you are referring to the NaTis status codes of vehicles which is an identifier between insurance companies and finance houses to protect the consumer against nefarious dealings. code 1 is a brand new vehicle delivered to first owner code 2 is a second hand, or rather used vehicle code 3 is a vehicle classified as permanently unfit for use (remember this is as far as insurance and banks are concerned, which is why you will not normally be able to finance a code 3). code 3's can however be rebuilt, but will always carry the code 3 descriptor. there is also a code 4, which indicates permanently demolished.