Undertaking a write-off check on a used car is crucial before you buy. But why? This Q&A blog provides a complete guide to write-offs outlining everything drivers need to know.
Click on the links below to navigate to the answers:
- What is a write-off?
- Why is it important to check?
- How do I check to see if a car has been written off?
- What categories of write-off are there?
- What happens when a write-off occurs?
- How common is it to find a written off car?
- Who records write-offs in the UK?
- What happens if a written off car is financed?
- What if I want to buy a written off car?
- What are salvage and scrap checks and how do they relate to write-offs?
- What other important checks should you undertake before buying a used car?
What is a write-off?
It’s where a vehicle has been in an accident that leaves it unrepairable, or costs the insurer more than the vehicle’s value to have it repaired. The process of writing off a vehicle is carried out by the insurer of the vehicle.
Why is it important to check?
Because a repaired written off car will be worth less than the market value of equivalent vehicles that haven’t been. More seriously, a written off car may not be legally roadworthy and might be unsafe to drive. So you could end up with a car worth less than you paid for it and it may be dangerous to drive.
How do I check to see if a car has been written off?
Purchase an award winning Total Car Check Gold Check by entering the vehicle’s registration number into our website or app. This will tell you if the vehicle was previously written off or not.
What categories of write-off are there?
If a vehicle is significantly damaged as a result of an accident then an insurer will appoint an assessor to come and inspect the vehicle. If the vehicle is declared a write-off then it will be categorised as one of the following:
Category A – Cannot be repaired
The entire vehicle has to be crushed and no parts can be salvaged.
Category B – Cannot be repaired
The body shell must be disposed of but other parts can be salvaged.
Category C – Repairable
The vehicle can be used again if it’s repaired to a roadworthy condition. But the cost of repairing it alone exceeds the vehicle’s value.
Category D – Repairable
The vehicle can be used again if it’s repaired to a roadworthy condition. The repair costs along combined with other charges, such as transportation, exceed the value of the vehicle.
Category N – Repairable with only non-structural damage
The vehicle can be repaired and with the damage being only non-structural in nature.
Category S – Repairable with structural damage
The vehicle can be repaired and with the damage being structral in nature.
What happens when a write-off occurs?
The insurer pays the owner the value of the damaged vehicle. This is worked out by an assessor. The insurer then becomes the legal owner. If it is repairable the original owner can elect to buy the car back from the insurer and get it repaired and restored to a roadworthy condition. Alternatively the car may be scrapped, which is required where it cannot be repaired.
How common is it to find a written off car?
Unfortunately it is common. Almost 400,000 vehicles each year are written off by insurers. Approximately 25% of the used cars checked by Total Car Check have a write-off history.
Who records write-offs in the UK?
It is a legal requirement for all write offs to be reported to the Driver and Vehicle Licensing Agency (DVLA) in the UK. However, most insurers record write-offs in a central industry database called the Motor Industry Anti-Fraud and Theft Register (MIAFTR). It is so named because this database also records instances of fraud and theft reported to, or identified by, insurers. MIAFTR is a database that Total Car Check and other vehicle history check providers screen when running vehicle history checks.
What happens if a written off car is financed?
If your car is subject to a secured outstanding finance agreement such as Hire Purchase, Conditional Sale or Personal Contract Purchase (PCP) then it is owned by the finance provider. In a write-off scenario the finance provider will be paid by the insurer for the damaged value of the car. The finance provider will then deduct the funds the insurer pays from the outstanding finance balance. You will then be required to settle the remaining debt owed with the finance company.
What if I want to buy a written off car?
You may be in the market for buying a written off car. After all they are cheaper to buy and can be perfectly safe and reliable so long as they have been repaired to a high standard. Cars subject to Cat C, D, S and N write-offs can be repaired, but not Cat A and B.
Before you buy make sure the seller provides you with paperwork outlining all of the repairs undertaken. The vehicle will have to be re-registered with the DVLA, undertake and pass an MOT and will be subject to having a Q registration plate. You should also contact an insurer to get a quote prior to purchase as written off cars are usually more expensive to insure.
What are salvage and scrap checks and how do they relate to write-offs?
Sometimes damaged cars are not written off by insurers. This might be because insurers are unaware a vehicle has been in an accident. Quite often these vehicles will find themselves entering into salvage auctions, or they may be sold for scrap or crushed at a scrapyard. Total Car Check obtains data which helps to confirm if a vehicle has gone through either of these scenarios. You should be wary of any vehicle that we report as being seen in a salvage auction. If a car you are checking has been recorded as being scrapped then this should cause even more alarm, because it potentially means the vehicle has been destroyed and been brought back to life again. Although this is pretty rare.
What other important checks should I undertake before buying a used car?
We have a page dedicated to outlining the most important data checks you should undertake. But don’t stop there. Make sure you go and view and inspect prospective vehicles yourself and test drive them. We have produced a detailed used car buyer guide which outlines all the steps you should consider.
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