Why Hail Damaged Cars at Salvage Auction Are NOT Worth Rebuilding

Why Hail Damaged Cars at Salvage Auction Are NOT Worth Rebuilding


Hey guys, and welcome back. I am sam crac and today. We’re going to follow up on those 2 hail damaged cars that we discussed in our previous video the Hyundai according to how everybody says I need to pronounce it in the comment section and the mustang Gt But I’m going to tell you why I think that hail damaged vehicles are generally not the best deal at the auction So when it comes to hail damaged cars They’re kind of a double-edged sword because they’re the easiest cars to understand the damage in to fix the damage It’s generally a bunch of dents all over your car, and maybe a broken window and some trim pieces. But on the flip side since the damage is so easy to understand and directly in your face it generates Substantially more buyers than a regular damaged car flooded car or any other sort of at the auction so that means that the prices are Substantially higher on them I’ve seen clean title hail damaged cars Go for ninety cents on the dollar and in my opinion it is not enough of a discount to get excited about a hail damage car. And so you heard me just say clean title hell that refers a lot of cars are clean title and house hail damage What happens is dealership will have the car on the lot the hailstorm will come through and instead of dealing with the process of fixing them and reselling up and maybe dealing with the liability of Hiding things up and somebody discovering it. They just send them directly to auction and You and I can bid on them, so yeah You can get a clean title but say in the case of the mustang in the hyundai if they had clean titles instead of those by now price being 22,000 the Mustang and around $13,000 for Hyundai you’d be talking about probably a $5,000 premium on top of both of them if they had clean title in the stock market when everybody’s focused on one trade They called a crowded train and That’s how I feel about Hail damaged cars and David in the comment section pretty much hit the nail on the head with this common right here Is that there’s too many people that they attract so that’s why I tend to not focus on hail. Damaged cars the bats take hold As you don’t see this every day look at that at the prius with this Prius converted to like a El Camino truck style look at that thing Check this thing out on like yeah short of that like an El Camino Prius come on guy, speed up And they got their nice vegan bumper sticker check that out … unbelievable so the Hyundai and the So the Hyundai and the Mustang are such mass-produced vehicles That means that new off the dealer lot. There’s big incentives to be had on these cars and that mustang that retails for forty you can pick up new for, I’d say, anywhere between like 36 37 thousand to give you an example I bought a certified pre-owned mustang gt in the early 2016 Early last year. I bought it for $29,999 its MSRP for $42,000 and it had 13,000 miles on so that mustang I bought had a extended warranty because it was certified pre-owned and it has the Remaining factory warranty whereas the salvage one would have zero warranty when you buy a car that’s salvaged the warranty goes away completely for Obvious reasons in my car well it did have 13,000 miles wasn’t brand new You still have a car the clean title, it was a really nice spec, and there’s so many mustangs out there that the first year resale is a killer $42,000 car after the first year with average miles always sell about $10,000 less maybe eight or nine thousand dollars less depending Car in the location the Hyundai on the other hand is just a bad deal pretty much all around because you can buy them too at the dealership like many other people pointed out and again such a mass-produced car the incentive on a new one is Pretty typical you know three four thousand dollars off. Sometimes not even negotiating Well, I hope you enjoyed this discussion on hail damaged cars I want you to be a part of the discussion in the comments section below be sure to drop me a line if you like This video give it a thumbs up if you got a good deal on a hail damage car Tell me about it a few people already have also make sure you’re subscribed for future updates I’ve been lining up a few car projects that we’ll work on together And be careful out there on the road because this almost happened to me today Excuse the language and I’ll catch you on the next video Like what’s going on here? What the f–k is going on? What the hell’s he doing this guy’s in front of me? You should’ve seen this the guy, the light’s green, the guy goes and he goes and the car starts going in reverse I almost had a Two-time salvage S3 on my hands because the guy in front of me anyway

About the Author: Michael Flood

42 Comments

  1. A lot of the Copart clear title cars show salvage in the history. If I am flipping one of these cars, will the buyer be able to get a loan on it from bank or finance company?

  2. I was looking at a few Subaru Foresters on Copart with clean titles but due to hail damage totaled by the insurance companies. Guess I should just keep looking.

