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Post by cp on Mar 10, 2011 10:14:10 GMT -5
I'm buying a new car. Im using my 05 Camry as a trade in and was offered $8550 for it. (I have this offer on paper from the dealer.) I was supposed to order the new car last night and that very morning, I got hit on the way to work. Obviously the value will now significantly drop. Im really angry at the thought that I could be out a couple of thousand dollars for an accident that wasn't my fault. Does anyone know if i can be reimbursed for the difference between what the car is worth before and after the accident?
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Deleted
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Post by Deleted on Mar 10, 2011 10:17:42 GMT -5
Your current insurance should "make you whole" for the value of your car when you were involved in the accident. Depending on whether or not you get the car repaired before you trade it in will depend on the value of your car as a trade in.
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alabamagal
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Post by alabamagal on Mar 10, 2011 10:21:02 GMT -5
If you have collision insurance, they should pay to repair the vehicle minus your deductible. You will be out your deductible. Unless you decide to, dare I say, SUE the other party if they were clearly at fault. Work through your insurance company and see what the options are
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Post by cp on Mar 10, 2011 10:22:43 GMT -5
The car will definately be repaired because right now its not even driveable. Im worried that after they fix it, and i go into the dealer and he tells me the car is now worth lets say $6550, what i do about that difference. Thats going to be $2000 that will come out of my pocket when I buy the new car.
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Deleted
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Post by Deleted on Mar 10, 2011 10:24:19 GMT -5
The car will definately be repaired because right now its not even driveable. Im worried that after they fix it, and i go into the dealer and he tells me the car is now worth lets say $6550, what i do about that difference. Thats going to be $2000 that will come out of my pocket when I buy the new car. If it gets a quality repair job back to its preaccident condition, it should be worth, roughly, around 8500. Do you have a reason why you think it will be worth so much less? |
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Post by cp on Mar 10, 2011 10:27:28 GMT -5
Yes...because once the car is in an accident it gets reported to car fax. This ultimately depreciates the value of the car and becomes a problem for the dealer. Most will no longer sell it on their lot and they go through a wholesaler. I confirmed this with the dealser and my insurance company.
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Deleted
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Post by Deleted on Mar 10, 2011 10:30:25 GMT -5
hmmmm... I think the only recourse you would have is to take the at fault driver to small claims court for the difference, although I am not sure if you have a winnable case or not.
You could also try strong arming his insurance company and getting the difference that way.
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Clever Username
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Post by Clever Username on Mar 10, 2011 11:23:20 GMT -5
As others have pointed out, insurance is meant to "Make you whole" which in your case is very precisely calibrated. Most folks going into this don't have a written offer on thier vehicle.
By your description, that the car is not drivable and it's only worth $8550, chances are pretty good that it'll be totalled. Which is perfect for you, they'll just write you a check.
I'll be dollars to donuts that the check is more than the trade in offer.
Typically, they shoot for somewhere near retail with their offer because you're supposed to be able to replace with a similar car.
Obviously, they're not paying for your upgrade, but let their adjuster have a crack at it.
And BTW, don't be too quick to whip out that appraisal. Consider that your ace-in-the-hole. That's your rebuttal to their first offer. If needed.
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8 Bit WWBG
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Post by 8 Bit WWBG on Mar 10, 2011 11:29:22 GMT -5
I agree with Clever Username. You might do better getting a check than doing the trade-in.
You might even be able to negotiate a slightly better deal, since there will be no paperwork associated with doing a trade-in, and less risk for the dealer in having to sell the trade-in.
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Deleted
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Post by Deleted on Mar 10, 2011 11:29:24 GMT -5
If I were an insurance adjuster I'm not sure how much credibility I'd give to a trade-in offer from a dealer. They typically jack up that number and then jack up the price they plan to charge you for your new car. Was this an offer to buy it outright? If not, don't trust it. How do you think those places that offer a minimum trade-in value of, say, $1500 for anything you can drive onto their lot make money?
Your best bet (and I'm the mother of a claims adjuster who works with totalled autos) is to do research on local dealers and what prices they're charging for similar vehicles and show that to the insurer.
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Post by cp on Mar 10, 2011 11:57:02 GMT -5
Its not driveable because the front tire took most of the impact but I really dont think theres enough damage to total it. As for the new car, Im getting it at invoice and was basically going back and forth to get the best deal on my trade-in. Im confident I got the best deal I could possibly get. To athena53...Im hoping to show that paperwork from the trade-in to the adjuster after he looks at my car to see if he can come up with a solution so I don't end up with a loss. Im hoping they do "make me whole".
