Stolen Recovered auction car
Discussion
Hello,
Need some advice please. I have found a car at auction - stolen recovered minimal bumper damage. New car, minimal miles - literally 1k. Only 1 key. Whet are the pitfalls in terms of buying, insuring and reselling? No idea yet if it's recorded - so scenarios on both appreciated.
What would expect resale value to drop by?
Thank you!
L
Need some advice please. I have found a car at auction - stolen recovered minimal bumper damage. New car, minimal miles - literally 1k. Only 1 key. Whet are the pitfalls in terms of buying, insuring and reselling? No idea yet if it's recorded - so scenarios on both appreciated.
What would expect resale value to drop by?
Thank you!
L
I would first and foremost once satisfied that it is as legitimate as you think,then I would get the locks changed as you only have one key there is the distinct possibility that someone still has the other key and might trace where you live and relieve you of your motor through the night with the spare. This has happened a few times now up my way more so with second hand cars sold on with one key the spare sold on for up to £1000 well worth thinking about.
bebe said:
Hello,
Need some advice please. I have found a car at auction - stolen recovered minimal bumper damage. New car, minimal miles - literally 1k. Only 1 key. Whet are the pitfalls in terms of buying, insuring and reselling? No idea yet if it's recorded - so scenarios on both appreciated.
What would expect resale value to drop by?
Thank you!
L
I don't know where you have found it, but if it's online, then beware, if its too good to be true......Need some advice please. I have found a car at auction - stolen recovered minimal bumper damage. New car, minimal miles - literally 1k. Only 1 key. Whet are the pitfalls in terms of buying, insuring and reselling? No idea yet if it's recorded - so scenarios on both appreciated.
What would expect resale value to drop by?
Thank you!
L
There are a lot of cars coming through the online motor insurance salvage auction sites (eg Motorhog and Copart) that are almost new and have had Gap insurance replacements. Frequently, these are minimally damaged, but the owner has wanted a new one.
Gap insurance will pay out if the car is damaged when stolen/recovered.
They are often not on the VCAR register because they are minimally damaged and not strictly write-offs, so their value is not reduced at all. These cars are very attractive to motor traders if they are not on the register, because they are sold with no necessity to declare the history. However, if they do get put on the register, they are likely to be CAT N and there is a legal requirement to state this on any advert when you come to sell the vehicle.
Consequently, there is an argument that you are safer buying an ultra low mileage car from salvage than buying from a dealer, because you know what the damage was! I'm being facetious, but when you consider that the UK motor salvage online auctions clear about 10,000 vehicles every week, you really don't know the history of any used car...especially when you buy from a trader.
If it's on VCAR as a CAT N (non structural) and it's almost brand new, it might be worth 20% less than the equivalent almost new car that has not got a registered history; this depends greatly on what it is. The main issue will be that there are fewer potential buyers.
Motor insurance does not cost any more for cars on the register, but their basic value is lower, so expect a lower pay out in the event of a claim.
I've bought quite a few vehicles from salvage over the years, most recently a Mitsubishi Shogun. It is a CAT N because someone rolled into the back corner damaging the plastic bumper and breaking the tail light. I straightened the bumper by hand after heating it with a hot air gun and fitted a new tail light. £18, repaired: less than half price tow barge.
Are you buying it direct from one of the salvage clearance sites, or from a trader that has bought it from salvage and is now selling it one for a profit?
One thing I have always found useful is to get a full suspension geometry/alignment done. Most cars can be improved upon, no matter what the history, but if it's been stolen recovered, you might find that it's done some off-roading or high speed sleeping Policemen. It's nice to know that it's all straight, even if just for peace of mind.
Gap insurance will pay out if the car is damaged when stolen/recovered.
They are often not on the VCAR register because they are minimally damaged and not strictly write-offs, so their value is not reduced at all. These cars are very attractive to motor traders if they are not on the register, because they are sold with no necessity to declare the history. However, if they do get put on the register, they are likely to be CAT N and there is a legal requirement to state this on any advert when you come to sell the vehicle.
Consequently, there is an argument that you are safer buying an ultra low mileage car from salvage than buying from a dealer, because you know what the damage was! I'm being facetious, but when you consider that the UK motor salvage online auctions clear about 10,000 vehicles every week, you really don't know the history of any used car...especially when you buy from a trader.
If it's on VCAR as a CAT N (non structural) and it's almost brand new, it might be worth 20% less than the equivalent almost new car that has not got a registered history; this depends greatly on what it is. The main issue will be that there are fewer potential buyers.
Motor insurance does not cost any more for cars on the register, but their basic value is lower, so expect a lower pay out in the event of a claim.
I've bought quite a few vehicles from salvage over the years, most recently a Mitsubishi Shogun. It is a CAT N because someone rolled into the back corner damaging the plastic bumper and breaking the tail light. I straightened the bumper by hand after heating it with a hot air gun and fitted a new tail light. £18, repaired: less than half price tow barge.
Are you buying it direct from one of the salvage clearance sites, or from a trader that has bought it from salvage and is now selling it one for a profit?
One thing I have always found useful is to get a full suspension geometry/alignment done. Most cars can be improved upon, no matter what the history, but if it's been stolen recovered, you might find that it's done some off-roading or high speed sleeping Policemen. It's nice to know that it's all straight, even if just for peace of mind.
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