Ever bought your bike back from Insurance Co. as salvage?

[drswift]

I've got a bike with heavy body damage and light mechanical damage that could go either way with the insurer. A buddy suggested buying it back at salvage if they "total" it and part it out. If you've gone thru this exercise, I'd like some advice/insight on your experiences and whether you would do it again.

 

Also, if you know how they come up with a salvage value.

[T__]

I've got a bike with heavy body damage and light mechanical damage that could go either way with the insurer. A buddy suggested buying it back at salvage if they "total" it and part it out. If you've gone thru this exercise, I'd like some advice/insight on your experiences and whether you would do it again.

 

Also, if you know how they come up with a salvage value.

 

Dave, I bought a BMW back from the insurance company.. The bike was a good solid non savable total..

 

First off, unless the damage is light or just cosmetic don’t buy it back with the intent to repair & ride.. Major suspension,, fork,, frame,, rear suspension damage will probably cost way more to repair than buying a good used bike of the same type.. I bought mine back for the title (not a salvage title in my state if the owner buys it back) the power train (low miles on the engine & trans)..

 

Do plan to deal with the insurance company as they will probably will want way too much to begin with.. I think in most states the owner has first rights on the salvage rights but at that their price.. I dickered with my insurance back & forth for quite while then told them to get other salvage bids.. What helped me was the lack of storage yard added cost (I had it hauled to my home) & the cost to have a salvage company come & truck it away..

 

One suggestion I will make is to have them get a salvage bid from other places before you make an offer.. In my case the salvage yards saw a chance to take the issuance to the cleaners so didn’t offer very much so all I had to do was match their price as the owner in my state has first rights..

 

My original plan was to part out the bike & sell off the engine, trans &, computer parts, ABS parts, etc.. I could probably make a pretty good profit on that.. In the mean time my intent has changed & now I am looking for a comparable bike with a blown engine or trans as my engine & trans are low mileage & like new..

 

If you don’t have the storage space (I do),, or don’t want to go though the disassembly & selling of the parts,, it’s probably not worth the bother to buy back..

 

If the bike is easily repairable I’m guessing the buy back price will be fairly high..

 

Twisty

[Big D]

A member of our club had his bike9 an early 2000 model) knocked over in a parking lot and had enough plastic damage for the bike to be totaled by the insurance company. Since the damage was only cosmetic, he bought the bike and fixed it up. The only problem; he now has a salvage title and cannot get it cleared in the state of Florida. Of course, it is registered and he can ride it but will have a hard time selling it to anyone else.

D

[drswift]

If the "value" of the bike is $7K, any guess what the salvage price would be?

[T__]

If the "value" of the bike is $7K, any guess what the salvage price would be?

 

Dave, sure do.. Any place between $100.00 & $6,995.00.. It really depends on how bad it’s messed up & what is left worth anything to be salvageable,, & the miles on the bike..

 

Good low mile engine & trans will add to the value.. Broken forks,, broken rear drive unit,, cracked engine cases,, cracked & busted plastic,, etc will really lower the salvage value..

 

Like I said above,, have them get a salvage quote from their usual salvage companies then see if you want to match that price.. What a salvage company WILL pay is a good indication of what it’s worth to you as they usually low ball on the salvage amount..

 

Twisty

[drswift]

Thanks, Twisty. Will see what they come back with from other salvage companies. Somebody else suggested that with 75K miles on it I should just take the money and find a lower mileage bike and not mess with it.

[tallman]

There are four possible outcomes.

It will be cheaper than you expect.

It will be just what you expect to put into it.

It will be more expensive than you thought.

It will be a money pit.

Sometimes there's a reason to walk away from a deal.

Try to remain objective, arm's length, when you evaluate.

Would a reasonable thrid party w/no emotional investment in the machine spend the time, money, effort, required to get it back on the road?

How does that compare to the real world value of the bike (what someone else will pay for it)?

How realistic is it for you to repair the bike and put it in roadworthy (I'll trust my life) condition?

Good luck, it's a tough decision.

