Previously, I outlined the ‘Written off Vehicle Register” (WOVR).
However, prior to Xmas I noticed the start of an industry led campaign intended to not only demonise the WOVR (apparently the birthplace of all ‘lemons’), but to also push up car prices at the virtuous dealerships and to help fudge the history of some of their stock.
To Recap WOVR
In Australia, the primary purpose of the WOVR is to stop vehicle theft and ‘rebirthing’. WOVR entries appear on a search of the Personal Property Securities Register (PPSR) or REVS certificate. Dealers must supply this search to a vehicle buyer.
Put simply, vehicles are ‘written off’ by insurance companies when they are deemed, by the insurer, to be uneconomical or too inconvenient for the insurer to repair. Commonly, the insurer will pay the vehicle’s owner the estimated trade-in value of the vehicle and will then minimise their own loss by selling the vehicle at auction.
There are two categories:
1.
‘Statutory Write-offs’; they can never again be re-registered or used on Australian roads. (NB “on Australian roads”!!
).
2.
‘Economical Repairs’, most of these are bought, depending upon the degree of damage, either by wreckers or used car dealers. It is not uncommon for vehicles that only require mechanical repairs or theft recovered vehicles to be included in this category. Generally, they are all recorded as a “collision”. They are all required to pass a separate Safety Certificate (RWC) and Vehicle Identification Report before they can be re-registered.
In NSW, all write-offs are ‘Statutory’ and cannot be re-registered unless the existing registered owner makes arrangements with the insurer to retain the vehicle.
Consequently, NSW dealers are buying Queensland and Victorian write-offs for resale back in NSW. Queensland auction prices have increased accordingly.
Cautionary notes for the buyer.
As a rule of thumb; an insurer will repair a more seriously damaged vehicle if it is reasonably new or of high value.
These repairs will never appear on the WOVR. However, vehicles can rapidly depreciate; therefore, a five year old car with relatively minor damage may be listed on the WOVR.
If a vehicle
DOES NOT appear on the WOVR, the following scenarios are possible:
The vehicle has never been damaged,
The vehicle was damaged but repaired by an insurer,
The vehicle was damaged but repaired by an owner at his/her cost,
The vehicle was never insured,
The vehicle was repossessed by a finance company,
The vehicle is at least 16 years old.
Good Luck G.
