How much of a lower value is a salvaged vehicle really worth?

Question

OK ok I was stupid and bought a salvaged vehicle. I had the car looked at and everything was fine and I bought it. It was my dream color (yellow), convertible, and was even automatic so i felt like i just had to have it :(

anyways.. it got t-boned. The lady admited fault to the cops (she was on muscle relaxtants and ran a red light) and her insurance state farm said theyd fix my car. Just found out they transferred my claim to the total loss department and that someone will be calling me in the next few days to talk about it.

I cant sleep because with the car already being a salvaged vehicle.. about what percent do they pay of the retail value?
I owe a little under 10K at the bank, and the retail on Kelly for a non salvaged 2003 ford mustang convertible is 15K and private party value is 12500. Will at least my loan be paid off? About what can i expect they will offer? Will they try to low ball me and not give me what its worth? Will I have to argue with them?

Answer 1

Hmmm...first of all, I hope you are doing okay. That's the most important part. I would not say you are necessarily "stupid" for buying a previously salvaged car. If they are repairable to the point you could not cosmetically tell it was a salvage vehicle, and the engine runs fine, you saved yourself a good chunk of change.

I am not an expert on the topic but I think insurance companies are supposed to pay you whatever the cost it takes to repair the vehicle unless the cost of repairs exceeds the total value of the vehicle. Since you are describing what seems like a "total loss", you should be reimbursed the whole cost of the car, whatever that cost is. That much it seems you already know.

As for the value of your vehicle, I think if it was repaired entirely, and runs absolutely fine and had no problems, except that it had a "salvage" title, I think fair market value can be 80-90% of the retail value of a non-salvage vehicle. I am guessing at this number since most often you see such cars for sale at about this price.

My uncle (on my wife's side) has an auto body business that does this type of work specifically...he buys salvage cars whose damage is pretty much structural (no engine damage) and repairs them, and then resells them for cheaper than a non-salvage title vehicle. Again I don't know the prices, but I think he can get as much as 80-90% of that non-salvage value.

One day, he had one vehicle (a fully repaired salvage-titled BMW X5 4.6is) stolen from him (in other words, total loss) after it was fully repaired. I don't know what he got for it, but I think he probably got a fair return from the insurance company.

If State Farm doesn't pay you enough to pay off the car, you can always go to court and sue to recover the rest from the defendant. I am not sure what else you can do if they do indeed lowball you, but I really don't think you can do much other than sue for damages.

Good luck and speedy recovery.

You can also try and look up on eBay what a car similar to yours may be going for.

Answer 2

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RE :How much of a lower value is a salvaged vehicle really worth?
OK ok I was stupid and bought a salvaged vehicle. I had the car looked at and everything was fine and I bought it. It was my dream color (yellow), convertible, and was even automatic so i felt like i just had to have it :(

anyways.. it got t-boned. The lady admited fault to the cops (she was on muscle relaxtants and ran a red light) and her insurance state farm said theyd fix my car. Just found out they transferred my claim to the total loss department and that someone will be calling me in the next few days to talk about it.

I cant sleep because with the car already being a salvaged vehicle.. about what percent do they pay of the retail value?
I owe a little under 10K at the bank, and the retail on Kelly for a non salvaged 2003 ford mustang convertible is 15K and private party value is 12500. Will at least my loan be paid off? About what can i expect they will offer? Will they try to low ball me and not give me what its worth? Will I have to argue with them?
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Answer 3

Here's the real deal: ACV (actual cash value) of ANYTHING is what the buying public will pay for it. ACV is what State Farm is going to offer you. Why did you buy a salvaged vehicle? Answer: because you got a good deal on it. Is it worth as much as a vehicle with a 'clean' title -- no way. An experiment: two cars on a used car lot, both have the same sale price. Both cars are identical with exact colors, mileage, options, etc. One vehicle has a 'salvage' title, the other doesn't. Which one would YOU buy? State Farm has no interest in 'low balling' their offer. They have a very good track record for fair claims practices. Just be prepared to prove any argument you give them about prices with hard data.

Answer 4

I don't think your loan is going to be paid off. Insurance companies pay actual cash value, not blue book. It's what that vehicle would sell for in the marketplace, essentially. If it has a salvage title then that value is going to be way low! I don't think that you'll get more than what they could have sold it to a salvage yard for when it was first damaged. If you never got a clean title, you'll have to talk to the adjuster about the total loss. If you've done things to the vehicle to get it out of salvage condition then maybe you'll have some room. Sorry about that!

Answer 5

There is nothing wrong with buying a car with a salvaged title, as long as the vehicle has gone through the proper inspections after the work is done and is considered safe for the road.

As far as paying off your loan, Try not to allow Her insurance company to push you into taking less than the car loan. You wouldn't be in this situation if their client wasn't on muscle relaxants. If Her insurance company does not pay off the loan completely you can go after Her personally, small claims Court, have Her pay the rest of the loan. Your most likely not going to come out ahead in this deal but your not hurt and your loan will be paid and you can start over.

Answer 6

NADA Value of 2003 Ford Mustang Convertible (not taking mileage or options into play)- $13,225

Amount salvage title takes off- 50% generally

Amount you will get: around 7,500

And.. just to clear things up.. the at fault party only owes you actual cash value of your vehicle so dont bother taking them to court for the rest. It's not their fault you paid too much for your vehicle (not being mean- just giving you a honest answer.)

And no- they will not try to low ball you and there is really no point in arguing. Actual Cash Value is what it is- non negiotable. If you can't agree with them they will simply tell you to go through your own insurance then.

Answer 7

Pickle015 has pretty much nailed it.

I'd add that since you are dealing with the insurance company of the at-fault driver instead of your own you are in a somewhat better bargaining position to at least get enough to pay off your loan.

If you can track down any information from the person or dealer you bought the car from in the first place as to what the original damage was and how it was repaired you might be able to strengthen your position a bit. (Though if that indicates that the repairs might have been less than perfect, keep that under your had.)

Answer 8

You're fooling your self should you bear in mind this vehicle anyplace just about "techically" nonetheless new. Most salvage autos opt for 50% lower than a similar vehicle that hasn't been totaled.

Answer 9

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RE :How much of a lower value is a salvaged vehicle really worth?
OK ok I was stupid and bought a salvaged vehicle. I had the car looked at and everything was fine and I bought it. It was my dream color (yellow), convertible, and was even automatic so i felt like i just had to have it :(

anyways.. it got t-boned. The lady admited fault to the cops (she was on muscle relaxtants and ran a red light) and her insurance state farm said theyd fix my car. Just found out they transferred my claim to the total loss department and that someone will be calling me in the next few days to talk about it.

I cant sleep because with the car already being a salvaged vehicle.. about what percent do they pay of the retail value?
I owe a little under 10K at the bank, and the retail on Kelly for a non salvaged 2003 ford mustang convertible is 15K and private party value is 12500. Will at least my loan be paid off? About what can i expect they will offer? Will they try to low ball me and not give me what its worth? Will I have to argue with them?
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Answer 10

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