Does the GX 470 have frame damage and a weird change in auction (salvage auction)

[GON]

Trying to determine if this GX 270 has frame damage. At first I didn't think so, but looking closer at the bumper, it appears to have taken a hard hit. Yet I am not seeing damage to the quarter panels, even the rear door, although unrepairable, does look catastrophic. But the twist in the center of the bumper is visible, and that is a heavy steel bumper.

This 2005 GC 470 was supposed to go to live auction this upcoming Wednesday 12 APR 2023. The bid had gone up to $6050 USD. GEICO is the Seller (important), the GX 470 has under 90k miles. Decent maintenance records. Only issue is the first year of this Lexus' life was registered in Missouri, which can meet salt exposure, and these GX 470 are subject to frame rust. The rest of its life was registered in Washington state.

Now the weird part. This vehicle went from a Wednesday live auction to a Saturday live auction. GEICO states the car is worth $17,400, and repair costs are $14,000. Yet the bids were above 6k for Wednesday. Why would GEICO switch from a live auction to a timed auction? GEICO as a monster huge insurer, and they are not tracking this vehicle any more than any other vehicle. One thought is that the vehicle can be previwed if going to live auction the day before the auction. In this scenario, the vehicle is not able to be previewed, as the timed auction was listed when the auction site is closed, and will sell at auction while the auction house was closed.

It could be the cost of a rear bumper, rear door, bumper cover, and related items is $14,000, using parts for a "low mileage" luxury SUV. If the damage seen is all there is, used parts are likely under $2500.

I have never seen a vehicle pulled from the live auction block to the timed auction block, especially when pre-bids were at least $2k over the reserve. Something is off here, and maybe the master minds can see what I am not seeing.

2005 LEXUS GX 470 for Auction - IAA

2005 LEXUS GX 470 for auction at Seattle (WA) branch location. Actual Cash Value: $17,423 USD - Mileage: 85,160 mi (Not Required/Exempt) - Color: SILVER - Transmission: Automatic - Stock: 36071353

www.iaai.com

 

[supton]

I’m no mastermind, so all I’m seeing is a wreck I wouldn’t touch with a 10’ pole. BUT you’ve been able to find some diamonds in the rough.

Water damage from sitting long time with that rear hatch cracked open? I’m thinking that has more tweaking than meets the eye.

Maybe, due to the labor shortages, whoever took this in and appraised it didn’t know what they were doing, highballed it, and thus it went up with high expectations—and when someone more knowledgable came along, they rectified that.

Or maybe the market for damaged cars is getting soft? Am guessing that if this was fixed, it’d have a salvaged title, be harder to sell, thus if the economy was getting soft, the ROI might not be there for this.

?

 

[GON]

I’m no mastermind, so all I’m seeing is a wreck I wouldn’t touch with a 10’ pole. BUT you’ve been able to find some diamonds in the rough.

Water damage from sitting long time with that rear hatch cracked open? I’m thinking that has more tweaking than meets the eye.

Maybe, due to the labor shortages, whoever took this in and appraised it didn’t know what they were doing, highballed it, and thus it went up with high expectations—and when someone more knowledgable came along, they rectified that.

Or maybe the market for damaged cars is getting soft? Am guessing that if this was fixed, it’d have a salvaged title, be harder to sell, thus if the economy was getting soft, the ROI might not be there for this.

?

SUP,

If this SUV was not in a accident, it would likely sell in the $14k-21k range. Crazy, as this SUV is worth more today (pre-accident) that I would have sold for in 2018. The GX 470 has a cult following among (primarily) tech workers wanting an alternate to Jeep Wranglers.

Your comment "I’m thinking that has more tweaking than meets the eye." Is likely the issue here. I arrived home at 0330 Pacific this morning, the SUV was at $4025. After waking up, the SUV moved to $4150. It is now at $4225. There is definitely interest in this SUV. In Washington state, one does not need a dealer license to purchase at salvage auction, so retail buyers are "in the mix". If this exact vehicle was in lets say South Carolina, I suspect the bidding price would be significantly lower.

Of note, the high bidder before the SUV went from live auction to timed auction was from New Hampshire. So at 6k auction price, another 1k in fees, and 2k to transport from Seattle to New Hampshire, the buyer was at 9k, before even inspecting the damage except from open source pictures.

I saw a slight lowering of some sales prices at auction, but any vehicle that is desirable, such as a Japanese SUV or a US full size pickup, paying are very willing to pay above top dollar for a salvage SUV or truck.

 

[dishdude]

A picture of the tailgate up would be nice, that floor pan is probably destroyed.

 

[CKN]

A picture of the tailgate up would be nice, that floor pan is probably destroyed.

Personally-my bet is that was such an impact there was frame damage. It seems that 90% of the time on these examples-the appraiser has solid justification for sending vehicles to the junkyard.

Of course that still doesn't stop guys from throwing money at them.

 

[meep]

That’s a tow hitch that took the impact. Right there I’m going to be suspect that the trunk floor is a bit warbly at this point. It would take some cutting, bending, and welding by my amateur mind to straighten it out. I’ll bet it drives fine, but the cost to straighten out non-critical steel is far too much for original condition metal in the tail.

by the angles, it looks like they had a drawbar installed. For kicks, I’d like to see a write up on the vehicle that hit it.

