Buying a car previously owned by AMI Insurance

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Martin_NZ

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Topic # 113332 14-Jan-2013 10:57

Im looking at buying a used 2001 Nissan skyline in Auckland.

It is about 3000 cheaper than comparable models I have seen. It seems a very good price. I went for a test drive and it drove quite nice. Body was in good condition apart from a few cosmetic bumps and scratches which are to be expected given its a 12 year old car. Everything seemed to be in good working order

So next thing I did was to do a history check. It showed a private owner who had it for 5 years. Then AMI insurance owned it for 3 weeks, then a private owner for 11 days, then the current owner for last few months. Im not a mechanically minded person but this rang warning bells.

Would this indicate it has most likely been crashed and an insurance write off then repaired or could there be some other explanation. Is it necessarily a bad thing or should I give it a wide berth and move on.

If it had been badly damaged and repaired would an AA check pick this up.

Any advice appreciated.
Thanks.

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Reply # 744410 14-Jan-2013 11:00

It has very likely been repaired after a (reasonably serious) crash. The main reason an Insurance company would take ownership is if the car was "written off" (repairs more than insured value of car).

Then what happens is the cars are auctioned off, bought by panelbeaters and repaired.

I would take it to a panelbeater to check, an AA check is unlikely to tell you much, they are fairly cursory TBH and focused more on mechanicals.

If it's been repaired to a high standard, then maybe it's not a problem anyway.

Handsomedan

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Reply # 744419 14-Jan-2013 11:19

Like you, I'd have alarm bells ringing...

Thorough check by a good pre-purchase inspection company or a really trustworthy panelbeater is a pre-requisite.

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K1000716

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Reply # 744427 14-Jan-2013 11:22

Sometimes the amount of damage required for a car to be written off can be relatively minor. I've seen more than a few cars written off after frontal impacts due to the high cost of replacement parts (headlights, bumpers, guards, bonnets, grills, radiators etc).

From memory the decision to write off a car is based on the % of the repairs compared to the insured value.

As ubergeeknz mentions, some form of pre-purchase inspection by a panelbeater is a must. A little money spent here might save you a great deal of headaches later. In saying this, the car would have had to be properly inspected before being allowed back on the road.

Good luck, hope it all goes well!

Lee

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Reply # 744430 14-Jan-2013 11:25

It's also possible it was stolen, the insurance company paid out, then it was recovered. AMI would have then sold it on (cheap). The 11 days owner would have bought it to onsell (on TradeMe probably). I'd say it's OK, but get the chassis checked.

The DWL license plates were probably issued in about 2006/07 (can't remember exactly, but I got a newlyregistered car about then with DGN plates) so it looks like it has been continuously registered since it came into NZ. I'd say it wasn't in a really bad accident as it probably would have been de-registered.

Our of interest, how many K's?/How much? I bought one last year (2001 2.5L) for 9,800 that had done 98,000kms.

Martin_NZ

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Reply # 744433 14-Jan-2013 11:30

It was originally registered in NZ in 2007. Hes asking 8500 it has 98,000km

It is the 300GT not the 250GT.

http://www.trademe.co.nz/motors/used-cars/nissan/skyline/auction-552021626.htm

Martin_NZ

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Reply # 744435 14-Jan-2013 11:32

Would AMI tell me if I rang them and asked?

Dingbatt

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Reply # 744439 14-Jan-2013 11:37

You also would want to check things like the status of the airbags. If it has been in an accident and the airbags have activated they can e expensive to replace. Same goes for the seatbelt pre-tensioners.Are the insurance company able to give you any info about their ownnership period?

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lxsw20

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Reply # 744462 14-Jan-2013 12:15

Airbag light not on? No big white deflated airbag in front of you protruding from the steering wheel? I'd say you're OK airbag wise :P

allan

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Reply # 744465 14-Jan-2013 12:19

Having worked for a motor vehicle insurer in a past life, I would say there is a fair chance that it was written off following an accident, was purchased via tender (the 11 day private owner you mention), repaired back to roadworthy standard and on-sold. A write-off doesn't necessarily mean that there was massive damage, just that the cost of repair at commercial rates exceeded the sum insured, so hard to answer your question about whether it's a bad thing or not.

Sometimes a vehicle is bought at tender by someone who say works as a panel beater or similar, repairs it at cost and then on-sells it for a profit. This could be what happened here.

Martin_NZ

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Reply # 744475 14-Jan-2013 12:38

The airbag light only came on briefly along with the other usual dash lights when turning the car on. Once started the lights all went off.

I am in Christchurch can anyone recommend a reputable panelbeater who for a fee could inspect the car on my behalf in Auckland.

ubergeeknz

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Reply # 744479 14-Jan-2013 12:46

martinschcnz: The airbag light only came on briefly along with the other usual dash lights when turning the car on. Once started the lights all went off.

I am in Christchurch can anyone recommend a reputable panelbeater who for a fee could inspect the car on my behalf in Auckland.

I know Hauraki (fka Howarth) are excellent, I have had repairs done by them a few times now, and the jobs and their customer service have been to a very high standard. Whether they could do what you're asking is another question, but worth asking. They have branches around Auckland.

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Archer77

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Reply # 744483 14-Jan-2013 12:53

I don't think it would have been written off - if it was I would expect the MVR (registration) to have been cancelled, but the registration on the vehicle has been continuous while in New Zealand. Also the time frame doesn't fit with a write off. 11 days, which is 7-9 week days, seems very short time frame for a written off vehicle to be repaired, groomed, advertised and then sold.

I think it looks fairly likely it was stolen, AMI paid out and became the owner, then on-sold from there. 11 days ownership fits better with someone picking it up cheap from AMI/auction, replacing window and/or ignition and then selling.

allan

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Reply # 744514 14-Jan-2013 13:41

Archer77: I don't think it would have been written off - if it was I would expect the MVR (registration) to have been cancelled, but the registration on the vehicle has been continuous while in New Zealand. Also the time frame doesn't fit with a write off. 11 days, which is 7-9 week days, seems very short time frame for a written off vehicle to be repaired, groomed, advertised and then sold.

I think it looks fairly likely it was stolen, AMI paid out and became the owner, then on-sold from there. 11 days ownership fits better with someone picking it up cheap from AMI/auction, replacing window and/or ignition and then selling.

Yes actually you could be right. Good point about the registration.

jpoc

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Reply # 744773 14-Jan-2013 21:15

allan:
<snip>
A write-off doesn't necessarily mean that there was massive damage, just that the cost of repair at commercial rates exceeded the sum insured, so hard to answer your question about whether it's a bad thing or not.
<snip>

I think that your maths is wrong here. The equation is:

Cost of repair at full commercial rate > Insured value - Value of the damaged vehicle as it stands.

For example:

Suppose that the cost of repairs is $5,000 and the insured value is $10,000 and the damaged vehicle can be sold to a panel beater for $6,000.

The insurance company can pay $5,000 dollars to fix the car and carry a risk that the owner complains about the quality of the repair or they can hand over $10,000 and sell the damaged vehicle for $6,000 at a net cost to them of $4,000 and no comeback from a disgruntled owner.

Of course, in the case at hand, it does seem most likely that the vehicle as stolen and this equation does not apply but I think that is how things work with damaged vehicles.

hairy1

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Reply # 744778 14-Jan-2013 21:24

Have you asked the current owner of they can shed any light on AMI owning it?

My views (except when I am looking out their windows) are not those of my employer.

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