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Used Cars With Dubious Histories
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Written by Charles N. Oliphant   
Tuesday, 17 February 2009
Car Buying

Most people assume that utterly wrecked cars--the kind that insurance companies declare a total loss--are sold to junkyards for scrap. Unfortunately, that's not always true: About a million such automobiles are rebuilt each year and resold as used cars--often without the buyer's knowledge.

Even though salvaged or rebuilt cars often sell for next to nothing, we say never buy one, no matter the price. They're often unsafe to drive, and it's extremely difficult, even for a professional, to determine how good a job the rebuilder did.

Of course, that advice presumes you know the car has been salvaged, which isn't always the case. Most states require that these cars (and those that have suffered flood damage) have a warning such as SALVAGE or REBUILT VEHICLE stamped permanently on their titles. But used-car rebuilders and resellers often launder titles by moving cars from state to state, a practice that has led some members of Congress to push for federal legislation to close the loopholes. Current proposals are tied up in squabbling over (among other things) how much damage--60% of a car's value? 75%?--will define a car as a salvage. A final measure isn't likely until after this year's election. Meanwhile, here's how to be sure you're not buying someone else's wreck.

Check the title. Even if a title's been laundered, you can check state and other databases of title histories by vehicle identification number, or VIN, which in most cases will tell you if a car has ever been branded a salvage. For $19.95, a company called CarFax (888-422-7329; www.carfax.com) will do all the legwork on an unlimited number of VINs for up to 60 days.

Look for the telltale signs. If an insurance company illegally sells a car without registering the VIN as a salvage, your next best defense is common sense. A suspiciously low price compared with the car's Kelley Blue Book value, which you can look up at www.kbb.com, should put you on alert. After that, check for paint that doesn't match, particularly in and around the trunk and under the hood, and for exterior paint that's rough to the touch.

Hire a mechanic. For between $75 and $100, most auto mechanics will inspect a used car for the kind of major body work or frame damage that few drivers can detect.

Avoid "curbstoners." According to CarFax spokesman Larry Gamache, suspect cars are most often sold by so-called curbstoners--small operators who line up a few used cars along the edge of a mall parking lot or roadway.
Last Updated ( Tuesday, 17 February 2009 )