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Rebuilt or Salvage Title


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I sold a car to a new car dealer with a salvage title. The dealer didn't get the title until 2 weeks later when I gave it to them. The dealer said that they didn't know it was a salvage title. Now the dealer wants me to pay 2,000 more dollars to cover this.Is this allowed? Where did they come up with this amount? Kelly Blue Book doesn't give any difference on the price of a used car,if it has a salvage title or not.

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A salvage title always devalues a car.<P>Don't blame the dealer, the assumption was that you had a good general title for the car, not a salvage title. The price guides won't cover that title, as the car once had (or still has) only salvage value.<p>[This message has been edited by YellowLark (edited 12-06-2000).]

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In my opinion, the same principle applies to the dealer who made the deal as it does to a buyer... "caveat emptor". Shame on the dealership for not checking things out a bit more closely. Once the deal is done, it is done. You can bet if the shoe was on the other foot that's what they'd tell you.<P>I'd call my attorney.<P>Matthew

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Guest John Chapman

John Gold and 67GS,<P>For the good of us all, the rule of law prevails over opinion (unless you happen to be a sitting judge)... I wonder if they're listening in Florida...<P>YellowLark is correct. From your statements, the dealer apparently made the offer based on the reasonable expectation that the car had a good title (no encumbrances or adverse characterizations) and that you were offering the car for trade in good faith. I'm amazed that they waited two weeks for the title. <P>The differential in value of $2000 may be up for negotiation, but if the dealer had a reasonable expectation of on putting the car on his used car lot and now has to wholesale a salvage title car instead, you could reach a $2K difference easily. Basically, a salvage title car is worthless on the used car market beyond its scrapage value. In some states, you can't sell, insure or operate a salvage title car. There is a huge underground business in 'laundering' salvage title vehicles for this reason, but that's a separate story.<P>John, I see you left with two reasonable choices:<P>- Negotiate on the $2K to reduce it and pay the agreed amount<P>- Negate the deal, return the new car and take back the old one, if the dealer is willing<P>If you knowingly (through deceit or culpable negligence) traded a salvage title car without disclosing it, and the dealer pursues legal remedy, you're toast.<P>Addressing 67GS's comments, in cases like this there are clear remedies (variable by state) in law for both the consumer and the dealer. In this instance, if the seller (owner or dealer) knowingly presented a defective title car for sale/trade as a good title car, it is fraud and can easily be prosecuted. California is hell on these dealers. Usually the dealer is held to a higher standard of performance because he is considered to have expert knowledge. With the widespread availability of title checking/VIN history services it's getting pretty easy to catch salvage/rental/buyback cars. <P>Both the dealer and the consumer have recourse for hidden defects (physical or statutory) discovered after the fact of sale. So, in effect, the deal is done, but it is undoable.<P>Caveat Emptor is a good way to approach any deal, but in our complex society of rules, it?s nice to know we have some help out there.<P>Cheers,<BR>John<BR><P>------------------<BR>John Chapman<BR>BCA 35894<BR>1965 Skylark Convertible (Some Assembly Required)<BR> jmchapman@aol.com

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  • 2 weeks later...

Here in Florida, a salvage title can mean the car was stolen, recovered, scraped by the insurance company and bought by someone who rebuids it and then sells it. The car has a new tag on the door stating the car as a salvaged one.

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  • 2 weeks later...

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