When a total loss isn’t the end: Why drivers buy back totaled cars
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When a car is deemed totaled, it doesn’t always mean it's the end of the road. Some owners are choosing to buy back their cars, giving them a second life.
Written byShivani Gite
Shivani GiteContributing Writer
Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. When not writing, you can find her reading a book or watching anime.
Laura Longero is an insurance expert with more than 15 years of experience educating people about personal finance topics and helping consumers navigate the complexities of auto insurance. She writes and edits for QuinStreet’s CarInsurance.com, Insurance.com and Insure.com. Prior to joining QuinStreet, she worked as a reporter and editor at the USA Today Network.
Laura Longero is an insurance expert with more than 15 years of experience educating people about personal finance topics and helping consumers navigate the complexities of auto insurance. She writes and edits for QuinStreet’s CarInsurance.com, Insurance.com and Insure.com. Prior to joining QuinStreet, she worked as a reporter and editor at the USA Today Network.
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When a car is labeled as totaled, most people think it’s headed straight for the junkyard. However, some car owners still want to buy back their totaled cars.
An insurance company considers a car totaled if the repair or replacement cost is more than its actual cash value.
However, many owners believe their car still has value — either because it runs fine, they’re attached to it, or they can make some money by selling its parts. This shift in thinking has led more people to question whether totaled indeed spells the end of the road.
71% of owners buy back totaled cars because they’re still roadworthy
Buying back a totaled car from an insurance company is a decision that you might face. The editors at CarInsurance.com conducted a poll to determine what drives consumers to repurchase a car deemed a total loss.
Most respondents – 71% – said they would buy back their totaled car because it still runs fine. This response suggests that many car owners view their vehicles as more than just a means of transportation – they are functional, reliable and worth salvaging, even if they have been in an accident.
Emotional attachment drives the majority of car owners to buy back their totaled cars
Not everyone is driven purely by practicality. Around 21% of respondents said they reclaimed their totaled cars because of emotional attachment. Maybe it’s the first car they purchased with their money or the vehicle they brought home a new baby. Sentimental value can be challenging to measure in dollars and cents, and for these owners, the idea of letting their vehicle go to a scrap yard is unthinkable.
Turning a loss into a profit: How 7% of car owners use salvage buybacks to cash in on parts
Roughly 7% of poll respondents see an opportunity to make money by buying back their totaled vehicles. Even if the car itself can’t be driven safely without significant repairs, many of its parts — like the engine, transmission, seats or electronics — still hold value.
These owners sometimes sell usable parts online or to local retailers, earning back more than they might have gained from the insurance payout alone. This approach requires time, effort and some savvy, but parting out a damaged car can be profitable.
Is buying back your totaled car worth it? What our experts say
When your car is totaled, you may decide to buy it back from your insurance company. To help guide you, we’ve gathered expert insights on whether this is a smart financial and practical move.
Lauren McKenzie
What are the key factors to consider before deciding to buy back a totaled car?
When deciding whether to buy back a totaled vehicle, it is essential to evaluate the insurance company’s settlement offer against the buyback cost. Additionally, consider the estimated repair expenses while keeping the vehicle’s market value in mind—comparing the repair costs to both the car’s pre-accident value and its potential resale value after repairs.
Structural integrity and safety concerns should also be carefully assessed, including damage to the frame, airbags, and other critical components. Vehicles with a salvage title may have reduced safety and reliability, and securing insurance coverage for them can be more challenging or costly.
How can car owners assess whether buying back their totaled car is financially viable?
To determine if repurchasing a totaled vehicle is financially viable, owners should weigh the insurance payout against the buyback cost, as well as the anticipated repair expenses against the vehicle’s projected market value post-repair.
Lauren McKenzie, insurance broker/agent with A Plus Insurance
What are the key factors to consider before buying back a totaled car?
If you’re thinking of buying back your totaled car, remember that it is all about cost-benefit. You should get trustworthy estimates on what it will cost to repair the vehicle. These costs can get quite expensive – especially for the drive train, frame and body damage.
Make sure the investment will be worth it after having to pay for everything needed to bring the vehicle back to the desired condition. Remember, your car will have a salvage title after you repair it, which usually significantly decreases the resale value – and might make obtaining car insurance difficult or more expensive.
How can car owners assess whether buying back their totaled car is financially worth it?
You can create a spreadsheet and estimate the costs to bring the vehicle back up to standards. Depending on the reason the vehicle was totaled, it may be worth it. If all the damage is cosmetic, for example, because of a hail storm, it may be worth buying the car back if you don’t care that it has hail damage.
On the other hand, if the car has significant mechanical damage, be sure to factor in the cost of a new engine or transmission. Before making a decision, look at online listings like Craigslist and Facebook Marketplace and see what other similar vehicles with salvage titles are selling for. By creating a spreadsheet model of all repairs you think may be needed, you can estimate whether the benefit outweighs the cost.
James Brau, Joel C. Peterson Professor of Finance at Brigham Young University.
Although most people think of a totaled car as being done for, many owners choose to buy their cars back. Some do it because the car still works well, others have a strong emotional connection and some see it as a way to make money by selling the car’s parts.
Buying back a totaled car can make sense if you’re willing to put in the work, but it all depends on how much value you place on the vehicle, whether it’s for sentimental reasons or the potential to earn from it.
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Meet our editorial team
Shivani GiteContributing Writer
Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. When not writing, you can find her reading a book or watching anime.
Laura Longero is an insurance expert with more than 15 years of experience educating people about personal finance topics and helping consumers navigate the complexities of auto insurance. She writes and edits for QuinStreet’s CarInsurance.com, Insurance.com and Insure.com. Prior to joining QuinStreet, she worked as a reporter and editor at the USA Today Network.
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