• Subscribe to a Magazine
Item Posts    Sort Order

value of car

 
mowman
New User
Posts: 20
Joined: 03/09
Posted: 01/18/12 10:44 AM

I am looking at a 2010 base mustang 6 automatic with only 6000+ miles on it.  It had some front damage, and had the l.f. headlight , fender, and the hood replaced.  Looks like it was never damaged.  BUT the guy who owns it now bought it from the insurance co. and now it has a salvage title.  What I am trying to figure out is how much should be deducted from the value for that???  Anybody have an educated opinion?  

Post Reply
jlg2002
Guru
Posts: 1410
Joined: 03/08
Posted: 01/18/12 01:53 PM

Hi Mowman - welcome to the forum.  I had a similar dilemma and NADA Guide(a competitor of Kelley Blue Book) which is utilized by the financial industry as a vehicle pricing guide, suggests anywhere from 10-40% of the value is lost as a result of being a salvage title.  
In Calif., a lender won't lend against a salvage title due to the fact that insurance companies won't issue comprehensive or collision insurance to a salvage vehicle and all lenders require those coverages for a loan.  

Post Reply
mowman
New User
Posts: 20
Joined: 03/09
Posted: 01/19/12 09:35 AM

Yes, that is kinda what I figured, but how do you determine whether it is 10% 0r 40%.  I mean on a $20000 car (nada value) the difference between 10 and 40 % is a lot.    Is it if you can prove that the damage was minor it would be toward the lower side?  Insurance doesn't bother me, as I just put liability on it anyway.  The other thing to take into consideration is that ALL factory warranty is gone according to my local ford dealer.  

Post Reply
jlg2002
Guru
Posts: 1410
Joined: 03/08
Posted: 01/19/12 01:12 PM

I wasn't aware Ford would void the warranty but it makes sense.  As far as 10-40%, there's no solid rule i can find. I would try to negotiate more towards the 40 end as the result of the salvage is going to cost you more (e.g. no factory warranty).  

Post Reply
Bill T.
Enthusiast
Posts: 283
Joined: 04/08
Posted: 01/19/12 02:16 PM

How could a car with minor damage end up with a salvage title?  Insurance companies usually end up with the car if it has been totalled. I would investigate further, perhaps have a body shop look at it.  
Bill

1966 coupe
1995 Cobra R

Post Reply