My guess is that “lost” didn’t mean completely gone or destroyed, but “totaled” aka damaged to the point it would cost more to fix than to just buy a new car. But “totaled” cars can often be sold for scrap, or sold to be repaired to the point where they are at least drivable, even if certain systems don’t work or there’s a risk of issues (like mold or electrical problems) down the road. Which is apparently what happened here.