  3. We get bad hail every year so there are always hail sales in Colorado, the only thing I would worry about is how much water got into the car, I'd look for a car with damage and cracked windows not
    Broken or leaking windows. I drove around a hail damage car just changed the windshields and windows and drove it till it got wrecked it looked like Swiss cheese drove good tho

  4. If you purchase a vehicle with a salvage title due to hail, do you have to fix the hail damage in order to get it retitle to rebuilt? Or can it pass inspection as is?

  5. I got a 2014 toyota corolla for roughly 4k less from a private seller and the damage was so unototicable and I also usually run my vechical into the ground so that was a win win for me

  6. Sam,

    What are your thoughts on fixing a hail car to keep? I get that there is not enough of a profit margin for a flip but what about to hang on to? Real life example being, my wife wants a Porsche lol.

  7. Sam, we see a lot of firefighters and cops who actually want a car that is mechanically reliable, but BUTT UGLY. They call them "beaters". Because their cars are left parked in a lot all day while they are on the job, car thieves know they will not be interrupted, so the cars get targeted big time. Yes, even in fenced locked lots at PDs and fire houses.

    A hail damaged car, mechanically great but with every body panel beat? A lot of these guys would want it! Even "ugly" gets loved.

  8. Hey Sam!
    I’m from The Netherlands 🇳🇱, love your channel!
    If I’ll import a damage car into my country, our gov will give me a kind of discount on car import taxes upfront close as high the repair cost for the particular vehicle would be.

    For example.
    A 2014 Ford Fusion (Mondeo in EU-spec) in good condition with like 50k miles would cost me €23.000/$26.000 at the local Ford dealership. If I’ll buy a hail suffered Fusion for like $5/6k, shipping to EU $2k and repairs $4 it would cost me $12k (€9500). My gov would tax me like €4000 on a Mondeo, let’s say I receive a damage discount of €3000.
    In total a US spec Fusion would take me €11000 or like $13000.

    This given makes it a pretty good deal for us European?
    Keep up the good work!

  9. Hail damaged cars are great for college students like me who care more about having a reliable, safe car than a good looking one. I have had multiple friends who bought newer, low milage cars to just drive as is without putting any money into them other than cracked/broken glass.

  10. Hey Sam! So I saw this Audi A6 2003. Very beautiful, have 90miles on it and only one owner. Clean title. Just $1500. But it’s hail damaged car. What’s my best option here?

  11. Do you know if you can have a hail damaged salvage car with minor hail damage titled with a rebuilt title without fixing any of the body damage expect the windows if they are damaged?

  12. there is a way to get hail damaged cars either to profit for resale or keep as your own, and both ways you will have a new car with 5-10k savings when all said and done. you just have to know which cars to buy

  13. Something like the Hyundai is noy worth rebuilding but is a good deal for someone who wants a discount on a newer safe/reliable vehicle if they are willing to drive with hail damage. Great for a commuter vehicle or a first car for a teenager, college student–buy at the discount "salvage" price and live with the hail damage. A car like that would still be mechanically sound and a better option than spending the same amount on a clean title/non-damaged version of that vehicle from a used car dealer.

  14. There was a commercial put out by Hyundai a few years ago where the narrator specifically states the pronunciation – "Hyundai, like Sunday"

  15. Here in Australia there is no legal way to re-register a car that has ever been written off. There are a couple of exceptions (historic being one) including hail damage – but only if you owned the car for 28 days or more before the damage was done. Which basically means if the person who owned it when the damage was done isn't interested then it can never be registered again, which is a pain in the ass, because I just found a car with nothing but a few dents in the bonnet/hood but I can't register the damn thing!

  16. My contribution to the video's subject:
    In my country we say Hyundai something like the way you guys pronounce HUGH with a short U, a short N and then DIE.

  17. I had a Ford Festiva totaled out from hail when it was 3 years old … The insurance company paid me full retail value minus what the auction fees would have been (it was so worthless they didn't want to deal with it) and made me drop comprehensive… sold it to a relative cheap and it ran for 15 more years.

  18. If I found a hail damaged car that I want to be an offroad car/ family trip car and it has a clean title thats fine right, theres no special classification because its hail damaged?

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