[TXSTYLE]

Wanting to know what kind of discount off of moderate to severely Hail damaged cars you all have gotten? And any tips...

[kscarrol]

What you buying Marcus??

[spazzyfry123]

#racecartime?

[TXSTYLE]

Don't want to let the cat out of the bag yet...

If it's not worth it, I won't waste my efforts. I've been reading anywhere from 10 - 30% off retail...?

[UncleWede]

Wait, what is this hail you speak of???

Those spots will buff right out, just like orange peel. . .

[TXSTYLE]

Originally Posted by UncleWede

Wait, what is this hail you speak of???

Those spots will buff right out, just like orange peel. . .

Uhhhm... Not this type of hail damage.

[Run Silent]

If it's a new car - then you should get at minimum, the same discount as the dealership is receiving in the insurance claim. If it is substantially damaged, then you also have to watch out that the insurance claim doesn't total the car and you get issued a total loss title. If that happens - then I wouldn't buy the car for more than 30-40% of dealer invoice.

Otherwise, the general expectation is it is going to cost about $1,000 per panel to fix it, if repairable - so a standard discount would be around $4000-6000 less than the normal best price - it doesn't really matter what kind of car it is, since the cost to repair a Hyundai isn't any less than to repair an S65 AMG.

Typically, it isn't a good buy.

[nyalpine90]

You can get 10% off on new car, but on new car that was damaged I would go bit higher.
depending how much work is done and how the car looks...i would aim 15%-20%

[spazzyfry123]

Are you buying already repaired or as-is? Curious how this process works...

[TXSTYLE]

Originally Posted by Run Silent

If it's a new car - then you should get at minimum, the same discount as the dealership is receiving in the insurance claim. If it is substantially damaged, then you also have to watch out that the insurance claim doesn't total the car and you get issued a total loss title. If that happens - then I wouldn't buy the car for more than 30-40% of dealer invoice.

Otherwise, the general expectation is it is going to cost about $1,000 per panel to fix it, if repairable - so a standard discount would be around $4000-6000 less than the normal best price - it doesn't really matter what kind of car it is, since the cost to repair a Hyundai isn't any less than to repair an S65 AMG.

Typically, it isn't a good buy.

I was just talking with a partner of mine out of state who has indeed bought such cars and he echoes a lot of what you just said.

The key is: how extensive is the damage and how does insurance handle it on their end?

If say a $60k car can be had for $30-$35k, I can get the repairs done modestly myself. And that would be ideal.

Thanks!

[TXSTYLE]

Originally Posted by spazzyfry123

Are you buying already repaired or as-is? Curious how this process works...

Great question! It can go either way. The biggest discount will be as is of course.

[Joekerr]

Originally Posted by TXSTYLE

I was just talking with a partner of mine out of state who has indeed bought such cars and he echoes a lot of what you just said.

The key is: how extensive is the damage and how does insurance handle it on their end?

If say a $60k car can be had for $30-$35k, I can get the repairs done modestly myself. And that would be ideal.

Thanks!

Well...at that discount, a $100K car could be had at $50 - $58K....you could be cruising in a 2019 M5!

[Run Silent]

Originally Posted by TXSTYLE

I was just talking with a partner of mine out of state who has indeed bought such cars and he echoes a lot of what you just said.

The key is: how extensive is the damage and how does insurance handle it on their end?

If say a $60k car can be had for $30-$35k, I can get the repairs done modestly myself. And that would be ideal.

Thanks!

Yeah, again - just beware of any title branding. If you are getting a discount that is amounting to that large of a sum of money, then that is a strong indication that the insurance wrote off the car. Won't impact the driving habits of it in anyway for you, but it will decimate the resale value should you decide to sell it at some point.

I ran a large 20 store dealer group for many years, so hit me up on PM if you want any further recommendations or questions answered.

[spazzyfry123]

Originally Posted by Run Silent

Yeah, again - just beware of any title branding. If you are getting a discount that is amounting to that large of a sum of money, then that is a strong indication that the insurance wrote off the car. Won't impact the driving habits of it in anyway for you, but it will decimate the resale value should you decide to sell it at some point.

I ran a large 20 store dealer group for many years, so hit me up on PM if you want any further recommendations or questions answered.

I'd have to imagine that these could not be financed either because of the title branding?

[TXSTYLE]

Originally Posted by Run Silent

Yeah, again - just beware of any title branding. If you are getting a discount that is amounting to that large of a sum of money, then that is a strong indication that the insurance wrote off the car. Won't impact the driving habits of it in anyway for you, but it will decimate the resale value should you decide to sell it at some point.

I ran a large 20 store dealer group for many years, so hit me up on PM if you want any further recommendations or questions answered.

Appreciate it!

[TXSTYLE]

Originally Posted by spazzyfry123

I'd have to imagine that these could not be financed either because of the title branding?

Correct!

[Run Silent]

Originally Posted by spazzyfry123

I'd have to imagine that these could not be financed either because of the title branding?

It depends, it varies from state to state and also from lender to lender.

For example - in the prime market, Wells Fargo won't loan anything on branded title cars, but BB&T will so long as the LTV is <50% of clean NADA. So, it's a case by case basis - but overall, you are correct - it is much more difficult - but not impossible - to borrow money on a branded title car.

As such, this not only impacts the value of the vehicle, but also substantially reduces the buyer market when you are ready to sell.

[litxus]

I have done this in the past, in the end you are not really saving that much more. You buy at discount and you sell at discount to a small market of buyers. Financing is usually non existent and some insurance companies will not insure it. You might run into issues with some warranty work or recalls as well. If you plan to sell this car in the future and it is a regular car, then I would stay away. This only makes sense if you want to buy a highly sought after car. For example a Supra, M3, STi, EVO as those will be desirable even with a branded title.

[Alfisti]

I would only consider it under the following conditions;

1) massive discount, like 40% minimum
2) You're paying cash or have your own LOC to pay it with
3) no intention to re-sell, just drive it into the ground

I effectively did the same with my 9-3 wagon. it was 2010, I knew Saab were going bust, 100% knew it, so looked for deals as they make nice wagons. Picked up a 2008 with 22,000 miles on it for $17K. Still driving it today, an absolute steal of a deal but the conditions had to be right for it.

[TXSTYLE]

Yeah... After talking with them, it won't be worth it. They are either totaling out certain vehicles or repairing them and discounting them modestly. Pass.

Thanks for the input.

[Germanauto]

Seems like any money you save up front won't make up for the loss you'll take when it comes time to sell.

[Hawkeye]

Last car I bought was for the wife (Camry) and was hail damaged. The dealership's body shop had repaired it to where you couldn't tell at all. We got a few thousand below invoice and 0% for 72 month financing incentive which was much better than anything else I was seeing on those vehicles last year.

Based on haggling with a few other dealers I would say we got 10-15% discount (based on MSRP) over what we could have otherwise gotten.