Buying a code 2 (used) car from auction

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ndy

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Good day my BB forum gurus

I need help, I have identified a handful of low mileage cars of auction (SMD, mycars, aucor, etc. I researching to buy one but have few questions, sorry:

Since the mileage is around 50 000kms, will it still be covered with warranty?
Will it still be covered with service or maintenance plan?
In a situation where one or two airbags were deployed, what would you advise? There are cars under 15 000kms which is almost new that had this situation.
There was also some multi purpose vans / moms taxi which I could use to transport people to work but some of these their licence disc have expired, would I need to take the car for roadworthy test or something, if so what can make it fail?
from an insurance point of view, is there any advise you can give me? Like would they refuse to insure my car for example?

Your input would greatly assist me decide.
 
To answer your questions...

Given the fact that the vehicle is being auctioned, there is a good chance it missed a service, or something was done that would void the warranty, but its not a guarantee. You will need to get the VIN number to check with the dealer.

A car with 1 or 2 airbags deployed is indicative of an accident, and I wouldn't touch it with a bargepole at all.

If the car is merely a code 2 then no they won't refuse you insurance.

Be aware, that any vehicle that is auctioned is a massive gamble for an end user.. they auction house has no duty to repair the vehicle if there are major issues.
 
ToxicBunny said:
To answer your questions...

Given the fact that the vehicle is being auctioned, there is a good chance it missed a service, or something was done that would void the warranty, but its not a guarantee. You will need to get the VIN number to check with the dealer.

A car with 1 or 2 airbags deployed is indicative of an accident, and I wouldn't touch it with a bargepole at all.

If the car is merely a code 2 then no they won't refuse you insurance.

Be aware, that any vehicle that is auctioned is a massive gamble for an end user.. they auction house has no duty to repair the vehicle if there are major issues.
Click to expand...

I think he's referring to cars being bought for rebuild. SMD is a scrap management company (I might be wrong though)

So if that's the case I don't know how that affects any warrantees on the vehicles.
 
Pitbull said:
I think he's referring to cars being bought for rebuild. SMD is a scrap management company (I might be wrong though)

So if that's the case I don't know how that affects any warrantees on the vehicles.
Click to expand...

SMD do also sell non-rebuild vehicles these days..

BUT if he's look at the rebuilds then none of them are code 2... they will all be code 3, and thus no warranty, no service plan, and very difficult if not impossible to insure.
 
ToxicBunny said:
SMD do also sell non-rebuild vehicles these days..

BUT if he's look at the rebuilds then none of them are code 2... they will all be code 3, and thus no warranty, no service plan, and very difficult if not impossible to insure.
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Nope, you get code 2 rebuilds. Depends on the structural damage to the vehicle. And insurance company can "write" off a car due to the cost involved in fixing it and sell the vehicle on either auction or to people they have an agreement with. So the vehicle is not actually scraped as code 3 on system as the vehicle is the repaired via these channels for cheaper and re-sold as used (code2).

You will be amazed at how many 2nd hand vehicles are actually rebuilds ;)
 
No guys I am not referring to Code 3 or rebuilds, only code 2 salvage (stolen and recovered, accident damage) or pre owned even if repossessed.
 
Pitbull said:
Nope, you get code 2 rebuilds. Depends on the structural damage to the vehicle. And insurance company can "write" off a car due to the cost involved in fixing it and sell the vehicle on either auction or to people they have an agreement with. So the vehicle is not actually scraped as code 3 on system as the vehicle is the repaired via these channels for cheaper and re-sold as used (code2).

You will be amazed at how many 2nd hand vehicles are actually rebuilds ;)
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Oh I know a hell of a lot are.. I've had the misfortune of being sold one and not told the full extent of the repair work, that was a very unhappy dealer when I ended up getting McCarthy head office involved...