 

[GON]

Twenty minutes until the auction ends. Price is now $6850. That means about 10k total if vehicle needs to be shipped, which looked likely from the states the bids came from.

Big disconnect here. Either the GEICO appraiser made a mistake in the damage assessment, otherwise the retail bidders are in for a good lesson. I would have gone 6k on this, only because this is 20 minutes from my house. I am relieved the price is above my max bid price. The bidders could not have previewed this car, as the preview day would have been Tuesday 11 APR 2023. Finally, the rear door is a side opening, not a bottom opening. Not sure if the adds or reduces risk to the repair.

One thing I don't consider- what impact is the printing of the USD having on used car prices. Maybe a used car selling for $2k USD in 2015 is now a $7k USD car. The car value hasn't changed, the buying power of the USD is what has changed.

 

[GON]

Auction ended. sold for $7125 USD pre fees. Post fees, $8158. Needs to be picked up NLT this Wednesday 12 APR 2023, or $35 per day storage fee. And shipping to the New Hampshire or the like about $2k USD. So $10,158 for a vehicle that is salvaged, has damage one can't see/access in the photos, and no pre inspection allowed.

 

[DuckRyder]

Bill of Sale? I know Washington has some weird salvage rules but that would give me pause. Agree the floor is not going to look nice. Rear door gaps look suspect...

 

[GON]

Bill of Sale? I know Washington has some weird salvage rules but that would give me pause. Agree the floor is not going to look nice. Read door gaps look suspect...

Yes, bill of sale. After repair, State of Washington will inspect the vehicle and issue a rebuilt title if it passes the inspection. I do not know how this works for out of state buyers, looking to convert the bill of sale to a rebuilt title in a state other than Washington. And of special note, the vehicle must be towed / transported to the Washington state inspection (the vehicle to be inspected can't be driven).

 

[RhondaHonda]

The gold nameplates are probably discontinued. I’ve seen stranger things cause a car to get totaled.

 

[DuckRyder]

Yes, bill of sale. After repair, State of Washington will inspect the vehicle and issue a rebuilt title if it passes the inspection. ...

Yeah a WA "Destroyed" title might be fun in another state.. Id like to hear how that goes at the FLA DMV where a "Certificate of Destruction" is equivalent to "Junk" or "parts only"...

 

[GON]

Yeah a WA "Destroyed" title might be fun in another state.. Id like to hear how that goes at the FLA DMV where a "Certificate of Destruction" is equivalent to "Junk" or "parts only"...

I "can't ever be rebuilt" FL or TX vehicle can be rebuilt and titled/ registered in the state of Washington and one other state. The issue becomes if one wants to register that vehicle in a state other than Washington, most states will not allow that. Vehicles with the "never be rebuilt" designation are often good matches for export to the Middle East, Africa, or SE Asia.

 

[GON]

Two supplemental post auction comments. A trailer hitch was an option on the GX 470. This 470 did not have this option installed, an no aftermarket hitch appears to have been installed. I enlarged the interior pictures and noticed deep stains in the back seat carpet. That implies the car was not older adult driven, nor flawlessly cared for.

I have this exact year, exact color GX 470 in my garage, I am currently doing a rebuild from a hard-hit front-end accident. I paid about $3100 for it, if memory serves me a little under $4k out the door.

 

[CKN]

The gold nameplates are probably discontinued. I’ve seen stranger things cause a car to get totaled.

It appears based on posts here the appraisers get it right the vast majority of the time and there are not many " pound the dents out" and you are good to go in these auction junkyards.

 

[meep]

@GON , is that not a hitch and chain loops?

 

[dishdude]

It appears based on posts here the appraisers get it right the vast majority of the time and there are not many " pound the dents out" and you are good to go in these auction junkyards.

Not if you want to do it correctly. Someone looking for a cheap beater buying an older low value vehicle that was in a light fender bender I can see going this route. $8k for a nearly 20 year old SUV that took a hard hit to the rear? Hard pass.

 

[GON]

@GON , is that not a hitch and chain loops?

@meep , what you are seeing is the rear bumper, not a trailer hitch. I just went in the garage and took a picture of the same vehicle, also without a trailer hitch. I did buy a factory hutch, it is what is in the boxed picture.

On thing you question led to a discovery, is the rear bumper is welded on, not bolted on. That adds other issues. I am suspecting the gs470 has some twist to the frame. Unlike the front of the gx470 which as pressure relief for a bumper impact, I did not see a like design for the rear, although I did not study it for long as the concrete was cold and I am old. Old and cold don't always mix well for me.

oil

 

[meep]

@meep , what you are seeing is the rear bumper, not a trailer hitch. I just went in the garage and took a picture of the same vehicle, also without a trailer hitch. I did buy a factory hutch, it is what is in the boxed picture.

On thing you question led to a discovery, is the rear bumper is welded on, not bolted on. That adds other issues. I am suspecting the gs470 has some twist to the frame. Unlike the front of the gx470 which as pressure relief for a bumper impact, I did not see a like design for the rear, although I did not study it for long as the concrete was cold and I am old. Old and cold don't always mix well for me.

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Ahhhhhhhhhh. Ok I see now. Totally agree with you @GON

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