So who buys a $100k that has a branded title?

After reading Microbe's post about the possible flip McLaren, it got me thinking about what kind of car would be a good flip candidate that is a little more high end than the cars I've done in the past so far and am in the process of doing right now.

I was on coparts website just browsing and I ran across a "Flood Damaged" Maserati. And that makes me wonder. Who the heck buys a $100k car that has a flood damage branded title. I guess these are purely for parts? Seems a waste, but I can't think of anyone with that kind of cash to spend buying a car with a branded title. Hell I won't even touch a $2k car without a clean title.

So who buys these things?

Big yards/shops- ones with a network of connections in seemingly legit high end repair shops, who will then buy the parts at a discount but charge their customers full price for "new" parts.

You know, the same guys who buy stolen ones

Lots of people. Hell think of all the vintage ferrari's and other exotics that were totaled and rebuild before branded titles. Some of those are multi million dollar cars.

People in a different tax bracket.

the repair estimate is only 2800. probably needs the interior removed and cleaned. probably runs/drives fine but got wet inside. it obviously has power and working interior bits since the gps is on in the pics. i'd gamble at up to 45 if i had the cash to play with and it does run/drive with no water in the oily bits.

People with money and means to get the title cleaned.

Sometimes it isn't that hard to do, and doesn't take any nefarious actions.

I bought a Nighthawk with a Utah salvage title, turned in the Utah salvage title and an application for a Mass title and received a clean title in the mail.

That was over 15 years ago so YMMV.

Ask someone who restores pre-war Bugattis.

Maybe it's just me then, but a branded title or a carfax/autocheck that comes back with a title issues is a deal killer for me, especially on late model stuff.

I can understand on older cars that had a small production number and are considered classics that can overcome a branded title. But on a late model car I find it hard to think that someone who's looking for something like this is going to even consider a car with title issues.

There is at least one state with a process to get a clean title doing the work to make the car right - so you have a 100k car you have 45k-50k in - do the work, flip it for 95 and you had a good week. OTOH, maserati depreciation rates are fairly breathtaking. Hold it too long and the market will catch up with it.

IIRC quite a few Sandy cars ended up in NY with clean titles.

My miata had a rebuilt title and it never stopped be from enjoying it, insuring it with full coverage, and selling it.

Are there reasons to be concerned about branded titles? Sure. Dodgy fixs, stolen parts, unsafe vehicle...

But look at a Lotus Elise/Exige. If you crack the front clamshell, it's usually totaled. The frame can be in mint condition and the damage is only cosmetic.

My M5 has a salvage title. It's how I can own it. And it doesn't affect how the car drives at all.

Just scale that up to get your answer.

Well considering it's illegal to "wash" a title like that, I wouldn't be doing that on anything I flip.

But it is interesting to see others points of views on buying a car with a salvaged title. I wouldn't have an issue if I bought it and fixed it myself, know the repairs were done properly, but buying a salvage car already fixed still puts me off.

Edit: just watched the bidding on the Maserati I linked earlier, went all the way to $58k. Kinda high when clean title cars are on ebay for low 60's

Q: So who buys a $100k that has a branded title?

A: People with $100K.

In reply to t25torx:

FWIW, I agree with you, but I wouldn't touch a used Maserati for half that. They just depreciate too fast. If I had that amount of money to blow on a used Italian exotic, it has a prancing horse on the badge. It's just a matter of buying an older one.

t25torx wrote: So who buys these things?

People like me. I could care less that one of my Viper's was on its third motor and had clam replaced in a crash. I knew it up front and paid significantly less for the car, then drove the tires off it and sold it easier then a clean titled one because of the price.

Only thing is it can restrict your buying pool as they have to have cash. Heck I would buy a F40 if the price was right and it had a terrible history but a clean bill of health now. Their are car's that the title does not mean much; it's just a piece of paper showing you own the car and that it had a problem in the past.

Now flood cars are a different matter, those will never be right ever. Even non saltwater flood cars. I shudder, nope, nope, nope.

Flood damage is a completely different kettle of fish compared to rebuilt wrecks. It isn't distilled water going into the car, it's going to be full of grit and that grit will wreck everything inside the car with moving parts since they are usually not sealed. Control cables, electric motors, anything that slides or pivots... All get damaged. Not immediately, but over time as the grit wears away bearings and liners and commutators and such.

I had a customer with an ex flood car with a clean title. It was heartbreaking to see all of the failures she kept having, but she refused to sell the car, just keep fixing it keep fixing it. Which isn't really "repairing" as much as it is "working on it" because it won't ever really be fixed. Pull interior panels down and there'd be fine grit stuck to everything...

Insurance companies almost always total a car that's been flooded. There are limited exceptions, but in general, if it's in the drink, it's totaled. Potential for long term issues is just way too high.

I love me a Maserati and that blue is excellent. I also have no issue with a salvage title if I am going to keep the car for a few years, but...

here is the same year S coupe with 20k miles and a clean title for $17,500 more. the salvage title should offer a bigger discount then that since I know I could get a few $$ off the dealer selling the clean title one and I spent all of 30 seconds looking for one for sale.

http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?ownerId=1387305&searchRadius=0&listingId=413717147

Thanks for the input guys. I guess I've just been a title snob. I always figured it was harder to sell one with that had been branded. I guess I would just have to expect the lower resale and bear that in mind when purchasing.

I need to add something because you are thinking of going upmarket.

If you are not limited on how many cars you can sell stick to the low-middle Japanese stuff. If I could get a reliable supply of Camry's, Civic's and RX300's at say 15% under final sales price I would make money hand over fist over the high end stuff. I could sell an automatic Camry a day in San Diego and reconditioning has very few things to bite you.

wearymicrobe wrote: I need to add something because you are thinking of going upmarket. If you are not limited on how many cars you can sell stick to the low-middle Japanese stuff. If I could get a reliable supply of Camry's, Civic's and RX300's at say 15% under final sales price I would make money hand over fist over the high end stuff. I could sell an automatic Camry a day in San Diego and reconditioning has very few things to bite you.

Ah but where's the fun in that? I want to have my cake (exotic car for cheap) and eat it also (Fix and sell on at a tidy profit). I guess I'm still trying to flush out the feasibility of doing this flip stuff full time. I'm kinda burnt out with my day job which is in IT, but still find plenty of enjoyment in working on cars.

They say, "do what makes you happy", then they tell you "don't ever make a hobby your job".

In reply to t25torx:

Not necessarily illegal or considered washing. State of ky allows repairs/inspections to bring a salvage title back to unbranded. It's written into the motor vehicle code.

In reply to Fueled by Caffeine:

Or four people with $25,000. I work with a few young guys that went in on an 6 series when they first came out a few years ago. They all have different days off and have a cool car to use to pick up girls. I kinda wish I thought of it when I was young and dumb.

Well Gas Monkey Garage sold a Ferrari that was in a wreck and are now selling a Ford GT40 that was in a wreck. So there is a market out there, I would just assume that there are cheap people at all different wealth spectrum, and just want a good deal.