Can we expect to see more salvage/rebuilt used cars in the future?

[Elkins45]

Shopping for used cars has become sort of a dumb time-wasting hobby of mine over the last couple of years. I'm seeing lots of rebuilt cars. For many of them you can search the VIN and see photos from the salvage auction, and a lot of those photos show such minor damage that I would likely just keep driving it without fixing anything. I've read that insurance companies are quick to total cars in the $5K-$10K range for anything much more than damage to one panel, or for more expensive newer cars if anything in the front end safety sensors is involved. Logically, moving forward that would mean that an increasing number of otherwise functional cars will be sent to the salvage auction and then will hit the used market as rebuilt vehicles.

One local example is what started me thinking about this. There's a guy selling a rebuild 2008 Toyota Avalon with 130K miles for $4600. It has a rear driver's fender ding and paint scrapes down the passenger side but no obvious signs of a major crash when you look underneath it. I found the auction photos and it looked exactly the same in the auction as it does in the sale photos. It was described as "damage all over" as the primary reason for salvage. I don't think the seller did much, if anything to repair it yet he assured me it was a rebuild and not salvage title. KY requires documentation of work performed to issue a rebuilt title for a salvage car...I would love to see what that documentation looked like LOL.

Will the used market be flooded with rebuilds in the next 10 years as more complex new cars become uneconomical to fix?

 

[fantastic]

As long as rebuilding can be accomplished legally there will be rebuilt vehicles. More? maybe if the market doesn't favor newer vehicles. I remember the 08' recession and there were old economy boxes coming out of the woods for folks to get around in.

 

[fsdork]

... I don't think the seller did much, if anything to repair it yet he assured me it was a rebuild and not salvage title. KY requires documentation of work performed to issue a rebuilt title for a salvage car...I would love to see what that documentation looked like LOL. ...

Totally speculative on my part, but I would venture that the decision to grant the rebuilt title is something like:

Meets equipment regulations + nothing shady to get from original (damaged) state to current state = approved.

In other words, if the insurance company wrote it off for damage which amounted to cosmetic but still road-worthy, one could probably just get it inspected and stamped rebuilt. The documented work performed stipulation is probably to make sure there isn't a resistor in place of an airbag.

 

[mrsilv04]

What I'm seeing is about a ten-fold increase in manufacturer buy-back (lemon) cars on (new car) dealer's lots.
Even here in IL, many of them are from California. Which is a double whammy. Not only is it a lemon, it has CA emissions.

 

[CKN]

What I'm seeing is about a ten-fold increase in manufacturer buy-back (lemon) cars on (new car) dealer's lots.
Even here in IL, many of them are from California. Which is a double whammy. Not only is it a lemon, it has CA emissions.

https://www.greencarreports.com/new...nias-emission-and-zero-emission-vehicle-rules


Many new vehicles in the Western U.S. have California emissions. In addition other states in the east of adopted California standards.
Thirteen states—mostly in the Northeast and Northwest—and the District of Columbia have adopted California's stricter emissions standards, many of which also participate in the zero-emission vehicle mandate.

Known as "Section 177" states, those 13 are: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington.

For those of us that actually lived and owned vehicles in California-there seems to be zero to extremely small numbers that have any issues with longevity because of smog devices.

Many older vehicles in California due to rust being a non issue.

 

[ripcord]

Gobs of used cars are being exported annually from the US... about a million. I suspect (no data) that a good number of them are cosmetic totals.

 

[joekingcorvette]

There have always been a lot of rebuildable cars for sale. I don't think it's any different now than it was 10 years ago except major storms and floods can change the numbers a little. Buy the hail damage cars they are the best deals.

 

[earlyre]

GF's parents are going through this currently.
a couple weeks back, her dad was driving to the yard to pick up his Semi, small Deer ran out in front of him. broken headlight, cracked/broken plastic bumper cover, leading edge of the hood over the broken headlight rolled under, and missing paint, and the front of the fender deformed enough that along with the damage to the front of the hood, there's a noticeable gap. the car is a 2009 Imprezza wagon with 250k+mi.
took it to a new body shop ( their usual retired/shut down, etc) the shop and insurance (State Farm) Totaled the car. "we only use new factory original parts" the shop said, quoting them $6k.
they bought the car back ($700), have to get a salvage title, and are going to source their own junk yard bumper, hood and fender. they already bought a new headlight from the nearest Subaru dealer.

I don't think they care if the panels match. he just drives this car the 30 or so miles to the yard, picks up his truck, hits the road for 4 days, and then drives it home. it's just a runabout/work car.

 

[Exhaustgases]

Especially with older cars if you don't want a deer totaling it, then don't insure the car, just do liability, way more affordable too.

