Buying a Previously Damaged Car

Buyers beware of a previously damaged car and the hassle of trying to get it insured.

This is one previously damaged car you may not want to purchase.

Most of us have seen the pictures that surfaced in the days following Hurricane Sandy. The sheer destruction that the storm caused to almost everything it came in contact with, including an incredibly high number of vehicles, was staggering. For me, the cars submerged underwater and piled against the opening of an underground parking garage is one of the pictures that sticks out most in my head.

That picture got me thinking about all the salvaged titles that I have talked to people about in the past. It also made me wonder how many of those vehicles will end up being sold to unsuspecting buyers, instead of ending up in a junkyard.

Why Do These Vehicles End Up Being Resold?

Because water damage leaves very little trace, it’s very easy for some unethical people to buy a salvaged vehicle and then sell them to buyers enticed by the low price tag they see. What they don’t see though, may be hidden mold that can damage their heath, electrical systems that can short out and cause a car fire later down the road, as well as damage to engine parts if the car was in salt water (most of the cars damaged by Sandy were).

To protect yourself as a buyer, always check the history of a vehicle before you handover any money.

Checking the History of Damaged Cars

Anytime a vehicle is totaled out it has to be reported to the National Motor Vehicle Title Information System within 30 days. This data base helps to protect buyers from purchasing vehicles that were previously damaged without them know about it.

To access the report for the vehicle you are interested in, visit vehiclehistory.gov. The report will provide you the information you need to find out if the vehicle is good or was previously damaged and has a salvage title.

What are Salvage Titles for Damaged Cars?

If you pull a report for a vehicle and it lists that there is a salvage title for that vehicle, this means that the vehicle was declared a total loss by an insurance company in the past. A vehicle that has been declared a total loss by an insurance company means that the total amount to fix the car exceeded 75% of the worth of the vehicle.

The problem with salvage titles is that they are hard to insure. Most insurance companies don’t want to cover a vehicle that has had that much previous damage to them. Before you choose to purchase a damaged car with a salvage title, contact your insurance company.