How Much Does a "Salvage" Title Affect Value?

[ol' yeller]

I have an opportunity to buy a 90 Reatta Convertible from a friend. It has a "salvage" title. According to my friend the damage wasn't structural, only enough cosmetic damage to total the car. It looks very nice and it has around 90K on it. It does have a modified trunk lid from a coupe but unless you know what to look for, it isn't obvious. What should this go for? He is currently asking $8K with no takers. It happens to be my favorite color, Maui Blue with a white top. I just don't want to overpay for something that I may get burnt on when I go to sell it in the future. I owned a '90 coupe before and know what to look for in these Reattas. I want to be fair as he is a good friend but I also don't want to pay top dollar for a car with a damaged title. I am not looking to make a quick buck on a "rare" car. I know how Reattas are percieved in the marketplace. What do you think? Thanks.

[Guest Ranger]

Just as you're having questions now, who ever thinks about buying it in the future will have the very same questions. I've been to several dealers auctions, they won't touch a car with a salvage title. That being said, there's nothing like driving a nice Reatta convert., if you're going to hold on to it for awhile and get it for a reasonable price, go for it. I'd make sure to get it on a rack and inspect it throughly, check body seams, and above all, get in another car, have your buddy drive down the road with you following, look for "dog tracking". Have a good time!

Jim

[Howard]

As Jim pointed out in the above posts, dealer auctions will not touch a car with a salvage title. The same is true for a dealership. I know, I worked at them for almost 25 years. If you plan to buy this car, make sure that this is the car you want to own for a very long time. Understand when it comes time to sell it, you will have more trouble doing so than a car with a "good" title. I would also check with your insurance company. If you plan to have the car insured for anything other than your state's needed coverage, be sure your insurance company will underwrite the additional coverage. Insurance companies as a rule will not insure a car with comp/collision that has a salvage title. I have heard of some instances that they will not provide any coverage. Before handing over the money, make sure you can get your new purchase insured.

[Jim]

I wouldn't be too worried about the salvage title if you are going to keep the car. When the cars are 10 years old or less a salvage title is important but I don't think so on a collector vehicle. $ 8K is too much now days for a '90 convertible with 90K on it. In the last few years I sold 3 convertibles with less miles for less than $ 8K

The coupes and the convertibles used the exact same trunk lid P/N 20725836. Now if the trunk lid has been modified, and the damage had been in the rear, I would be worried.

[Richard S]

I recently saveda 90 Convert with a salvage title from the wrecker. Let me tell you to look very very carefully at this thing before you get into it. What may look decent on the outside, may be a nightmare underneath. Put it on a lift and look in every cranny from underneath. Make sure when you test drive, you have someone follow you to make sure the car does not "crab", a sign of a bent frame. Do a lot of tapping to get an idea of what's bondo and what isn't.

[Rawja]

Regardless of the actual condition of the vehicle, the resale value of a car with a salvage title is severely diminished.

That said, if you want the car by all means buy and enjoy it. Just don't expect it to worth anything when you're through with it...which when you think about it could be fairly liberating...no worries about depreciation, just drive and enjoy the car on it's own merits which is how it should be (IMO).

[KDirk]

I'll concur with Roger's comments above, and add the following. I would not buy a salvage car with the intent to resell it, whether immediately or a few years later. Now, with that in mind, if the car is decent and doesn't show signs of non-correctable damage (like dog tracking) or endless gremlins from whatever event got it a salvage title to begin with, it may be a good deal for a drivable, inexpensive car.

If you get a few good years out of it, great. In the case of a car like the Reatta, there will be a market for parts taken from junked cars for some time to come. This is your only eventual path to legitimate disposition of the vehicle, and maybe make some $ in the process. When it is no longer usable as a daily driver, sell what good, usable parts remain.

Body panels (those not damaged or poorly repaired) Glass and interior trim pieces, and the like are items that are and will continue to be in demand by other Reatta owners like myself to keep ours on the road as long as possible. As well, if you own or plan on owning another Reatta and can store a parts car, keep the salvage vehicle for your own use as a parts supply.

Other than that, the car has a pretty limited future with a salvage title. It is unrealistic to think that the car can be sold in another few years for anything other than salvage/parts value, since the age of these cars has already made their value pretty low. It will likely take at least another decade for Reatta prices to appreciate noticeably as they start to become officially recognized as collectibles or classics, assuming this ever happens.

Put another way, the average Reatta coupe (convertibles are a bit different due to scarcity) has now lost 75-90% of its value versus sticker price when new figuring that one sells for $2700-$5000 in average condition/mileage for it's age. A salvage title car will not be considered by the typical used car buyer unwilling to gamble unless it can be bought really cheap which takes out much of the risk on their part.

KDirk

[ol' yeller]

Great points, everyone. My question doesn't have to do with future value of the car, I am asking what is it worth now? Given that I will probably keep and drive the wheels off it, how much should I pay for it today? I haven't even contacted my friend yet about my interest because I don't want to create false hope for him. I am struggling over the salvage title. I have seen the car at a couple of club events and it looks very nice. My friend bought the car from the person who repaired the damage on speculation. Now he is dealing with a decided lack of interest. I will check out the car completely before making an offer (if I make an offer) but I wanted to get your opinions of what it is worth. I was figuring around $4-5K. Am I too high? I suspect any less and he won't want to sell. If it is a $2,500 car then it is what it is and I would pass on it as I don't want to overpay. If $4-5K buys me a similar mileage Reatta convertible without salavage title, I'd be better off looking for one of those. I love the Maui blue. Thanks.

[Guest steveskyhawk]

I don't think 4-5 K will get you near a Reatta convertible UNLESS it was wrecked. JMHO

[Guest F14CRAZY]

Actually, we've bought two Reatta convertibles separately for around $3k each. Both had high miles but no major mechanical issues or body damage and clear titles.

I'd say the salvage title Reatta would be worth $4-5k. Is it "rebuildable" in your state?

[ol' yeller]

OK, this is what I need to know. If $4,500 is too low and $8,500 is too much, what is a fair price for the car given a salvage title. To answer a previous question, I think here in WA you get a "Rebuilt" title when the work is complete and inspected by the State Patrol after the car is "totaled" by the insurance company. The title will say "Rebuilt" but everyone calls it a salvage title. The car has been well repaired cosmetically but I haven't yet gotten close enough to inspect it prior to making an offer. For this exercise, assume the car has been fixed correctly and the only defect it has is the word "Rebuilt" on the title. If I find otherwise, I wouldn't be interested. What is a "Rebuilt" '90 Reatta convertible with 90K miles worth? What is a non salvage similar convertible worth? Again, I am only asking about purchase price today, not future "rare" car appreciation. Thanks.

[Richard S]

Unfortunately, Greg, salvage title Reattas are too few for there to be a rule on their value. They thus succumb to the general market principle that it is worth whatever somone is willing to pay for it. And, again, because we are talking about such a small sample, the "predicted" value is easily skewed by unique factors, such as a strong desire for a particular color, relative rarity of any Reattas in particular locales, the specific event that resulted in the salvage title, and the particular quality of the repair work done on that car. Personally, and without any scientific basis, I would value the car by comparing it to similar clean titles, and then offer 70% of that to reward yourself for being one of the few buyers not scared off by the clouded title.