Used: How to Avoid Salvage Vehicles

Sept. 21, 2009 — -- In this economy, people are buying three times as many used cars as they are new ones. Used cars can be a great value, but there are also dangerous rebuilt wrecks on the market.

Every year more than two and a half million salvage vehicles are sold to unsuspecting customers. Some have hidden corrosion from floodwaters, so buyers lose thousands of dollars when they try to resell them. But worse than losing money, you could lose your life.

Eighteen-year-old Bobby Ellsworth died when the rebuilt salvage vehicle he was riding in crashed. An auto body shop had stuffed paper where the airbags were supposed to be, then glued the dashboard back together and painted over it. While state laws require the most badly damaged vehicles to be junked, the rest are patched up and put back on the road.

To see if consumers have the knowledge to spot salvage vehicles, "Good Morning America" teamed up with Carfax, the vehicle history report pioneer, to put people to the test.

"GMA" lined up five cars at a Virginia mall. Four of them were solid vehicles, but one had been in a serious front end collision and patched up.

Dozens of passerbys turned out to try their hand at the test.

Some of the testers took normal wear and tear, like small scratches, for something worse. But some spotted key clues like paint overspray, body panels that were not perfectly flush and front windows that did not have the manufacturer's name on them -- an indication that they were replacements.

After all was said and done, of the 25 people that took the test, only five correctly spotted the damaged car.

Used Car Buyers Need Help From a Professional Eye

"Consumers don't have the experience that people like Carfax and mechanics have with used cars," said Carfax spokesman Larry Gamache. "You have to consult with the experts before you put your hard-earned money down on a used car."

A vehicle history report on the car would have revealed that the damaged car was a rebuilt salvage vehicle, but checking the report is not enough. The car itself should be checked out by a professional.

When a collision repair expert took the test, he immediately spotted the damaged car from the flaws in the body work like paint tape lines, uneven hood gaps and a bumper that was not attached properly.

"Sloppy work on the surface can also indicate sloppy work below the surface," said Denny Lee of Koons Collision Repair Center.

All the cars used in the "GMA" challenge were perfectly legal to sell, including the damaged ones, but that doesn't mean consumers should want to buy them. That's why car hunters need to get the vehicle history report and have used cars checked by a professional before they hand over their money.

Once you sign on that dotted line, the cars is yours. Contrary to popular belief, the law does not give you three days to return a used car -- or any car -- after you buy it.