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Bought a model Y that I thought had clean title and found out it was salvage
- Thread starter Hormold
- Start date
davewill
Active Member
Glad you hear you came to an outcome you can live with. In the end, the whole mess still seems to be Tesla's fault. By not branding the title when they totaled it, or reporting it to CarFax, etc.., they opened the door for the dealer to either unknowingly sell it as a clean car with warranty, or to fraudulently do so.
I know one thing that would help is some way to query the warranty and Supercharging status of a car in Tesla's database. That way, someone could attempt to check this either before buying, or at least shortly after, maybe in time to unwind the deal.
I know one thing that would help is some way to query the warranty and Supercharging status of a car in Tesla's database. That way, someone could attempt to check this either before buying, or at least shortly after, maybe in time to unwind the deal.
exxxviii
Member
This was almost 100% the dirty dealer's fault. There is a ton of detail above, but the gist is that Tesla sold the car at a salvage auction, and the salvage auction registered it as salvage with NMVTIS. The dealer knowingly bought the car from the salvage auction that was declared as salvage and took advantage of the timing gap from when they got the car to when it showed up as salvaged in the registries. The only thing that IAAI might have done better is register the car as salvage with CA DMV when it was retitled with the dirty dealer. But that would not have saved the OP due to data lag.
I hear a lot of different opinions from different people. Even on the Tesla support phone.
FSD works perfectly on "unsupported" cars! No problem, no restrictions. Thanks Tesla.
FSD works perfectly on "unsupported" cars! No problem, no restrictions. Thanks Tesla.
Hey man, can I get in touch with you? Literally the SAME EXACT THING happened to me and 3 others that I have come to know. This is not the dealers fault but Teslas.
We need to hold Tesla accountable for this shady practice. Just so you all know—IAA does not auction salvaged cars primarily—they have a big inventory of clean titles which TESLA brings to them. I have records of it all. They don’t salvage any of their cars under their own insurance knowIng that it’ll bring a higher bid price if auctioned as clean title. SHADY AND GREEEDY.
If you read this entire thread, you would see that it was the dealer that was shady (and in fact went out of business). As for IAA, post #29 in this thread has the IAA disclaimer:
================================
16. NMVTIS REPORTING: VEHICLES LISTED FOR SALE AND SOLD AT IAA MAY HAVE BEEN REPORTED TO THE NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM (NMVTIS) AS REQUIRED BY APPLICABLE LAW. BUYER ACCEPTS ALL RISKS ASSOCIATED WITH PURCHASING VEHICLES AT IAA ARISING OUT OF OR RELATED TO ANY NMVTIS REPORTING BY IAA OR IAA’S VEHICLE PROVIDERS, INCLUDING THAT VEHICLES SOLD WITH A CLEAR TITLE MAY APPEAR AS “JUNK/SALVAGE” IN SUBSEQUENT REPORTS DUE TO NMVTIS REPORTING. BUYERS MAY BE SUBJECT TO NMVTIS REPORTING REQUIREMENTS WHEN PURCHASING CERTAIN VEHICLES. FOR MORE INFORMATION ON REPORTING REQUIREMENTS, EXEMPTIONS, AND HOW TO OBTAIN A NMVTIS REPORTING ID VISIT
==================================
So, yeah this is the issue of the purchaser who chooses to purchase from an auction with such a disclaimer.
stopcrazypp
Well-Known Member
As others mentioned, in this case it was the dealer being a scammer (which is probably why they went out of business). I noticed in a lot of these cases the dealers never provide all the auction paperwork. I suspect the auction paperwork itself may have a section that indicates the car may be marked as salvage in the database regardless of clean title status or not when sold. If that was disclosed, Tesla did nothing wrong. Instead the dealers tends to point the buyer to Tesla or gives irrelevant/misleading paperwork like the original window sticker.
EVer Hopeful
Active Member
I always wonder why people do things like this. With a little more effort, they could probably have built a thriving business that would have generated income for many years, but instead . . .
How is it the dealer when Tesla is the seller? Tesla insurance is not following insurance laws and salvaging these cars in order to generate a higher asking price at an auction. IAA is one avenue and is not the sole avenue. There’s 2 guys that have bought at Adesa and Manheim auctions as well which is clear title cars that dealers buy from.
It’s the same *sugar* if say your mom rams you in the driveway and you don’t report it to police or dmv. She may have salvaged your car but no one will ever know. Tesla is essentially doing the same, selling these cars that any other insurance company would salvage but they don’t due to being greedy bastards.
The dealership could have ran out of business for a million reasons and I can guarantee you it’s not this one lol.
stopcrazypp
Well-Known Member
You are assuming the dealers are not aware of the car being potentially marked as salvage in the database, when it's fairly likely they had that wording in the auction paperwork but never disclosed that to the end user. Again for these cases (there are similar ones about FSD options being removed) the dealers tend to not supply original the auction paperwork for review. If you can find some examples that would be insightful. If the auction paperwork truly never disclosed then maybe there would be a case.
