Code 3 vehicles sell for a lot less than ‘ordinary’ cars. But, is it a good idea?

The four status codes for a motor vehicle, as defined by Natis are:

Code 1 - New
New vehicles delivered by a dealer to the first owner.

Code 2 – Second-Hand
Used vehicles with one or more previous owners.

Code 3 -Permanently Unfit For Use
Code 3 vehicles are Code 1 or Code 2 vehicles that have been involved in an accident, which, according to the insurer, is so bad that it is not worth repairing.

To them, the cost of fixing the damage would amount to more than the car’s value at that particular time.

Code 4 - Permanently Demolished
A vehicle falls into this category when the chassis of the motor has been:

a.) Compacted;
b) Compressed;
c) Melted;
d) Destroyed; or
e) Damaged to such degree that it cannot be made roadworthy.

Why, then, sell/buy a Code 3 car?
Just because the insurer has written the vehicle off, doesn’t necessarily mean that another person/institution can’t fix it; or sell it again.

If (after the damage has been restored) the previously ‘unfit’ car completes a roadworthiness examination, it is then legally allowed to be driven again.

Is it worth buying a Code 3 car?

Les Stephenson of Wheels24 says: Yes and no... ‘Yes’, in that the price will be very low, and ‘no’ in that the cost of repairs plus the cost of the damaged car might be more than simply buying an equivalently aged, legal and on-the-road version of the same vehicle. Unless the buyer is a car enthusiast with mechanical leanings or a close association with a group of similarly minded experts or a business that repairs badly damaged cars, do your sums very, very carefully.

Contrary to popular belief, it IS possible to insure a Code 3, but not for more than 60 or 70% of normal market value.

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So, would you buy a Code 3 vehicle?
  By: Meagan Karstens