Car Buying Advice
Step-by-step: Buying a used car
- Choosing a used car
- Avoiding a lemon
- Buying a used car
In this section
- How to spot a lemon
- Inspecting a used car
- Beware of flood cars
- The problem of rebuilt wrecks
The problem of rebuilt wrecks
Repairing and reselling “salvage” vehicles, ones written off by insurance companies as a total loss, is a very large business. About one million salvage vehicles are returned to the road each year, according to the National Association of Consumer Advocates (NACA), an organization of attorneys who represent consumers victimized by fraudulent or abusive business practices.
While it is possible to restore such a vehicle to good condition, rebuilders often cut costs to make a profit. Even if they try to do a good job, no one can predict the crashworthiness and mechanical reliability of those vehicles.
Similar issues affect the estimated 60,000 vehicles that are repurchased by manufacturers under state lemon-law programs. Many are resold at retail. Lemons usually don’t have the severe problems you’d expect with salvage cars. But it can be very difficult verifying that the chronic defect has been corrected.
State laws differ, sometimes considerable, on what they define as salvage vehicles and on how—or eve if—those vehicles need to be inspected and buyers informed before resale.
Many states require a “brand” to be printed on the vehicle’s title document, but the size and lettering varies from state to state. Call you Department of Motor Vehicles office to find out how to spot a salvage title in your own state.
Consumer Reports fond that these differing standards have led to the interstate trafficking of salvage and lemon vehicles, a practice in which titles are “washed” through the more lenient states to remove signs of dubious history. Even if titles of former lemon and salvage vehicles are conspicuously branded, those who buy a used car from a dealership often never see the previous title.
If you’ve unknowingly purchased a salvage vehicle or recycled lemon, contact your state consumer and motor vehicle officials. You also can check with NACA (www.naca.net), which keeps a list of lawyers who specialize in such cases.
Before you buy, check to see what protection your state offers and what’s required of the seller. New York and New Jersey, for instance, have lemon laws for used cars. In addition, the Federal Trade Commission requires used-car dealers to post a buyer’s guide on every used car, which details in writing all warranty information. Buyers should keep this after the sale.
