What happens to your car after it totaled? Most American car owners never really found out. The insurance company takes damaged carcut the check, and for most of us, our attention turns to finding an alternative ride. NPR’s Planet Money is deeply involved in the global market for rescue vehiclesand it’s a fascinating read for anyone curious about where good cars go when they die.
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Reporter Scott Gurian got curious about the global trade in American scrap cars through a fun roundabout event. Back in 2016, Gurian driving in the Mongolian Race, an 11,000-mile slogan across 18 countries, from the UK to Mongolia. Gurian’s Nissan Micra broke down several times during his 52-day journey, and through one of these incidents, Gurian befriended a mechanic in Turkmenistan named Oraz.
Fast forward to today. Gurian has returned home to New Jersey. Oraz sent him a message from Turkmenistan, showing that a curious car had popped up in his shop: A 2021 Lexus RX350. Aside from some minor cosmetic damage, a bit of rust and some broken electronics, it seems to be in excellent and almost new condition. One thing caught Oraz’s eye – the New Jersey test sticker on the windshield.
You can piece together part of what happened here. The Lexus flooded in New Jersey in The aftermath of Hurricane Ida in September 2021. The insurance company declared a total loss and the car – now bearing the title of rescuer death – was sold at auction.
Gurian and reporter Alexi Horowitz-Ghazi dive into the story to find out exactly the economic effects that led to a rescue-titled Lexus being exported from New Jersey to Turkmenistan – a straight line over 6,000 miles. .
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If you pay attention to the global car market, you probably have a grasp of the broader influences at play here: A salvage-brand title not necessarily follow a vehicle sold in the US when it is headed to another country; in many parts of the world it is much cheaper to import and repair a broken down car than to buy a new one locally, even if you factor in the cost of shipping over a large part of the world . For certain buyers, a luxury car in the US market is a very attractive status symbol, even if it comes to damage abbreviated.
The full story has lots of unexpected twists and turns. Planet Money always weaves compelling stories along with economic information that you may never find anywhere else. Download the full 30 minutes hereand enjoy it on your next commute. You will get a better understanding of the second generation that many cars find after they have been abandoned by their American owners.
