Hello, sold my 10 XK a couple weeks back and have started my search for a F Type. My preferred budget has me looking at some 14 V8S models, with a couple 15 and 16 R coupes creeping into the mix. I have come across a few "Lemon Buyback" cars out there. Based on the Carfax, some appear to have some miles put on them since the "buyback". I've had salvage rebuilt title vehicles before, so been there and done that, going in with eyes wide open. Assuming issues have been addressed (a very big if!), and the lingering resale value concerns, whats a reasonable discount off book to factor in?

 

My first F-Type was a ‘16 base convertible, which was a buyback I purchased from an Atlanta Jaguar dealer. The reason for the buyback was some insignificant issue with the infotainment that had been easily rectified. So I benefited with the discount and never had an issue with the vehicle until I attempted to trade it about 15k mi later for another F-Type. Several dealers, both Jaguar and other, would not take a trade on a branded title as a matter of policy. Finally found a Jaguar dealer who would at a significant discount. Ultimately, I returned to the selling dealer, who gave me the best trade towards an ‘18 R convertible. So, although a vehicle may have been bought back by the manufacturer for the most insignificant of reasons, assume that your branded title will be a scarlet letter when you later go to trade, unless your dealer specializes in buybacks, as did mine. Whatever you saved up front, count on your trade value being reduced by at least the same amount and probably more would be my rule of thumb.

 

I have been curious about this as well for a few years now. Not too many years back banks wouldn't loan money against a branded title or at least salvage title. Now in recent history I see a plethora of cars for sale with salvage titles and they seem to be asking roughly 80% of the cars value at the time. I don't see the logic in buying a branded title car at 80% of value let alone not knowing what you are getting into nor how badly you will take a hit down the road. Does anyone know what seems to have changed in the market to have so many branded titles?

 

One could seriously consider the purchase of a "buyback" under the following two conditions:
1. You have a complete understanding if the underlying reaaon(s) for the the buyback, as well as the associated risk.
2. You do not intend to sell the vehicle for a decade or more.

 

Well, as to #1, with a manufacturer’s buyback resulting in a branded title, you should receive full documentation as to reason for buyback and remedial steps taken. At least that was my experience with Jaguar. As for the sort of branded title that is advertised something like the following: “Water damage completely repaired, runs perfectly, sold AS IS, warranty available at extra charge,” etc., AVOID LIKE THE PLAGUE.

As to #2, it’s impossible to generalize given market conditions etc. On a mfr buyback for a trivial reason, the upfront savings may justify eventual resale hit.

 

Prior to covid market craziness, I figured a hit (no floods) and rebuilt salvage car at around 50-55% of a straight car with quality documentation and results, otherwise not worth it. With the overall used market drifting down back to reality, is it realistic to shoot for a normally priced $45-50k car for $33-$35k?