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Deleted
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Post by Deleted on Mar 10, 2011 12:02:15 GMT -5
Its not driveable because the front tire took most of the impact but I really dont think theres enough damage to total it. As for the new car, Im getting it at invoice and was basically going back and forth to get the best deal on my trade-in. Im confident I got the best deal I could possibly get. To athena53...Im hoping to show that paperwork from the trade-in to the adjuster after he looks at my car to see if he can come up with a solution so I don't end up with a loss. Im hoping they do "make me whole". See if you can get a letter from the dealership stating that even if the car is repaired to preaccident status, the value of the car will be reduced by $xxx simply because of the fact that the car was in an accident. that might help you prove your point to the insurance company and help you put some pressure on them. |
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Post by cp on Mar 10, 2011 12:23:41 GMT -5
That is definately a consideration. I hope it will help.
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8 Bit WWBG
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Post by 8 Bit WWBG on Mar 10, 2011 13:46:38 GMT -5
...:::"If I were an insurance adjuster I'm not sure how much credibility I'd give to a trade-in offer from a dealer. They typically jack up that number and then jack up the price they plan to charge you for your new car.":::...
Maybe he's read YM before and knows that you ALWAYS negotiate trade-in value as a completely separate transaction after you have settled on a price for the car.
...:::"do research on local dealers and what prices they're charging for similar vehicles and show that to the insurer.":::...
It would be very interesting if local dealer research indicated the the trade-in offer was either too low or too high. If the average price of the same exact car is in the $6ks, then yeah I'd be MAD if I had an offer in hand for $8k that was now not going to get honored.
And i'm assuming the dealer can get out of honoring the price, since the condition of the car has drastically changed. Even if you could get him to honor it, its not right unless the damage is much cheaper to fix than they let on.
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Post by cp on Mar 10, 2011 14:11:57 GMT -5
I did do my research before hand so I know I got a really good deal. And the dealer can't honor that because car fax will make it harder to sell now.
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azphx1972
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Post by azphx1972 on Mar 10, 2011 14:21:11 GMT -5
If the insurance company comes back with a low ball settlement offer on the vehicle, ask them to find you an identical car in identical condition, mileage, etc. That's what I had to do with my insurance company's initial offer after getting my car totaled by an uninsured driver, and they came back with a much more reasonable number, plus compensation for my lost time from work due to the incident.
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stats45
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Post by stats45 on Mar 10, 2011 14:36:03 GMT -5
I'm going to second athena and say that the insurance company won't really care much about what another person offered to pay for it. What would the Blue Book value of the car have been for a private party sale before the accident? That would be my starting point in negotiations.
My thinking is like this. What if you had instead been ready to sell the car to a private party for $15k? The $15k doesn't represent the market value for the car but someone overpaying. In that situation you wouldn't think the insurance company would be on the hook to replace at $15k, right? The insurance company is going to draw their own conclusion about the market value and any potential loss due to having a large accident/repair on your record. The dealer offer really seems irrelevent.
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Deleted
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Post by Deleted on Mar 10, 2011 14:36:37 GMT -5
Maybe he's read YM before and knows that you ALWAYS negotiate trade-in value as a completely separate transaction after you have settled on a price for the car. No, but he once had someone show him a dealer ad for a used car (the model the claimant had totalled) with a pretty exalted price for the car (as proof that the insurance company's offer was too low). DS called the dealership. Turned out that was the cost with a guaranteed minimum trade-in value for whatever beater you could drag onto the lot. So DS knows about games dealers play with pricing. I recommend that the OP research costs of similar models regardless. If it's totalled, the insurance company probably uses a vendor model to estimate the value of the car. DS isn't always happy with the numbers that come out of that model and his employer, which seems to be pretty fair with their claimants, will allow him to pay more if he can make a clear case that the vendor model is wrong. |
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tractor
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Post by tractor on Mar 10, 2011 15:03:55 GMT -5
I had the same thing happen a year ago. I was going to get $2,500 from the dealer for my trade in. I hit a deer on the expressway a week before I was to pick up my new car. The insurance company gave me $6,200 for it and totaled it out. It was one of the few times I came out ahead.
