"Write off" a car, then repair and sell it ?

Forums › Transport (cars, bikes and boats) › "Write off" a car, then repair and sell it ?

xpd

Geek @ Coastguard NZ
13765 posts

Uber Geek

Retired Mod

ID Verified

Trusted

Lifetime subscriber

#298895 25-Jul-2022 17:34

https://www.nzherald.co.nz/nz/damaged-ute-should-have-been-written-off-not-sold-to-another-customer-for-45k/5YEMZEMRDTRBGRLHPD7E33FZCA/

So... I crash my car majorly, to the point it should be trashed, but because I'm not insured, I can go get it repaired and on-sell it ??? What the **** ?

From the description, the vehicle should never have been allowed to go anywhere except the scrap yard. The chassis was damaged FFS. Its not a 10s fix.

Yes, the buyer was stupid to continue using it.

Imagine if they had got into an accident and someone was killed.

I don't get it. I think NZTA are smoking something to allow that vehicle to be repaired "properly" and allowed back on the road when it should've been written off to start with.

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

LinkTree

1 | 2

BDFL - Memuneh
79250 posts

Uber Geek

Administrator

ID Verified

Trusted

Geekzone

Lifetime subscriber

#2946303 25-Jul-2022 18:04

And how could a business run a car without insurance? Probably not illegal, but stupid.

gzt

17104 posts

Uber Geek

Lifetime subscriber

#2946305 25-Jul-2022 18:08

So... I crash my car majorly, to the point it should be trashed, but because I'm not insured, I can go get it repaired and on-sell it ??? What the **** ?

Yes you can if it is repaired to a roadworthy standard. You can repair anything if you're prepared to spend the money. This vehicle was not repaired to a roadworthy standard. Simple as that.

Bung

6477 posts

Uber Geek

Subscriber

#2946309 25-Jul-2022 18:25

Apart from the unlikely need for an interior design company for a twin cab Hilux they found out almost immediately that it was a dud.

"Within days of buying the vehicle the customer noticed the right front tyre was rubbing on the mudguard and took the vehicle to a local mechanic who told him it had been in a serious accident and had undergone extensive repairs."

They continued to use the vehicle for a year. Hardly a recommendation for getting them involved in any projects.

gzt

17104 posts

Uber Geek

Lifetime subscriber

#2946313 25-Jul-2022 18:42

Bung: They continued to use the vehicle for a year.

The Warrant of Fitness was revoked so that was the end of it.

xpd

Geek @ Coastguard NZ
13765 posts

Uber Geek

Retired Mod

ID Verified

Trusted

Lifetime subscriber

#2946318 25-Jul-2022 19:28

But hes been told if he gets some more work done they'll let it back on the road........ to me, thats insane. Its no longer going to be strong as it was originally.

So they let this accident waiting to happen on the road but refuse to fix my fathers car because the bumper cant be easily repaired.

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

LinkTree

Ge0rge

2052 posts

Uber Geek

Trusted

Lifetime subscriber

#2946320 25-Jul-2022 19:55

If it is repaired correctly (big if) then why shouldn't it be allowed back on the road? "Written off" is a term used to by insurance companies to indicate that it would cost more to fix than it would to be simply pay out the insured value to the owner.

There's nothing stopping someone with more money than sense to spend more than the vehicle is worth to get it back on the road again.

I do however have significant issue with whoever issued this particular
vehicle a warrant after it had been "repaired".

Bung

6477 posts

Uber Geek

Subscriber

#2946327 25-Jul-2022 20:24

AFAIK the Hilux still have a separate ladder chassis. That has to be replaced on the write off along with all the airbags and seatbelts.

Other vehicles have a mix of high tensile steels that probably can't be straightened out and have to be unpicked and sections replaced. The cost of that would soon exceed the value of the car.

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

nickb800

2715 posts

Uber Geek

Trusted

#2946331 25-Jul-2022 20:44

I suspect the tribunal doesn't have the ability to 'write off' (an insurance term) or 'ban' the vehicle. So ordering it to be repaired to the satisfaction of a waka kotahi inspector is the harshest punishment it can order, short of ordering the buyer to be repaid. Of course, it may not be economic to repair the vehicle properly (e.g. new chassis) so the buyer may well get paid out anyway, but that way the vendor gets a chance to remedy (even if it's an impossible task)

Batman

Mad Scientist
29760 posts

Uber Geek

Trusted

Lifetime subscriber

#2946334 25-Jul-2022 21:15

people import written off vehicles and sell them here all the time

"repaired" to certain standard of course

Scott3

3963 posts

Uber Geek

Lifetime subscriber

#2946342 25-Jul-2022 21:54

xpd:

https://www.nzherald.co.nz/nz/damaged-ute-should-have-been-written-off-not-sold-to-another-customer-for-45k/5YEMZEMRDTRBGRLHPD7E33FZCA/

So... I crash my car majorly, to the point it should be trashed, but because I'm not insured, I can go get it repaired and on-sell it ??? What the **** ?

