Expert: William Forster - 7/20/2007

Question
Hi there, I am considering buying a 2004 VW Jetta GLS that currently has a salvage title.  The vehicle was involved in an accident where the front bumper and rear right fender were damaged.  The repair shop that is selling the vehicle says that there was no damage to the engine, it has approximately 300 miles on it.  The owner says that the price at the salvage auction was $5,400.  He is now offering 13,000.  

Do you have any advice on buying salvage cars? How do you adequately price a rebuilt car?

Answer
To total this 2004 Jetta, it had to be totally BASHED in the front end, and it probably also had an air bag deployment. If the car had a book value of say, 15000 when it was totaled, it had about 12000 worth of damage. A healthy chunk, to be sure. You have to darn near hit a frozen elephant to deploy bags any more. How does a nearly 4 year old car only have 300 miles? Or, 3000 miles, in case you made a typo? Did it set around a salvage yard lot for three years before this guy bought it? Or was the dash cluster replaced? I would see if a Volkswagen dealership can get into the computer, and check the hour meter, and tell you if they think the hours are consistent with the mileage. It sounds very suspect to me. Book value of vehicles upon trade in are about 50-60% of high book. You need to have an accurate book value of an un-totaled Jetted with similar miles. You also need a referral from someone who has had a car fixed at his shop, and were happy with his work. If you purchase the car, have him guarantee, in writing, all his work, and any possible future problems related to the collision repair. That means you have see him first with any troubles, not go somewhere else and send him a bill every time the car makes a squeak. Rebuilt cars are never included in factory recalls, and have no factory warranty. They are not even eligible for any post- warranty companies warranty. The factory is under no obligation to fix any problems, whatsoever, ever. The car was sold as scrap. Keep this in mind when buying this car. YOU will be liable for all repairs, regardless of the low miles. Bill