[Larry]

Dave,

My last bike should have been totaled. But I asked the shop to add up the value of every accessory, and any thing else they could find. I went over the bike with them. Got the value up to $700.00 above total, I had accessories the shop hadn’t counted. I took the money and the bike, keep the parts I wanted and parted out the bike. A few days later I got a phone call from the insurance company saying I could buy the damaged parts for $950.00. I told them they were junk to me, and to come pick them up, they were taking up room in my garage. They asked if I would dispose of the parts for them. So I got the damaged parts also. I spoke to the company they said sign the papers, cash the check everything was OK.

[too old to care]

A bike that I sold a few years ago (R90S) was hit with the new rider aboard. Not much damage, but the insurance company totaled it and paid him off. He then bought the bike back for much less and repaired it for very little. It again looks like it is new (it had completely been restored before I sold it to him).

 

He had fears that the insurance would declare it totaled and notify the state and that the only title he could get would be a salvage title. This did not happen, why I do not know. The insurance company never even transferred the bike to them. So, he was able to get full insurance on it again without having it inspected.

 

If this is the same for your bike, I would go for it if you like the bike, or it is not easily replaceable like the R90S.

[tallman]

If the "value" of the bike is $7K, any guess what the salvage price would be?

 

Dave,

Are you being offered $7,000 for a '99 RT w/75,000 miles?

If so, that's a good deal, at least in our area.

We're selling an '02 RT1150 w/18,000 miles for just a bit more than that and an '03 R1100S w/bags for about that.

IMO, that's a fair price for a settlement.

YMMV

Best wishes.

[drswift]

Final result from the insurance company was 30% of settlement for salvage, so I decided to take a pass.

 

The bike did have about $3K in farles, including Ohlins.

 

Thanks for all the =great comments and advice.

[Tapatio]

My understanding is that you can remove any aftermarket parts since they were not considered as part of the value of the vehicle. For example you could remove the Ohlins and replace with the stockers. Any electronics that were added can be removed since they are not part of the original equipment. It might be worth asking your insurance company.

[keithb]

Dave

I would definitely take off the Ohlins and any other aftermarket product you installed. As Tapatio says it was not part of the original bike. In addition, I think you made the right decision to pass on buying the bike.

[tilden]

Dave, I work in the salvage business and the company I work for (and our competitors) process (auction) vehicles for Insurance companies when a vehicle is deemed a total and after a Insurance co. settles with a policyholder.

 

Several folks have offered great information to help you make your mind up.

 

Here is my advice. First a couple clarifications:

1) Your ins co. in CA HAS to allow you to buy the salvage back. (Use the term "Owner retained") your adjuster will identify you as someone who knows the program.

 

2) Salvage titles in most states will be worth about 20% less than a clean title when the bike is sold. If you are going to part the bike it will not matter.

 

3) If your ins. co. said your bike is worth $7k actual cash value minus deductible and taxes etc. depending on the extent of damage, your bike will fetch approx 40%-50% of the ACV at auction. Your insurance company adjuster will know what your bike will bring by looking at previous auctions on bikes with similar damage.

my company and several of our competitors have extensive databases with sales history. The insurances companies utilize these tools to determine the fair market value.

 

Motorcycles sell very well over the Internet, therefore the buyer base is huge. Much bigger than most car audiences. A reason for insane recoveries for Motorcycles 40%-60% of ACV. Cars and trucks are in the 16-25% range! This is one of the reasons ins. co. try to discourge owner retains on salvage.

 

4) Storage and towing is the insurance companies problem, not yours. They will pay all advanced charges (towing and storage etc).

 

Lastly, I would tell you be very aware of salvage you buy.

especially when you can get a new bike with a warranty and absolutely stupid financing terms and hassle free for very little premium.

 

Remember, salvage comes with the "30-30" warranty (30 feet or 30 seconds, which ever comes first)!!!

 

Hope this helps Dave. Good luck what ever you decide to do.

[drswift]

My understanding is that you can remove any aftermarket parts since they were not considered as part of the value of the vehicle.

 

The adjusters did make a thorough list of the aftermarket parts. I got a good settlement for a '99RT, but trying to find a replacment for same money is really tough, and one with the same extras is impossible. God forbid there is a next time, but I would definitely take off Ohlins or similar high-end goodies. Wish I could afford a new one - finanacing is very cheap right now.