From the description, the vehicle should never have been allowed to go anywhere except the scrap yard. The chassis was damaged FFS. Its not a 10s fix.

Yes, the buyer was stupid to continue using it.

Imagine if they had got into an accident and someone was killed.

I don't get it. I think NZTA are smoking something to allow that vehicle to be repaired "properly" and allowed back on the road when it should've been written off to start with.

The issue is noting to do with the car not being insured.

And everything to do with the substandard repair. (and lack of disclosure of the repair).

Of course, not writing the car off (de-registering it) avoided the stringent check that would have been required to re-register.

Heaps of damaged cars are purchased from damaged vehicle auctions (or imported from Aussie where they will write cars off for reasons like there being too long of a wait at the hail repair body shop), and get fixed up properly and put back on the road.

cshwone

1070 posts

Uber Geek

#2946368 26-Jul-2022 06:23

freitasm:

And how could a business run a car without insurance? Probably not illegal, but stupid.

It wasn't the business that wasn't insured, it was the previous owner

"The new owner was given the crash scene photographs from Waka Kotahi (Formerly NZTA) and a decision released by the Motor Vehicle Disputes Tribunal said that if the vehicle had been insured at the time the insurer would have written it off.

Instead, it was repaired and sold for nearly $45,000."

Bung

6477 posts

Uber Geek

Subscriber

#2946373 26-Jul-2022 07:37

I don't think $45k was a bargain price for a Hilux. Why even consider one with extensive previous damage?

Wheelbarrow01

1723 posts

Uber Geek

Trusted

Chorus

#2946761 27-Jul-2022 01:16

Batman:

people import written off vehicles and sell them here all the time

"repaired" to certain standard of course

The difference here is that vehicles imported with damage are flagged at the border and thoroughly inspected. Sometimes that inspection can be invasive with removal of panels, door skins etc. Cars flagged as damaged at the border cannot be registered until the repairs have been thoroughly documented, completed to an approved standard and signed off by an entry certifier.

With an existing car already registered on the road in NZ, if it is severely damaged, the insurance company will usually write it off and deregister it. While in theory it can be repaired, any such repair still needs to pass a fairly rigorous VIN inspection before it is deemed fit to be reregistered for road use again.

However let's say I moderately or even severely damaged my own car and I was uninsured, but nobody was injured in the crash and the police didn't even attend. I could have the car towed to my repairer of choice and I could ask them to do the cheapest possible repair. Heck, my cousins Willy the welder and Petey the painter could have a stab at it for a few dozen beers. In such a situation I am not obliged to deregister my own car so there will be no official inspection of any repairs made - it just needs to look good enough to pass the next WOF (which is not an invasive check by any means when compared to a border inspection)

In many ways, buying a known damaged/repaired/certified fresh import is a more transparent exercise than buying a 4 year old NZ new model. The NZ new model could have been crashed and repaired but you may never be aware of it. A 10 year old NZ new model could have been crashed several times and you might never know.

Case in point - several years ago I bought a 2 year old Ford Ranger with low mileage. When I flew to Auckland to pick it up, I inspected it fairly thoroughly and found nothing amiss, except that one of the decals on the side of the ute tray was missing. The seller (a middle aged woman) told me the decal had simply fallen off, but she provided a brand new one from the dealership. I asked if it had ever been in an accident - she said certainly not. I didn't think much of it at the time, but on the drive back south I was like hang on, decals on 2 year old vehicles don't just fall off. I came to the conclusion that the ute tray probably took a knock that had been repaired, but I never found any conclusive proof. When I sold it, the buyer got an AA inspection done, and they didn't find any signs of damage repair either. We'll never know for sure - and that is my point!

Bung

6477 posts

Uber Geek

Subscriber

#2946781 27-Jul-2022 07:55

It would be rare for repaired damage to have no signs. Little details like plastic buttons holding wheel arch covers get damaged when prised out. The little bit of overspray somewhere. The washer under a bolt that is rotated since the factory tightening.

The seller in the Hilux case was involved in a similarly repaired Ford Ranger and had to refund $41k. The repairer for both cars was Harvey Collision Repairs. That's who should be investigated.

Daynger

435 posts

Ultimate Geek

#2947027 27-Jul-2022 17:47

Bung: I don't think $45k was a bargain price for a Hilux. Why even consider one with extensive previous damage?

The seller didnt disclose it had been in a accident.

1 | 2