Don't get caught buying a write-off or a stolen car

Buying a used car doesn't have to be the costly undertaking it once was. Police, registration authorities and consumer protection agencies are far more vigilant now, and the introduction of ISO-approved Vehicle Identification Numbers (VINs) has reduced much of the potential for dodgy dealings in the automotive trade.

Nevertheless, any used-car buyer is well advised to obtain carsales vehicle history report before committing his or her hard-earned cash (or even worse, the bank's cash) to a vehicle that is an unknown quantity. The carsales vehicle history report costs as little as $34, but could save the buyer thousands. And customers can also obtain reports on three cars ($49) or five cars ($59). 

carsales vehicle history report provides an in-depth vehicle history that may reveal whether the car is subject to finance, whether the odometer has been wound back, whether the registration is current or whether the car has been stolen. Most importantly, the report may reveal that the car has been written off in the past.

Another avenue for learning whether the car you're planning to buy has been in the mother of all prangs is to check out the National Written-Off Vehicle Register (WOVR) database. It could be your saviour. 

The WOVR was established to stamp out rebirthing vehicles – a practice in which a badly damaged car is bought for its Vehicle Identification Number (VIN), which is then used on a stolen vehicle to give it a new identity.

The WOVR lists by VIN all vehicles up to 15 years old and weighing less than 4.5 tonnes that have been assessed as write-offs due to severe damage, or because they are uneconomical to repair.

Essentially, write-offs fall into two categories; Statutory Write-Offs (SWO) and Repairable Write-Offs (RWO).

A Statutory Write-Off means the vehicle is a total loss and is irrepairable. In some cases, parts from a statutory write-off may be used to repair another vehicle. For example, if a vehicle has been written off due to a rear end collision, undamaged parts from the front of the car may be used.

SWOs include vehicles that have suffered extreme structural damage to the roof, floor pan or firewall. Also included is suspension damage, and major mechanical component failure in an engine block or transmission case.

The 'bible' for determining whether a car ranks as an SWO is the 'Damage Assessment Criteria for the Classification of Light Vehicle Statutory Write-Offs', published December 2019 by Austroads and the National Motor Vehicle Theft Reduction Council.This comprehensive document can be downloaded as a PDF for quick reference.

According to the Damage Assessment Criteria, vehicles immersed in any sort of water above the inner door-sill level for any period are deemed SWOs. In the past, the criteria made allowances for the differences between salt and fresh water, or the length of time the vehicle was immersed in the respective type of water. That is no longer the case.

Fire-damaged vehicles will be judged to be SWOs if the fire has damaged internal sections of the vehicle - those being the engine compartment, the cabin or the boot. If the paint in those respective sections has blistered, the car is a statutory write-off. That applies too if the fire has damaged structural members such as roof, pillars, floor pan, firewall and/or chassis rails. Vehicles fitting these criteria are fit for wrecking or scrap only.

Often, these vehicles have been burnt out after being stolen and stripped of all or most of their interior and exterior body parts, panels and components (such as the engine, wheels, bonnet, guards, doors and boot lid).

Structural damage as a consequence of a collision is another point for assessment. If the roof is 'fractured, cut, cracked, buckled and/or is folded over onto itself', the vehicle is an SWO, according to the criteria. The same criteria apply to the chassis rails, roof pillars, firewall and the floor pan.

Vehicles recorded as Statutory Write-Offs after 1 May 2002 can’t be re-registered and the vehicle identification number (VIN) can’t be re-used.

If an SWO is offered for auction or sale, it must have a warning label affixed to it with the following message:

'Statutory Write Off. Warning. This vehicle cannot be registered. Suitable for parts/dismantling only. The vehicle identification number (VIN) has been cancelled.'

Statutory Write-Off regulations apply across Australia.

The WOVR program dictates insurers, wreckers and Licensed Motor Car Traders (LMCT) advise their state government or territory within seven days of assessment that a vehicle has been written off.

A Repairable Write-Off (RWO), sometimes known as an economic write-off, is determined by insurance companies who assess that, when the vehicle’s salvage value is added to its repair cost, the market value of the car is exceeded.

How that works in practice is like this: Your car's market value is $5000. That's what you could theoretically receive for it if you sold it. The car is heavily damaged in a crash, and a selection of parts dismantlers (wrecking yards) tell your comprehensive insurer that they would pay the insurance company $1000 for the wreck ('salvage value').

Panel beaters have told the insurer's assessor that the damage is over $4500 to repair. The assessor notes that while it's a close-run situation, the insurer can pay you the market value ($5000) and recover $1000 from the sale of the wreck for an all-up cost of $4000. Repairing the car will cost it $4500.

A point to note there: it's stipulated in comprehensive insurance policies across the land that a vehicle that's written off, whether repairable or statutory, becomes the property of the insurer.

Like statutory write-offs, repairable write-offs are also registered with the WOVR and the vehicle’s registration is cancelled.

However, unlike an SWO, an RWO can be sold, mostly through damaged-vehicle auctions, or repaired by the owner, if the vehicle was only covered for extended third-party insurance.



In some cases, buying an RWO isn’t as bad as it sounds: The decision to scrap it can be based on the economics of fixing it, not the extent of the damage. For example, a brand new car with minor hail damage could be considered ‘uneconomical’ to fix and therefore declared an RWO.

Repairable Write-Offs generally fetch a much lower price, so you need to keep this in mind when negotiating the purchase price.

There are restrictions to fixing and re-registering RWOs and you should check with the authorities in your state or territory.

The New South Wales government is particularly severe in its insistence that RWOs stay off the roads. There are exemptions though. Hail damage is one such exemption for NSW residents.

If the car has a high market value or is in a special class due to its limited production status, for instance, it may also be exempt. Personally imported and self-built vehicles, or those inherited or owned for five years or more by a member of a recognised enthusiasts club are also candidates for the exemption list.

If permission is given by the state authority to repair a vehicle, it has to be completed to the manufacturer’s guidelines or industry standards and, once completed, be given a Certificate of Compliance by a licensed repairer declaring it has been repaired to the required standards.

Following that, it must pass a Vehicle Identity Validation (VIV) inspection, which certifies it as a previously damaged vehicle, not a rebirthed stolen vehicle, plus a mechanical inspection. Once all these conditions have been met, it can be registered and sold.

Further information applicable to your state or territory can be found here.
NSW Roads and Maritime Services
VicRoads
Department of Transport and Main Roads
Tasmania Transport
South Australia Transport, Travel and Motoring
Western Australia Licensing
Northern Territory Driving
Access Canberra