Code 2, Code 3 and Code 4 Cars: What the Codes Mean in SA

Code 2, Code 3 and Code 4 are salvage codes. They grade how badly a car was damaged and whether it is worth putting back on the road. In general, the higher the code, the worse the damage and the harder it is to re-register and insure the car. A Code 2 car is usually repairable, a Code 3 car has serious damage and needs careful checking, and a Code 4 car is normally sold for scrap or spares only.

Treat those as general descriptions. In South Africa the codes come from insurer and auction practice, not from one law with one wording, so the exact definition can differ between sellers. Always ask who assigned the code and what it means to them, and get the answer in writing.

What do salvage codes mean?

When a car is badly damaged in an accident, fire, flood or theft, the insurer decides whether to repair it or pay out the owner. If the repair cost is too high against the car's value, the insurer writes it off, takes ownership of the wreck and sells it as salvage. The code tells buyers what kind of wreck they are looking at.

The code is not the same as the car's market value, and it is not a roadworthy certificate. It is a starting point for your questions, not a guarantee of anything.

Code 2, Code 3 and Code 4 compared

What is a Code 2 car?

A Code 2 car is the mildest of the three. The damage can be repaired, and a good repair can return the car to the road. The key word is good. Hidden damage to suspension, airbags or the chassis can cost far more than the visible dents, so an inspection by someone independent matters more than the asking price.

What is a Code 3 car?

People search for "code 3 cars" more than the other two codes, because Code 3 cars are the ones that look like bargains. They are written-off vehicles that are often cheap, but the damage is serious. Some are repaired and re-registered, and some are not worth the trouble.

Before you consider one:

• Get a written repair quote from a workshop that has seen the car, not an estimate from photos.
• Ask what the licensing authority will need before it allows the car back on the road, and whether the car's record will show its history.
• Ask your insurer whether it will cover a rebuilt write-off, and on what terms, before you pay.
• Expect a lower resale value than a similar car with a clean history, even after a good repair.

What is a Code 4 car?

A Code 4 car is generally treated as scrap or a source of spare parts. It is not meant to be repaired and re-registered. If a seller offers you a Code 4 car as a runner, or says it can simply be "sorted out" at the licensing office, be very careful. Confirm what is allowed before any money moves.

Can you re-register a written-off car?

It depends on the code, the damage and the repair. In broad terms, a repairable car has to be fixed, inspected and passed as roadworthy before it can go back on the road, and a car sold for scrap or parts should not. Check the current requirements with your local licensing authority before you buy, because the rules and paperwork matter more than the label on the listing.

Are written-off cars and repossessed cars the same thing?

No. A bank repossessed car was taken back because the owner stopped paying the finance. That says nothing about accident damage, and many repossessed cars are in ordinary condition. A written-off car was declared a loss by an insurer after damage.

The two overlap only by accident, so don't assume either way. If you are searching for bank repossessed cars for sale, you still need to check each car's history. Our Car Auction Scout reads every bank-repossessed and auction-house car from 8 auction houses every day and ranks them by estimated profit, with trade value, repairs, fees and VAT worked out. It costs R300 a month.

Why are some cars for sale under market value?

A car priced well under market value is cheap for a reason. It may be a repossession being sold quickly, a trade-in, or a write-off. The price alone will not tell you which. Before you treat a low price as a bargain, compare it with the car's South African trade and retail values. The AssetScout app gives you those values by VIN or by make and model, and if no value is found the search is refunded.

How to check a car's history before you buy

1. Get the VIN. Take it from the car itself and from the paperwork, and make sure the two match.
2. Check for registered insurance claims. A Car Accident Report lists the insurance claims registered against a VIN. It costs R110 a report.
3. Check the value. Compare the asking price with the trade and retail values for that make and model.
4. Ask for the code and who assigned it. If the seller says a car has a salvage code, ask for the documents that show it.
5. Get an independent inspection. Pay a workshop you trust to look at the structure, airbags and repair quality.
6. Check with your insurer. Confirm that they will cover the car before you buy it.

A report on the VIN won't replace an inspection, and an inspection won't replace a history check. Use both, because each catches things the other can miss.

Frequently asked questions

Is a Code 3 car safe to buy?

It can be, if it has been properly repaired, inspected and passed as roadworthy, but the risk is higher than with a car with a clean history. Structural damage is the main concern. Don't buy one without an independent inspection.

Are Code 2 cars cheaper than normal cars?

Usually, yes, because buyers pay less for a car with a damage history. How much less depends on the damage, the quality of the repair and the car. Check the book value for the same make and model and treat the gap as the discount you are being offered.

What is my car worth if it has been in an accident?

Start with the book value for your make and model. The AssetScout app gives you the trade and retail values by VIN or by make and model. A repaired accident history can lower what buyers will pay, so be honest about it. Our guide on how to get the best price when selling your vehicle covers the selling side.

Where can I find repossessed cars for sale?

Banks and auction houses sell repossessed cars, often through auctions. Car Auction Scout collects the listings from 8 auction houses in one place each day, and has city pages for Johannesburg, Pretoria, Durban and Cape Town.

Can I tell if a car was written off from its VIN?

A VIN lets you look up the car's history. A Car Accident Report lists insurance claims registered against it, which is a strong sign that something happened to the car. Combine it with an inspection and questions to the seller.

Next step

If you are looking at a car right now, start with its VIN. Order a Car Accident Report to see what insurance claims are registered against it before you pay a deposit.