 

[silvius]

Yes, lighter damage these days will be more likely to total a car compared to in the past when there were less sensors to damage.

 

[GON]

Think in your assessment one needs to separate rebuilt vehicles from salvage vehicles.

Auctions rarely sell rebuilt vehicles. Vast majority of vehicles and auction sell are sold with a salvage title, or bill of sale. In the vast majority of states , one cannot register a vehicle with a salvage title or bill of sale. I believe one outlier is South Dakota.

When one sees a rebuilt title for sale at auction, that is almost always a sign to run away as fast as one can. The rebuilt titled vehicle at auction 99 percent of the time has a flaw so significant that the seller doesn't want to it is unable to sell at retail.

And a supplemental note, never buy a vehicle with a one time Oregon rebuilt title. Oregon does not require any inspection whatsoever to convert a salvage title to a rebuilt title, except a list of parts used. One can state no parts used, and still have a Oregon salvage title converted to a Oregon rebuilt title.

 

[Elkins45]

Think in your assessment one needs to separate rebuilt vehicles from salvage vehicles.

Auctions rarely sell rebuilt vehicles. Vast majority of vehicles and auction sell are sold with a salvage title, or bill of sale. In the vast majority of states , one cannot register a vehicle with a salvage title or bill of sale. I believe one outlier is South Dakota.

When one sees a rebuilt title for sale at auction, that is almost always a sign to run away as fast as one can. The rebuilt titled vehicle at auction 99 percent of the time has a flaw so significant that the seller doesn't want to it is unable to sell at retail.

And a supplemental note, never buy a vehicle with a one time Oregon rebuilt title. Oregon does not require any inspection whatsoever to convert a salvage title to a rebuilt title, except a list of parts used. One can state no parts used, and still have an Oregon salvage title converted to an Oregon rebuilt title.

What I’m seeing on FB are definitely rebuilds, and tons of them. They are not being sold at auction but by the small shops that are rebuilding them. Here in KY you can’t register a salvage title so it must be converted to a rebuild by submitting photos, invoices, and a description of work done to the state title office.

 

[D60]

I was pondering this recently looking at copart auctions (I guess @GON is rubbing off on me). Some of the vehicles seem like they wouldn't need much, BUT photos vs real-life can be very different.

I've said for decades it'd be great to focus more on parts for existing vehicles than constantly trying to shove new vehicles down our throats.

If you really wanted to be "green" you'd fix and use what's already out there. Instead we tool up factories to build ENTIRE new vehicles and are told to discard our existing vehicles. Doesn't make sense, thus it does.....

 

[supton]

Instead we tool up factories to build ENTIRE new vehicles and are told to discard our existing vehicles. Doesn't make sense, thus it does.....

Makes more money for those in charge.

Plus 20-30 year old vehicles do tend to be less safe and pollute more per mile. At some point it might make sense… you or I might want 30 years from a car, OEM’s might prefer more like 5.

 

[oilfan99]

Yes if you look at iaa auctions so many new looking cars that have small damage get totaled. Air bags didn't deploy and engine runs looks cosmetic I'm no expert but...

 

[Snagglefoot]

A lot of write offs are ridiculous. Doing proper rebuilds is good for the economy, helps lower inflation and provides employment. Many shops do a good job of getting cars back on the road. It’s the bad apples that spoil it.

Don’t forget there is an entire sub economy operating in the USA and rebuilt vehicles are needed.

 

[supton]

Don’t forget there is an entire sub economy operating in the USA and rebuilt vehicles are needed.

Bit of a shame, really. Personally I don't want a nicely painted car. What's a few door dings in a vehicle that is going to get trashed every winter? I had zero cares that my prior car had a badly failed paint job.

I just would want it repaired correctly. Ok, maybe shoot it all the same color, I'd rather not drive a tri colored car.

 

[SeaJay]

Back in the day we took whatever we could from the the other driver or the insurer, fixed it so that it was drivable and kept going.

 

[fdcg27]

A lot of these salvage vehicles are exported.
Georgia has made a local industry out of repairing them and selling them on, often to Russians otherwise unable to obtain vehicles from the West.

 

[Rmay635703]

Gobs of used cars are being exported annually from the US... about a million. I suspect (no data) that a good number of them are cosmetic totals.

Many of the cars that would have been a first teens car are exported due to minor damage always totaling the car.

The cost to buy a junk car is usually similar to a used car in working order making it basically a waste of time domestically.

I have seen a ton of cars driving around missing most of their body panels, hood, etc driving as found with a clean title since mid pandemic, lack of parts and overpriced repairs mean you just drive the hulk in junk rolling condition