Also, I wouldn't be so sure the cars are all under Tesla insurance. There is a possibility it was under a different insurance company. For example I checked that when leasing with Tesla, you can use your own insurance company.
exxxviii
Member
I recommend you reread this entire thread. It might help you focus on the right place and find resolution.
This point was addressed ad nauseum. IAAI is a salvage auction that sells some non-salvage vehicles. All their inventory carries a huge caveat emptor that cars may be reported salvage after the sale. Buyers know this and purchase appropriately.
Again, read the whole thread. There is no indication that these cars were insured at all, so your assumption about not following law is just speculation. More likely is that Tesla is self-insured and sold the cars through IAAI and had IAAI declare them salvage and reported to NMVTIS at time of sale.
I mentioned the nearby ADESA and Manheim auctions in a few of my prior posts. You are correct that cars with clear titles are typically sold there and salvage cars are typically sent to IAAI. My point was that Tesla could easily have sent their cars to Manheim or ADESA, had the auctions recondition the cars, and sold them for far more with clean titles. But, for reasons we do not know, Tesla is selling them as salvage at a salvage auction and taking a massive hit on value. Tesla decision to salvage their lightly damaged cars is probably costing them $5K to $10K per unit.
And it looks like a few dirty dealers (and some unsuspecting amateur buyers) are getting the cars and misrepresenting them to their consumers.
My comments and opinions come from my background working with dozens of auto auctions across US, Canada, and UK. I am familiar with almost every aspect of auction operations. I am not an expert in title management, but I have worked with enough lawyers and title managers at auctions and auto dealerships across the United States to have a pretty good understanding of how titling is handled.
Trust me when I tell you that you getting angry at the wrong bad guy.
brainhouston
Active Member
IAAI is "insurance" auto auction lol
Anytime a car goes thru insurance it'll get salvage title, expecting anything different is just naive...
If u did manage to get a clean title, consider urself lucky
Problem with Teslas, is the separate database for SuC/warranty, they don't follow DMV/title, they tag cars even by scouting internet, been reported many times.
i'm sure that was considered in their decision...
just my guess
Anytime a car goes thru insurance it'll get salvage title, expecting anything different is just naive...
If u did manage to get a clean title, consider urself lucky
Problem with Teslas, is the separate database for SuC/warranty, they don't follow DMV/title, they tag cars even by scouting internet, been reported many times.
but they will probably get that money back (or at least not lose more later) in repairs in the long run since they cancel warranty on salvage cars
i'm sure that was considered in their decision...
just my guess
Not angry at all bro’s, it’s just a shitty situation overall lol.
It’s just a simple game of corporate greed. Tesla service employees have urged me to take up a lawsuit and they would be happy to be subpoenaed. The dealer I bought from offered to buy the car back, provided all auction paperwork, and even called service on my behalf on several occasion so I know for a fact it’s not the dealer.
Now to the point of IAA disclosing that cars may be reported as salvage post sale—this is not that situation. My car has a clean NMVTIS and I can easily sell it to Carmax and any dealer and chances are they’ll never know.
It’s a local team of employees out of Fremont that came up with the brilliant idea of not salvaging these vehicles because their office would not meet revenue targets (service managers words from Fremont service center). Instead, they are selling it as clean titles in these auctions and are taking away warranties.
You guys can search Tesla on IAA and filter by clean title. The ones that say “no warranty, fsd, supercharge” are Tesla cars. Some have minimal damage but some should be SALVAGED like a mf’er lol. If they salvage these cars, they’ll be lucky to command 35% of the value—but if they sell it as clean title, they’ll get over ~50-60%.
exxxviii
Member
You should have accepted the dealer's offer.
A dealer buying from IAAI for sale to consumers is probably dirty.
IAAI's General Disclosure: "NMVTIS reporting: vehicles listed for sale and sold at IAA may have been reported to the national motor vehicle title information system (NMVTIS) as required by applicable law. Buyer accepts all risks associated with purchasing vehicles at IAA arising out of or related to any NMVTIS reporting by IAA or IAA’s vehicle providers, including that vehicles sold with a clear title"
If your dealer bought a Tesla with the disclosure "no warranty, FSD, supercharger," and did not disclose that to the end consumer, they are nasty.
If I understand your posts, you think it is shady that Tesla is selling cars at a salvage with an "as-is, no warranty" type disclaimer, and taking a loss on those cars? What would have made those deals up-and-up to you? From what I have seen people (and you) post, everyone followed the rules and processes properly.
You need to start your own thread, in this subforum, since your situation has nothing to do with this thread.
Re reading this thread almost reinforces my belief that if you are going electric buy new,
Then again look at the depreciation laid on some Fisker buyers of new Ocean's or Teslas sold before the huge price drops.
You pay your money and takes your chances...
Then again look at the depreciation laid on some Fisker buyers of new Ocean's or Teslas sold before the huge price drops.
You pay your money and takes your chances...
Copart or IAAI auctions might list a "seller" for your reference but the bill of sale comes from Copart or IAAI if you're the licensed buyer of their vehicle.
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