advice on buying a code 3 car

[Rizzo]

Hi pe3ps

I need to get my wife a run around car, kids school, shopping etc

I found a car that is registered as a code 3, price is good and within my budget.
The seller told me its a code 3(stolen and recovered) and all paperwork is in order.

But, from my understanding, a code 3 could also mean it was in a major accident and was written off.

I wouldn't mind a stolen and recovered car, but I wouldn't go near a accident
Damaged car.
Is there any way to tell if its rebuilt or was a stolen car?
Tell car has AAPV numbers stamped in the engine bay

Thanks in advance :ty:

 

[335i MTX]

Word of warning, a friend of mine bought a CTi golf some years back. It was sold as a stolen and recovered car. It had stamps. He paid 30k and the seller moved to Australia. A year later cops pulled him over and asked him to bring the car to the police pound because they suspected the car was stolen and not recovered. He complied only to find out that the car was stolen and recovered but stamped and then stolen from the pound and sold to him. He never got his money back. The car...it eventually got stolen again from the pound!

 

[Maljan]

It is probably not worth the risk. Police clearances are worth their weight in scrap paper these days.

 

[Coisman]

send me an email with all the details of the car in question, I will see on my system whats going on.

[email protected]

PS: a car that was stolen and recovered is NOT a code 3...

 

[Ratslaaf]

Code 3 is a rebuild.

 

[adamr]

A small 101 on codes

Code 3 can be either stolen and recovered or excessive accident damage where the structural integrity of the car has been compromised. Meaning it will never be repairable to oem standards in the eyes of the assessor and will be unfit to be used on the roads. An Insurance company will write off such cars

You can have a code 2 written off car though where the cost to repair is extreme but the integrity of the vehicle is intact. But due to the costs to repair being high (+70% the value of he car) an insurance company for financial reasons chooses to write the car off

I'd stay away from either as the stigma associated with both will always make it a nightmare if ever you want to sell or trade in your car

Code 1: new car
Code 2: used car
Code 3: rebuilt or stolen/recovered

These codes will be on the Natis document

The code 2 is utilised for used cars in general (not accident damaged either). So to tell if a car was written off as code 2 can be a little more difficult. If a Bmw, merc etc any manufacturer with a database usually on their system it will state "uneconomical to repair" ... If this description is seen then you know the car was an insurance write off, yet remaining a code 2 on the Natis . Cars bought from SMD salvage yard are written off "salvage" cars... Code 2 and code 3. (there is also an SMD that sells exotics and not to be confused with the salvage business ) ... So if the cars were sourced from SMD salvage yard be wary that it is a written off car (code 2 and code 3)

A code 3 car will also be difficult and near impossible to finance ... You can insure them still though

Sent from my iPhone 6 Plus

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send me an email with all the details of the car in question, I will see on my system whats going on.

[email protected]

PS: a car that was stolen and recovered is NOT a code 3...

A stolen recovered is a code 3 ... It will have police numbers. In really rare instances the car will not have police numbers it will be code 2 ( so if your car is stolen outside your home and cops nab the guy 5min later knowing its your car, they ain't going to stamp the shit out of the car with police numbers )

Sent from my iPhone 6 Plus

 

[Coisman]

Code 3 is not a stolen recovered car...trust me on this.

 

[Coisman]

...as per my YOU vs LAW thread - LINK: http://www.bmwfanatics.co.za/showthread.php?tid=9447

imp:
Hi guys.

I got this question from Prini:

Prini wrote:

what would be the reasons for a vehicle requiring police clearance?

Now my answer:

SAPS clearance is done when:
1. Car was scrapped by owner for some reason, and needs to go to verify details, becomes code 3, rebuilt.
2. Car was scrapped because of an accident, fixed, and details needs to be verified. car becomes code 3, rebuilt.
3. Car had engine or colour change, and details needs to be verified.
4, Car went over the border without papers, and details needs to be verified.
5. Car was imported from another country, details needs to be verified.
6. Car was stolen, and recovered, details needs to be verified.

Now on point 2, sometimes the insurance sells the car before it was scrapped, and then it can get fixed, but remains a code 2, used status, and not code 3, rebuilt status.

