Having your car declared a ‘write-off’ means that it’s so badly damaged that it’s not worth repairing at all. That’s a financial disaster, but one that has some silver lining. Business owners can use it as a tax write-off, while buyers can purchase the unwanted car at discounted prices.
There are statutory write-offs, which are beyond saving and can never be driven again. Others are repairable write-offs that can be driven after the necessary repair and safety inspection. Even if not for driving, written-off cars are worth buying for parts, to use as a cheap project car, or as collectible, rare models.
This article will help you understand everything you need to know about written-off vehicles, the different types of write-off cars, and so much more.
What Is a Write-Off Car?
Before we dive into the central question of this article, let’s take a step back and clarify a few definitions.
The term write-off car essentially refers to a damaged vehicle that’s not worth repairing.
However, the term itself goes a step further into three classifications, which are:
- Statutory: This classification is given to cars considered a total loss. The vehicle is damaged beyond repair, and there's no way it would ever end up on the road again. However, some parts (not all!) of a statutory write-off can be salvaged or scrapped.
- Repairable: Repairable write-off cars might have a second chance at life. The vehicle's condition isn't as bad as a statutory write-off, but it will still cost more than the car's worth to fix it. You could get a repairable write-off car back on the road after repairing and having it inspected by your local road authorities.
- Inspected Repairable: Another classification you’ll sometimes find is the inspected repairable write-off car. As the name suggests, this repairable write-off has since been fixed up and re-registered.
Business owners would be particularly interested in this topic. They can declare a write off car on taxes for the year.
If your business is eligible, you could qualify for an instant asset write off car in 2021 or whichever tax year you’re filing for.
Be sure to refer to the tax authorities to determine how a tax write off car should be declared on your taxes for the year.
Can You Drive a Written-Off Car?
In most cases, you cannot drive a written-off car, but there are some exceptions.
For example, you can drive a written-off vehicle in South Australia if:
- The vehicle is a repairable write-off that’s still registered (i.e. NOT a statutory write-off)
- You have an unregistered vehicle permit for that car
- Has a trade plate on display
More importantly, you can only drive that written-off vehicle only for a few specific reasons like:
- Getting the car repaired
- Getting the car inspected before you take it to get registered
South Australia is only one example, and each state or territory will have different rules on the matter. If you’re in doubt, always err on the side of caution.
It’s always safer to assume that your written-off car is not driveable unless you have the necessary permissions.
What Is A WOVR?
State governments across Australia keep track of written-off vehicles through an initiative known as WOVR or the Written-Off Vehicles Register.
Starting in 2004, this initiative was meant to record the identifiers of written-off vehicles (e.g. their VIN and other details). More importantly, the WOVR also keeps information on the damage suffered by those vehicles.
With all those details, the register serves as a reference for authorities to figure out a car's status.
For example, they’ll use the WOVR to see if a car was stolen and rebirthed, made of stolen parts, or was formerly a wreck brought back to life.
Of course, the WOVR isn’t just there to benefit the authorities. It’s also critical to ensure that car buyers don’t unknowingly buy a stolen or dangerously rebuilt car.
Is It Worth Buying a Written Off Car?
Here’s one way to look at things: a written-off car is no longer worth saving. So, why would people voluntarily buy a statutory or repairable write-off?
Well, several benefits might make buying such a vehicle worth it for you, such as:
- Cheap: There are several reasons why a person would want to buy a written-off car (which you’ll see below in just a moment). Regardless of your reason, one fact remains the same: a written-off car is cheap. A car that’s too expensive to fix becomes a junk that’s sold for cheap.
- Project car: Another reason you’d want to buy a written-off car is if you need a project car to work on. There’s nothing better than a write-off to set up in your garage and tinker with for the next few months or years. It won’t cost you much, and you won’t feel bad if you damage it further.
- Spare Parts: People generally have plenty of options to get spare parts for their cars. However, people with old, discontinued, or extremely rare models don’t have it so easy. If you find yourself in that position, you could try buying a written-off car that has the parts you need, so you can pull it out and transplant it into your road-worthy vehicle.
- Rare models: Buying a written-off car isn’t just about finding rare spare parts. You could also end up finding a whole rare vehicle model instead. That’ll give you an opportunity to fix the car up so you can keep it as a collectable or perhaps sell it off.
By Ray Hasbollah