Most likely fixed and sold with a salvage title.
If it is possible to repair, it is wholesaled to a used car dealer. If the problem is not obvious the used car dealer will sell it as is. If it is obvious, he will repair it and then sell it.
If it is not repairable, it is scrapped. A warranty officer from the manufacturer will witness its destruction and report it back to the manufacturer as destroyed. The vin no. is removed and is used to certify its destruction.
They are sold back to the manufacturer, fixed and basically sold at auctions. However, when someone buys a "lemon law" car, there are affidavits and forms they have to sign stating they are aware that the vehicle was a "lemon law" car.
most of the time that i know of they go to tanning center ie community collage's (sinclair community collage, wyotech .uti) the car companys use this as a write off on taxes i hope this make since i went to collage for auto and bizz mgnt
Repaired and resold with an extended warranty and title showing that it is a factory buy-back and the price is reduced and the warranty is usually quite good for someone willing to buy it.
not totally sure but i guess it would have to be fixed then be resold with a rebuilt title
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