Hope that makes it clear. :thumb:

Coisman,

Can you drop us your view on Code 1,2 and 3 vehicles ?

imp:

Code 1 - new, so you da first owner... sweet so the car is "new"
code 2 - you are the second, 3rd, 4th...etc owner, so the car is "used"
code 3 - car was scrapped, either because of an accident, or the vehicle was taken out of the country, or the owner decided to scrap it,
so code 3 is then "rebuilt" status.

hope that's what you wanted to know :thumbsup:

imp:
ok, so just confirmed with Wilhelmina at Pretoria Licence office.
Stolen recovery stays code 2, but obviously the car has to go for saps clearance and roadworthy.
The only time a car becomes code 3, is if it's classed as a rebuilt, so you crashed it, or scrapped it,
and now you need to register it... code 3.
Hope that's cleared up. :thumb:

 

[adamr]

Code 3 is not a stolen recovered car...trust me on this.

That must have changed then? ... Cause my dad was in the trade and always every now and again a stolen car would appear with police clearance and code 3 status ... So you saying a car with police numbers stamped on the car will have a code 2 status ????


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[Coisman]

Code 3 is not a stolen recovered car...trust me on this.

That must have changed then? ... Cause my dad was in the trade and always every now and again a stolen car would appear with police clearance and code 3 status ... So you saying a car with police numbers stamped on the car will have a code 2 status ????


Sent from my iPhone 6 Plus

Read my post above :thumbsup:

 

[adamr]

Code 3 is not a stolen recovered car...trust me on this.

That must have changed then? ... Cause my dad was in the trade and always every now and again a stolen car would appear with police clearance and code 3 status ... So you saying a car with police numbers stamped on the car will have a code 2 status ????


Sent from my iPhone 6 Plus

Read my post above :thumbsup:

I think you are slightly wrong regarding stolen recovered ... If the car has police numbers meaning there are physical markings on the car with police numbers/references car will be a code 3. Unless you saying that a car with police numbers will still be a code 2????? Def not from my experience

Coisman are you In the motor trade? Unless things have changed recently

Yea in some instances where the car was stolen and no police numbers stamped car will be a code 2. This I have personally witnessed and seen ... Like I said my dad has been in the industry for years and there have been a few occasions where he was offered stolen recovered cars etc

A car deemed uneconomical to repair is a written off car and will still be code 2. Insurance wrote it off and sold it to a salvage yard ... It's still structurally fit but just too expensive to repair. I know this for a fact, as I am busy with a legal mater on exactly this at the moment (have the insurance policy for exactly this if you want .... Can send to you)

Edit: I could be wrong ... Will research this myself and make sure on the stolen recovered bit




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[Coisman]

I work for Metro Police bud, and trust me, a car stamped with a number at a SAPS clearance is not a Code 3.

Its a code 3 when it was scrapped, and re-registered.

Most cars having to be re-registered, has to go for SAPS clearance, and this might be where you are getting the idea of it having a code 3 status.

The only time the SAPS stamps a new number is when the original VIN is tampered with (according to what I know)

The matter concerning cars sold at auctions or from Insurance companies while they were written off by the insurance, is also a serious matter, and I get ALLOT of cars that I check on Enatis, that have in fact been in serious accidents, written off, but not registered as Code 3, repaired, and sold on as Code 2.

My moms Corolla is such a car...

 

[adamr]

I work for Metro Police bud, and trust me, a car stamped with a number at a SAPS clearance is not a Code 3.

Its a code 3 when it was scrapped, and re-registered.

Most cars having to be re-registered, has to go for SAPS clearance, and this might be where you are getting the idea of it having a code 3 status.

The only time the SAPS stamps a new number is when the original VIN is tampered with (according to what I know)

The matter concerning cars sold at auctions or from Insurance companies while they were written off by the insurance, is also a serious matter, and I get ALLOT of cars that I check on Enatis, that have in fact been in serious accidents, written off, but not registered as Code 3, repaired, and sold on as Code 2.

My moms Corolla is such a car...