As far as I was aware the majority of the vehicles "scrapped" by the insurance company are officially scrapped on eNatis, which would then make them Code 3 regardless of the level of damage.
 
ndy said:
No guys I am not referring to Code 3 or rebuilds, only code 2 salvage (stolen and recovered, accident damage) or pre owned even if repossessed.
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Exactly what I thought :p

Edit: Just be very wary of Stolen Recoveries. You will run into endless problems with taking out the license and so on if it's not done correctly from the start. I had that issue with one of my vehicle which was stolen and recovered the same day. Once marked with an S on system it's nearly impossible to have it resolved.
 
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Just my personal opinion. Would not touch a code 2 or code 3 unless I was planning on keeping it as a farm vehicle or using it as a recreational vehicle (a weekend 4x4 or some such). Reselling said vehicle is ALWAYS a headache.
 
I know some would not want to touch a car that was in an accident and hand an airbag or two deployed but is there no reputable services providers that can carry out this work and restore the vehicle?
Secondly what happens if a licence disc has already expired, would I need to take the car for roadworthy test or something, if so what can make it fail?
 
ndy said:
I know some would not want to touch a car that was in an accident and hand an airbag or two deployed but is there no reputable services providers that can carry out this work and restore the vehicle?
Secondly what happens if a licence disc has already expired, would I need to take the car for roadworthy test or something, if so what can make it fail?
Click to expand...

People make a living by buying these cars, repairing them and selling them. There is a market for it obviously. If you have a company that can repair these cars to near perfect condition, no one will be non the wiser. Unfortunately that's how it is and the reason you need to look through a second hand purchase with a fine tooth comb.

Just a tip:
Try and avoid BMW, Audi and Mercedes-Benz if you doing this. They keep records of all the repairs and accidents. Especially since the insurance on these vehicles financed through these places are placed with specific insurance like BMW insurance and the likes.
 
Look at how much you are saving vs buying from a dealer and also check how bad the damage is and how much it's going to cost to repair. If you know some reputable mechanics and panel beaters then you shouldn't be worried. Some repair shops do a better and stronger job than the what the car came out with from the factory.
 
Fox1 said:
Look at how much you are saving vs buying from a dealer and also check how bad the damage is and how much it's going to cost to repair. If you know some reputable mechanics and panel beaters then you shouldn't be worried. Some repair shops do a better and stronger job than the what the car came out with from the factory.
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:confused:
 
I would say that if you have to ask for advice on here, then buying vehicles like that is a huge risk.

If you know cars, have some mechanical knowledge, and have access to a good workshop who you trust, then you can take a risk and you might well get a good deal. If you're asking here, that tells me that you're not confident and don't have access to solid advice in your real life, and unless you're OK with risking the money and possibly being out of pocket on the deal, I'd advise you to deal with a dealership where you have the CPA and the ombudsman behind you.
 
Thank you guys for the feedback, buying a car on auction looks a cheaper option even though very risky. I guess the cars that were once in an accident or recovered even more riskier though their price invites one to consider. I have limited technical knowledge of cars and do not know any mechanic / adviser. What was on my mind was check bargains from minor accidents then take the car for repairs.
 
If you do not have a lot and I mean a lot of technical knowledge about cars, then steer clear of these vehicles. No matter how good it looks, it is a very big gamble.
 
ndy said:
Thank you guys for the feedback, buying a car on auction looks a cheaper option even though very risky. I guess the cars that were once in an accident or recovered even more riskier though their price invites one to consider. I have limited technical knowledge of cars and do not know any mechanic / adviser. What was on my mind was check bargains from minor accidents then take the car for repairs.
Click to expand...

Unless you know exactly what to look for, you are taking a monumental risk, and always remember that something that looks like the cheaper option is very often the more expensive option.

The only time I would buy a Code 3 is if I was going to race or rally it.

You ask about warranty and service plan.....you must be joking - the minute a car has to be coded, anything resembling any sort of warranty or plan flies out the window.
 
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