Originally Posted by mac.mogul
If you're able to, buying a salvaged car with flood damage can be a good investment.
I've seen people buy Shelby GT500's that were salvaged because of flood damage. The only thing wrong with them was the electronics. Replace that and you've got a 500+hp muscle car for a fraction of the cost. Do you run the risk of future problems? Yes of course, but buying a 50,000 dollar muscle car at an auction for less than $20k with $2k of repairs seems like a bargain, yeah? You won't be able to get full-coverage insurance, but you may be able to get collision coverage or at the very least liability so even that will be cheaper. You don't pay property tax on salvaged titles either.
Good thinking... if you have cash in your pocket to get liability.
Banks aren't going to give you that kind of money and say "sure, we'll trust you. go ahead and get liability".
And finding full coverage on a performance car like a gt500 you repair yourself... good luck, performance/exotics/specialty they'll usually want an itemized repair list (usually one of their appraisers) and certified repairs (someone they can go back at if a problem arises. I.E. electrical fire). Or they will only cover what you paid for it, no more. Each insurance is different however.
A low dollar car, insurance probably wouldn't have that big of an issue with.
Now if your looking for a cheap track car... game the hell on! strip it and flog the hell out of it