Thanks for this ... Yeah the vin tags were in all instances tempted with, guess insurance would have scrapped car and hence it receiving the code 3 status ... I will go with you on the code 2 : stolen recovered (if insurance hasnt scrapped it)


on written off cars found the policy:

"4.2.2 Written-off motor vehicles
4.2.2.5 Used (code 2), but uneconomical to repair
4.2.2.5.1 General rules
Motor vehicles that, according to the assessor, are uneconomical to repair (e.g. damage exceeds 60% to 70% of the value of the motor vehicle) and the insurance company decides not to repair the motor vehicle, and:
a) Have structural damage that is not severe;
b) Can be repaired to a safe and roadworthy state; and
c) Can be repaired to the specifications of the original manufacturer,
can be declared a code 2. In such cases, the insurer should update the HPI register with a note to confirm that this vehicle was involved in an accident
Code of Motor Salvage : 2012 Page 15
and was uneconomical to repair, if possible. The parties agree to collaborate to establish a workable process in this regard, if possible and financially viable."

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[Coisman]

The problem is that the insurance companies do not follow up, and the people that fix up, and sell on these cars, do not devulge that these cars were in fact in serious accidents and repaired. :RedNo:

 

[adamr]

The problem is that the insurance companies do not follow up, and the people that fix up, and sell on these cars, do not devulge that these cars were in fact in serious accidents and repaired. :RedNo:

on the HPI systems and mplan system or other car databases it will state "uneconomical to repair" ... car is rightfully a code 2 car as it chassis wasnt bent for example, or other damage deeming it unrepairable to oem spec no matter how much you spend to repair the car. so no funny business there in car being a code 2.

The greater public though needs to just know that as soon as they see those words "uneconomical to repair" it means the damages were so expensive that the insurance company chose not to repair the car but sell it to a salvage yard. someone else bought it and repaired it ... but it still was an insurance write off (meaning they took it off their books)

 

[Coisman]

The problem is that the insurance companies do not follow up, and the people that fix up, and sell on these cars, do not devulge that these cars were in fact in serious accidents and repaired. :RedNo:

on the HPI systems and mplan system or other car databases it will state "uneconomical to repair" ... car is rightfully a code 2 car as it chassis wasnt bent for example, or other damage deeming it unrepairable to oem spec no matter how much you spend to repair the car. so no funny business there in car being a code 2.

The greater public though needs to just know that as soon as they see those words "uneconomical to repair" it means the damages were so expensive that the insurance company chose not to repair the car but sell it to a salvage yard. someone else bought it and repaired it ... but it still was an insurance write off (meaning they took it off their books)

Yea...with original parts.

The problem is people buy these cars, and fix them dead cheap with 2nd hand parts, and sell them on.

Trust me, I have rescued more than one Fanatic by running a registration number for them on Enatis and finding that it was in fact an Insurance write off car, that was repaired cheaply, but offered at full retail price. :thumbdo:

 

[adamr]

The problem is that the insurance companies do not follow up, and the people that fix up, and sell on these cars, do not devulge that these cars were in fact in serious accidents and repaired. :RedNo:

on the HPI systems and mplan system or other car databases it will state "uneconomical to repair" ... car is rightfully a code 2 car as it chassis wasnt bent for example, or other damage deeming it unrepairable to oem spec no matter how much you spend to repair the car. so no funny business there in car being a code 2.

The greater public though needs to just know that as soon as they see those words "uneconomical to repair" it means the damages were so expensive that the insurance company chose not to repair the car but sell it to a salvage yard. someone else bought it and repaired it ... but it still was an insurance write off (meaning they took it off their books)

Yea...with original parts.

The problem is people buy these cars, and fix them dead cheap with 2nd hand parts, and sell them on.

Trust me, I have rescued more than one Fanatic by running a registration number for them on Enatis and finding that it was in fact an Insurance write off car, that was repaired cheaply, but offered at full retail price. :thumbdo:

Lol true ...


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[boost3d]

i would stay away, firstly a code3 vehicle can rarely be financed and neither will you get comprehensive insurance on the car....that basis would make me not want to own one....