How does a Lemon Law Branded Title Impact Resale Value
I am negotiating to buy a low mileage 2004 auto that was a GM Buyback under the lemon law. The title is "Branded" as a "Manufacturer Buy Back." I think that at least a 15 to 20% price reduction is likely needed to account for the non-clear title.
20% Would be the minimum. Remember, that brand will never go away.
I would avoid this car. There are too many good deals out there on SSRs with clear title. If you buy it, you will have a very difficult time selling it when the time comes. Don't be penny wise and pound foolish
YOU DON'T WANT IT. I JUST TOOK A BATH ON A VETTE WITH NOTATION ON CARFAX "AIRBAG DEPLOYED IN 2000." THAT KILLED ME ON RESALE, DEALERS DIDN'T WANT IT OR THEY WOULD QUOTE PRICE AT 40-60% OF TRADE VALUE.
I'm in NC and because of a law pased a few years ago it seems like half of the cars for sale by owner have a salvage or rebuilt title. This means nothing. Do you have any idea how little damage it takes to total out a 7 or 15 year old car? But a "manufacturer buy back" branded title is something I wouldn't touch with a 50 ft. pole. It was a LEMON!
Not necessarily. Sometimes manufacturers have a problem that later gets resolved, but not before a lot of them get bought back. BMW had this with fuel pumps, and Jeep had this on Grand Cherokee with diesel. Do your homework by checking the forums to make sure the problem is fixed and that the mod has been made on the car you are buying. Yes, you will take a hit on resale, but after a few years it is much less than what you will save now because you're taking a hit on the depreciated value. 20% of 20k is much less than 20% of 40k. Being mechanically inclined, I laugh that people think of cars as "lemons". A car is just a bunch of parts, and unless a car has been wrecked it's no different than all the other cars of the same model. I look for lemons because I can get them cheap.
I purchased a 99 Lexus ES300 in 2001 very cheap. It was MBB. The carfax and letter from the manufacturer stated the issue was starting problem. The manufacturer replaced a starter and a battery. I still own this car best car I ever owned. I'm looking for another one. If u have one call text me at 480-980-4830.
I forgot to mention at purchase the manufacturer extended the warranty another year.
I purchased a 99 Lexus ES300 in 2001 very cheap. It was MBB. The carfax and letter from the manufacturer stated the issue was starting problem. The manufacturer replaced a starter and a battery. I still own this car best car I ever owned. I'm looking for another one. If u have one call text me at 480-980-4830.
I bought a 2012 Toyota Camry SE. I got the entire repair history for it and Toyota extended the warranty for an additional year. I have had absolutely no problems with this car and plan to keep it indefinitely.
I have a manufacturer buy back vehicle. The repair history stated the problem was with the AC. The vehicle has never had any problems...AC works great. I got a 7yr extended warranty (it is a certified pre-owned). I literally did only routine maintenance....oil, tyres, etc. I am leaving the country now and I have to sell it.....problem is only Carmax will buy it..... at HALF the value!! Bottom line is you could have a very good vehicle for a very good price.....BUT be sure you want to keep it!
Buy cheap, sell cheap!
I purchased a 2014 Jeep Cherokee Trailhawk for a reduced price with only 7,000 miles. I knew it was dealer return but I didn't know it had a branded title. The car had an engine light problem. Honestly the car is a POS and I wish I had never purchased it. No one wants to buy it with a branded title, and the dealers want to give you nothing for a trade-in. I would recommend you stay away from a branded title. This car had to be towed to the dealer to fix a transmission issue. Thank god it was under warranty still. I am now getting rid of this car ASAP.
2 months ago I bought a 2014 mustang from a local ford dealer. It was in their shop for almost 3 weeks. I paid 22900 for this car. I decided I was going to trade it in on a new car yesterday and that was when I found out it was bought back by ford and the title is branded as a lemon. Long story short My 24 k car is now worth 14k.. DONT ever buy a branded title car!!!!
This should be illegal. I have Nissan Sentra....replaced transmission at 64k plus three transmission computer boards. This car is a safety issue...don't buy a Lemon car.
If you know how to diagnose and fix the problems then a lemon is a perfect deal. I flip 7th gen Malibu which is typically a buyback lemon and I spent avg of 500 dollars to repair and detail it. 200 of that is new brakes. Profit 2k to 4k per corrected lemon.
