While working the auction today...

AggieMike88

AggieMike88

Touchdown! Greaser!
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The original "I don't know it all" of aviation.
... buying inventory for my recycling yard, this vehicle came up.

Note both the ACV (actual cash value) and the final bid price that still didn't meet the reserve.

Plus the title type means that the vehicle cannot be put back on the street or exported, it must be taken apart.

I'm not familiar enough with this vehicle to know if this was a good buy as a salvage item for parts, but the amount of money for a car just boggles my mind.

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Flooded in Texas. Beautiful car! I'll have to ask my husband he loves those kind of cars! The price to do an oil change is like $500 (not real sure of that number but it was obscene!)
 
AggieMike88 said:
Plus the title type means that the vehicle cannot be put back on the street or exported, it must be taken apart.
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More money than brains....

Could the vehicle be taken out of state and registered?

I'd suspect the buyer isn't intending on selling that vehicle legitimately, but rather patching it up and putting it on the road by any means. Such as moving it to a non-title state or even forging a title.

I don't think Texas can restrict export. That's interstate commerce. And I'm a bit surprised it's titled only for destruction, and not salvage. With prices like that, it should be cost effective to do just about anything to it.

People get stupid with Ferarris.
 
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> destruction, not salvage ...

Interesting distinction. I am guessing that salvage is allowed. A buddy in the used auto/auction visit says that the title can probably be washed clean in AL.
 
30 years ago, most likely. But now, not in Alabama, not a chance.
 
How many Ferrari owners are going to salvage yards for parts? I guess that's the $200,000 question.


Buy it and use it as a track car.
 
I go to the auctions (Car and Motorcycle) twice a month for my work. Auction prices are STUPID right now.

The ACV value is really misleading. Who's ACV? ACV stands for Actual Cash Value and is subjective. MSRP on that machine brand new was only $201,000. High retail value today is $154,700. With a Salvage title it is probably worth half that. They should have been happy to get $125,000.
 
Probably as salvage in my local market he'd do ok with it, but not spectacular.
 
jdhowe75 said:
I go to the auctions (Car and Motorcycle) twice a month for my work. Auction prices are STUPID right now.

The ACV value is really misleading. Who's ACV? ACV stands for Actual Cash Value and is subjective. MSRP on that machine brand new was only $201,000. High retail value today is $154,700. With a Salvage title it is probably worth half that. They should have been happy to get $125,000.
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Auction prices have always been a bit stupid for buying unless an oddball came through or you're very late model. I've been going to auto auctions since 1976 and they have always been crappy to buy at but what killed them was the proliferation of 'Buy Here, Pay Here' lots. They sell at huge mark up prices and realize that repos are the gravy. You don't want to sell the car till the seventh buyer and basically you make $15k+ off a $4500 car that got sold for $6k.
 
MadseasoN said:
How many Ferrari owners are going to salvage yards for parts? I guess that's the $200,000 question.
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More than you expect. A pilot friend of mine runs All Import Auto Parts in Fort Worth and is starting to gun for the $40k-90k luxury cars to add to his parts inventory.

He is building a very nice niche market for these parts since those car owners (and the repair teams) are looking for affordable alternatives to the new, and there are very few recyclers who offer them.

Another buddy in Wisconsin does this for Dodge Viper parts and is doing very well. He does have to go all over the US for inventory, but what he gets is worth the expense of the haul.
 
jdhowe75 said:
I go to the auctions (Car and Motorcycle) twice a month for my work. Auction prices are STUPID right now.
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For salvage and non-repairable vehicles too. There are some decent deals out there, but it takes more work to find them. The internet opened the door to overseas buyers who add that much more competition for the same vehicles. Before the internet, usually it was the 50-100 folks attending the live event. Now there are 500+ attending.

Granted, now I don't have to stand in the hot sun anymore to bid on inventory, but it is frustrating how hard I have to work for the number of vehicles I actually win.
 
Henning said:
Auction prices have always been a bit stupid for buying unless an oddball came through or you're very late model. I've been going to auto auctions since 1976 and they have always been crappy to buy at but what killed them was the proliferation of 'Buy Here, Pay Here' lots. They sell at huge mark up prices and realize that repos are the gravy. You don't want to sell the car till the seventh buyer and basically you make $15k+ off a $4500 car that got sold for $6k.
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The "buy here, pay here" are a big pain in my caboose. They are bidding on the same cars I do, that are obviously too far gone to repair, knowing they can do a barely acceptable repair, and foist them off on the desperate folks who can barely afford the payment. Too often the vehicle that is truely valued at under $1500 for parts winds up nearly twice that, I and I can bet it's going to a car-lot.

They have created another headache. Too often they are dumping the cars that have major issues and not declaring that the engine smokes, knocks, or is partially dismantled and that the transmission has issues too.

Oh well, enough belly aching.... fortunately, I can still get most of what I want at the price that I want... I just keep nimble and creative and stick to my buying strategy.

46% COGS and I'm working hard to get up to 4.5 turns/yr. Not quite there yet, but headed there.
 
If you have a wrecked vehicle with a clean title the title/data-plates will end up on this car and it will be resold for a nice profit...
The destroy-only title will be returned to the state and on paper every thing is legit...
 
jdhowe75 said:
I go to the auctions (Car and Motorcycle) twice a month for my work. Auction prices are STUPID right now.

The ACV value is really misleading. Who's ACV? ACV stands for Actual Cash Value and is subjective. MSRP on that machine brand new was only $201,000. High retail value today is $154,700. With a Salvage title it is probably worth half that. They should have been happy to get $125,000.
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Exactly. The guy was lucky, especially with that destruction/salvage title.
 
HerrGruyere said:
Exactly. The guy was lucky, especially with that destruction/salvage title.
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The sum of the parts is 3 times new value if not more from the dealer parts counter, why would you think the same not hold true on the salvage market?
 
I wouldn't pay a ton of money for a salvaged Ferrari.

Maybe the people buying it are going to sell it for parts?
 
HerrGruyere said:
I wouldn't pay a ton of money for a salvaged Ferrari.

Maybe the people buying it are going to sell it for parts?
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Yeah, that's exactly what they'll do. There isn't a production machine around that isn't worth more in it's spare parts content than as an operational unit. You just end up getting the money in smaller irregularly spaced allotments.
 
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