QuestionHi there, I recently looked at a '02 Honda Civic LX Coupe. It has 62k mi on it and was selling for $7000 which is a significant amount cheaper than the KBB price. When I asked why he was selling it for so cheap he said it's because it has a salvage title but that the only parts needing to be replaced were the front bumper and headlights. The car ran and looked great, but does a salvage title for just a bumper and headlights make sense? What other concerns should I have when looking at salvage title cars? Thanks for any info.
AnswerWell it sounds as though you would like to buy this car, so I hate to burst your bubble but here it goes. The bank that I use for financing would only finance about $3000 (50% of NADA Loan) on this car, and that is if you have good credit, or a really good relationship with the bank. It is possible to only wreck the front end, and total it enough to get a salvage title, but I find it extremely hard to believe that just a bumper and headlights would total a car, I believe there was more damage than implied, and there is no chance of me giving anywhere near that price for the car. It may have been fixed right, drive right, and be really clean, but fact of the matter is that most financial institution could not care less about how it was fixed, it is a salvage title, and is not worth much in their views, and nothing else matters. You may be in a position where you can pay cash, and dont need financing, but when the day comes you want to sell it, it will only be worth a small amount, and you will lose a lot of $$$. I would walk away from this deal, if you offer them about $2500 to $3000 they will probably be insulted, especially if they really believe it was worth $7000, I mean if the car was good title and clean, I still think $6000 would be all over it, they are absolutely out of their mind to think that car is worth $7000.00. Hope this is helpful.
