I have the "opportunity" to buy a 2006 WRX Limited today of $5500. It has 127,000 miles. If that was the end of the story this would not be a question. I have TWO wrx's already. I will be selling one, if not both for a small profit in the hopes of buying a better...wrx. I happened upon this car last night. I have the right to buy for 24 hours. Here's the deal: Book value in "fair" is over $8,000. The car is "prior salvage". Its black with sunroof, big brakes, climate control, STI turbo, intercooler, and spoiler. Full STI interior too (seats and door cards). Has some other mods: 18" rims, suspension which is VERY nice (crisp handling, nice ride), short shifter. Other than the prior salvage it has a lot going for it. Good paint, no body exterior rust, couple scratches, no dents. Pretty good shape. Shifts great, starts great, good boost and vac. Now...the scary. Has "no tune", but the CEL does not go on for the catless exhaust? CEL does work when you turn the key. Don't know why it was salvage... Also, there is either a wheel bearing or poor alignment so the rear roars at speed. (bearing or tires, I think tires). AND...There is a significant turbo lag. Based on that info...advice? I answer yes or no tonight... (I will likely SELL the car shortly after purchase)
Have been driving it like this for years! Daily driver. I got a message from the seller. Found "more info" about the tune and title... I will call him and report what this "new info" is.
No tune? Salvage title? Turbo lag? Rear rotors/tire issues? and you already have 2 WRX's...I don't know whats not to like about this!
It's really about the INVESTMENT. I don't need to like it, just need to find its value to the next buyer. I'm looking at $5500. What price could I sell this for? That's what I have to ask myself. At 80% of fair value I'm still $1000+ ahead. Is that enough? Could I sell this car for $7k or even $8k? The salvage was for engine failure. It was repoed and auctioned. Has new engine parts and a new clutch at 92k.
I passed on the car. Thank you all! Be sure to check your local craigslist in the near future. This car won't last long. I'm pretty sure I could have gotten $8,000 for it. But just not worth the risk.
I have a life lesson for you. Cars are NOT an INVESTMENT, unless your name is Jay Leno. If you have that kind of extra cash laying around, it would be far wiser to invest it or at least put it in a high interest rate savings account.
That is 100% NOT TRUE. I'm currently making an 80%+ annual return buying and selling cars. The stock market can't even come close. A savings account!? at 3% if I'm lucky!? Over the last 3 months I've made MUCH MORE buying and selling cars than I do at my very well paying day job. I've paid off an entire student loan (1 of 3 I have). I have never come close to losing money on any car I've bought. The least amount of return was over 30%. This car was a stretch. Most cars I buy are around $1000 and I usually sell them for around $2000.
So, have you been paying taxes on these cars? Titling them in your name? Do you have a dealer's license?
Everything I do is 100% legal. I cross all my t's, dot all my i's. I do title the cars and insure them. I would buy or sell any of these cars from or to any police officer, senator, or anyone else. I looked into a dealer's license. I would love to get one, but could not at this time. Don't need one anyways for what I do.
LOL. I'm no cop. I was about to warn the OP to be careful of advertising that he was title jumping and whatnot on a public forum. But he sounds like a stand-up guy and playing by the rules, which is good to hear.
Well, 5 is what I believe is the "rule". Not really an issue. I got a bit more picky on the cars I buy. Would take a whole lot of cars sold before this was an issue for me. I could only hope to reach a limit! Not a problem this year as I started in mid July. Maybe next year.
I didn't even feel like reading past the "Salvage title" and selling for more. Why would anyone buy a car that has a salvage title? It's salvaged because it had so much damage that made it not worth fixing .... 70% by the insurance company in Minnesota. So the value of the car is worth 30% in my eyes. Sure you can part it out for more, doesn't mean it's worth that much if the parts are in the car running. Salvage cars will never run/drive right unless you do a complete restore. Which means spending thousands on straightening a uni-body "haha". Not joe dirt down the road tying it to a tree and winching that bitch.
