repairs, but as a buyer, you do need to ask the correct questions and do some research.
Rebuilt titles got a bad name before the ease of tracking VINs and the age of online pictures, and many buyers didn’t know the level of damage a car had or any insight to its past. This led to many unscrupulous sellers hiding damage and passing off hastily repaired cars to unsuspecting buyers. News stories popped up about these ‘fly by night’ shops that were selling off unsafe and unreliable wrecked cars with some quick fixes and rebuilt titles…..causing headaches for buyers and causing many to completely avoid ‘branded’ title cars all together.
Another issue plaguing ‘branded’ title cars is that not all states issue distinct ‘rebuilt’ titles (the title will still say ‘salvaged’ regardless of it being repaired or not) and the threshold for a car to go from salvage to rebuilt is not consistent from state to state. States that don’t distinguish between salvage and rebuilt also opens up avenues for ‘title washing’, which is a method where scammers move the title from state to state and end up with a ‘clean’ title with no record of the salvage history. This can get confusing. Why can’t anything be simple!?
To learn more about this, check out our YT vid on this very subject:
Thankfully, however, things have changed a bit. For the benefit of the buyer.
First, in the internet age, it is easier to track the history of a car online via Carfax/Autocheck and via VIN history. Most of the time, the auto auctions that deal in salvage title cars will post the VIN, so a VIN search by a buyer will show the car before it was purchased and fixed. This can provide a quick go/no go decision. Was the car completely flattened by a falling tree or was it involved in a minor fender bender? If a VIN search comes up with a different car or something that feels off, walk away from that car.
Second, state motor vehicle databases are more integrated now, so tracking the history of the car is easier. This still may mean that you have to call or go visit an office, but a small amount of work can save lots of headaches and money in the future.
Third, cars and parts have gotten so expensive, rare, and complex that insurance companies are totaling out cars just for busted headlights and crunched fenders due to parts prices and body shop labor costs. There are now an ever increasing amount of cars with ‘minor’ damage hitting the market that have rebuilt titles but are still safe and have many years of service left in them. Just check out these OEM headlight prices and you’ll see how fast repair costs can skyrocket:
I know you’ve already guessed it……here comes the BUT!
1. Check with insurance companies. Some insurance companies won’t insure (or fully insure) a salvage or rebuilt title car, no matter the level of damage it incurred. If full insurance is important or necessary to you, then a rebuilt title car may not be for you. However, if you are looking for a backup car, a weekend beater, or a toy, then a rebuilt title car might fit the bill.
2. Regardless of the title situation, you are still looking at a used car. This means to follow the steps of:
-Check the VIN and the paperwork with the seller. The level of ‘straightforwardness’ of the seller will speak volumes.
-Do some ‘net research and/or ask your ‘car’ friends to check it out for weirdness
-Call your local DMV to understand how they issue salvage and rebuilt titles if necessary
-Give the car a thorough test drive and check all the features and systems.
-Get a Pre Purchase Inspection if anything feels ‘off’
-If you get weird vibes, walk away
3. This is a good BUT…….expect a lower price and haggle with the seller. Branded title cars have a much smaller audience and can cause headaches in a variety of ways (like insurance and inspections), so getting a lower price helps ease that pain. Come educated and equipped with knowledge of the damage and don’t be afraid to low ball the seller.
All of this is not meant to scare you off from a salvage, rebuilt, or branded title car. There are plenty of legit, properly repaired, safe and reliable used cars out there with branded titles, with more and more added everyday, mainly due to the aforementioned cost and complexity built into new cars. In this age of high car prices (both new and used), many are looking at any and all ways to save a few dollars. So if you are looking for a cheap beater car, a run the wheels off commuter car, a backup car, or something like an offroad toy or a track car, then a rebuilt title car may just be the ticket.
Take you time, do some research, trust your instincts, and reach out to us at info@wyndscreen.com if you have any questions!
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