Minor Crashes result in total loss?

[West1]

I am looking at getting a Clarity. I ran across two rebuilt / salvage titles cars. I ran the VIN numbers and got the auction prices and damage photos. Some of the cars look to only need minor repairs but are being totaled by the insurance company.

2018 Base model with 11500 miles sold for $6400. I've seen others with more damage sell for 8-9k.

I assume the only replacement parts are Honda as no generic parts would be on the market for a low volume sales car. The Honda only parts would be more expensive. Are the parts also on short supply? Maybe Honda has a several week wait for parts?


What other reasons are these cars being totaled out?
Perhaps low demand from the buyers who would rather buy an Accord or Civic instead of the unknown Clarity.


To see the crash photos and sales prices.
https://en.bidfax.info/

 

[Landshark]

What other reasons are these cars being totaled out?

The cost of repairs exceeds the value of the vehicle.

Are you able to determine what would need to be repaired and replaced on the damaged car in the photo? One member recently had to have the entire wire harness replaced because a faulty wire caused a malfunction in one of the daytime running lights. It was done under warranty at no cost to the owner. Otherwise, it would have been a $5,000-6000 repair. Knowing that, I’d say it is entirely possible that the damaged car may need a new harness. One that won’t be covered under warranty.

 

[fotomoto]

@craze1cars will have some thoughts on this.

Unless you have a dealers license, most auctions will tack on a lot of extra fees (thousands of dollars) to the winning total. BTDT. Even vehicles in operating condition (hail, theft, repo, etc) can not be driven off the lot and have to be shipped. Read all the fine print. Prices are very high right now so buying one to flip isn’t very promising. Some vehicles have some of the remove parts stored in the vehicle. Knowing that and which parts are included can be the difference between a deal or a nightmare. Special headlights can be super expensive. A damaged condenser could mean the battery overheated (or not). It’s a gamble. Do you have the tools and the DIY ability to handle most or all repairs? How much will need to be farmed out (painting, alignments, etc)?

Salvage title vehicles lose any factory warranties that were still in effect. They do qualify for safety recalls if they are still legally on the road.

GOOD LUCK!

 

[West1]

The cost of repairs exceeds the value of the vehicle.

.

The seller has two rebuilt Clarity cars along with others. Some businesses specialize in careful selection of auction salvage cars. He is asking more than I would pay for a salvage title and the black paint is a double negative for me. I just was amazed at how many, nice appearing light damaged, clarities were totaled by the insurance company.

I watched a online auction this morning for a 2018 Touring with 2000 miles sell for $8900. It was less damaged that the above photos.

Fotomot0 thanks for the inside information.

 

[Random.Clarity]

The frame is bent on that one. Hard to see unless you really look at the underhood and front end shots. Easier to see if you look at the front driver side wheel and compare the fender clearance on front vs back of the wheel.

So what it then comes down to is what corners to cut in order to make a profit? Should that bent frame rail have been replaced but was instead bent back into shape??? Did they pound most of that hood dent out and just put bondo on top???

I have heard the salvage resale model can be done properly without cutting corners when sellers specialize in specific models or makes.

 

[craze1cars]

Without seeing the actual damage estimate, it’s impossible to know “why” the insurance company chose to total the cars. But I can guarantee it’s a mathematical formula where they compare cost of repairs, vs cost of purchasing the car and selling the salvage.

I’m unclear what your objective is. Buy/fix/sell for profit? Buy/fix/keep for a discount over buying a new or used one? Whichever it is, I have to assume that you are not in the auto body repair business, or you wouldn’t be asking these questions on this forum. And if so, it means you likely need to pay retail for repair of whatever car you buy. If true, you are very much behind the 8 ball and I urge EXTREME caution or you may spend a heck of a lot of money in comparison to just buying a new or unwrecked used car.

I don’t recommend you buy a wrecked car to rebuild without having 100% confidence in your absolute final repair price, before you make the car purchase. Pictures tell nothing. Even in person professional estimates are questionable at best, and never a guarantee of final repair price.

 

[West1]

Without seeing the actual damage estimate

yet

The frame is bent on that one.

.

 

[craze1cars]

I guess I now see a possible 3rd objective…which I’m still unclear of….is your goal to buy a car that’s been rebuilt by someone else, to save money?

All scenarios are viable. Not sure how much experience you have with auto body and structural repair assessment, but if this is your plan, I’d be hiring an experienced appraiser to go over the car with a fine tooth comb, on a lift, to determine quality of repairs, extent of structural damage that has been repaired, and methods utilized.

I do not recommend a layperson trust his/her own research and eyeballs on something like this. The eyes simply don’t even know where to look, or what to look for….

 

[Random.Clarity]

is your goal to buy a car that’s been rebuilt by someone else, to save money?

This. And, as you said, one would certainly want to pay a body shop to inspect anything you would want to buy.

I would not recommend buying a newer vehicle as a salvage for several reasons. First, manufacturer warranty is void on a salvage title. Second, few banks would finance a salvage title. Third, depending on your insurance co. you may not be able to obtain comp/collision on a salvage title.

 

[West1]

My objective was to learn why such small appearance in damage resulted in total loss. Is there features about the car that makes it so easy to damage or costly to repair? As mentioned above, the frame could be slightly bent. Bent enough to warrant insurance claim. Leaving room for a repair shop to buy and flip the car after a shotty repair.

Know I want to check insurance rates. If the car is a known high repair cost then that will factor into monthly car insurance.

I test drove one this weekend. I am a early adopter technology of Honda having purchase the first hybrid back in 2000. The Clarity did not disappoint me. It is now where near as quick as the i3, but the Clarity was quick enough. The interior is Acura quality and design. My only two faults is the regen setting should stay at where I select it (four bar regen) and the rear seats should be a full pass through. The bright sunny day was washing out the dash gauges, which tinted windows would fix.

I reviewed the trip information. Car had 40,050 miles at 199 eMPG. With just the last 50 miles showing 32eMPG. So the first owner used the car in nearly all EV mode. Did the first owner even use up a tank of gas?

I am in no hurry, so I will wait for a deal on a CPO.

 

[ENirogus]

Insurance companies love to total cars.
If they agree to fix a vehicle, they are stuck with it, so if there is hidden damage found halfway thru, they pay.
IF they total it, they know exactly what they will pay, then they get to keep the car and sell it at auction
20k car with 10k damage, might creep to 15k if they are unlucky. Insurance company is out 15k.
15k damage they total the car, then sell it for 8k write a check for 20k. Insurance company is out 12k.

 

[insightman]

My only two faults is the regen setting should stay at where I select it (four bar regen) and the rear seats should be a full pass through.

If you select the Clarity PHEV's Sport Mode, the regen settings don't reset after a short time. The Clarity PHEV inherits the body of the Clarity Fuel Cell car. The structure that prevents a more generous trunk pass-through was probably necessary to protect the hydrogen tanks in an accident.