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Post by cp on Mar 10, 2011 16:34:26 GMT -5
Blue Book value on my car is between 7 and 9 thousand depending on the condition. My car happened to be in very good condition with low mileage so I was given 2 offers of over $8000 from 2 very reputable dealerships. If this was a few hundred dollars it wouldnt be so bad but I know for a fact that I am looking at a mucher higher loss in the thousands, which is a HUGE difference. Think about it...If there are 2 cars that are the same, but one has been in an accident no one is going to take the one that has been damaged unless it is sold at a much lower cost. The dealer is not going eat the difference in price. So unless the car is totaled, which Im sure it will not be, or the insurance company helps me get back that difference, Im out the money as a result of a car accident that I am at 0% fault for. To me this makes it quite relevent.
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8 Bit WWBG
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Post by 8 Bit WWBG on Mar 10, 2011 16:45:26 GMT -5
...:::"No, but he once had someone show him a dealer ad":::...
I meant that maybe the OP had read YM and knew to negotiate trade-ins separately. Which it sounds like he did, if his research shows he is getting a good price.
...:::"So unless the car is totaled, which Im sure it will not be, or the insurance company helps me get back that difference, Im out the money as a result of a car accident that I am at 0% fault for. To me this makes it quite relevent.":::...
To you, yes. To the dealer and the insurance company, probably not. Re-reading the scenario I think athena53 has described everyone's involvement pretty much.
The only person who "should" be on the hook to reimburse you the lost money is the driver who hit you. You could try to take him to court, but that might just be a big headache.
...:::"Blue Book value on my car is between 7 and 9 thousand depending on the condition. My car happened to be in very good condition with low mileage so I was given 2 offers of over $8000 from 2 very reputable dealerships.":::...
If blue book value is $7k-$9k, that is a different story. Just tell your insurance adjuster that you want the car totaled. Don't take no for an answer.
Alternatively, is it possible to sell the car to the dealer for less, but get a quote for the repairs that make up the difference, then get insurance's check? I did something like this when I needed a home repair, and the insurance company's "preferred" contractor was price gouging. I took their money, hired my own guy, and got more work done, at higher quality, for less money. I was up front that I was doing this, and they were fine with it.
And my deepest sympathies for being the victim in one of those infuriating life situations where you did nothing wrong, but may personally pay BIG for someone else's negligence, with no reasonable swift recourse you can pursue.
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Post by cp on Mar 10, 2011 17:28:52 GMT -5
Im getting confused...OP YM DS? Im C P but what is DS and YM? It looks like Im just going to have to wait for the adjuster to look at my car and explain the situation to him. And yes, unlimately the driver is the one who should be on the hook for the loss of trade-in value. If the insurance company doesnt help, and I persue this legally I would assume she would try to take care of it under property damage anyway so Im hoping the adjuster gets involved now. The mechanic just told me that although he's not sure until he really goes over the car, its looking like theres about $5000 in damages. I know I got hit pretty hard but I didnt think there was that much damage. Does anyone know when an insurance company decides to make the car a total loss? Im guessing it varies by state?
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azphx1972
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Post by azphx1972 on Mar 10, 2011 17:38:55 GMT -5
I think:
OP = original poster
YM = your money
DS = dear son
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Post by illinicheme on Mar 10, 2011 17:47:29 GMT -5
The real YM question here is why you were trading in a 2005 Toyota Camry in great condition with low mileage for a new car! ;D
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hoops902
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Post by hoops902 on Mar 10, 2011 17:59:23 GMT -5
"If blue book value is $7k-$9k, that is a different story. Just tell your insurance adjuster that you want the car totaled. Don't take no for an answer."
Maybe I'm missing where OP discussed the cost of the repairs, but since when do you just get to "demand that they total your car out"? For all we know the repairs could be $3k, they're not going to total out a $9K car over a $3K repair and you don't have the right to simply "not take no for an answer".
Am I missing something? Am I that out of touch that you can simply now demand they total your car out even if there's no reason to??
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azphx1972
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Post by azphx1972 on Mar 10, 2011 18:07:51 GMT -5
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Post by cp on Mar 10, 2011 18:12:28 GMT -5
Thanks azphx.
And to illinicheme....Im looking to get an AWD is all and now is a good time for me to buy.
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princessleia
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Post by princessleia on Mar 12, 2011 21:39:20 GMT -5
I won't be surprised if your Camry will be totalled and that the check you get might be more than what KBB says. I have had 2 Toyota Corollas and both were totalled within the first couple years and I always have gotten more than what KBB says. Toyotas have got the abilty to retain their value.....there wasn't even any need to get gap insurance.  OP: were the airbags deployed when you were hit? If so, it will be totalled most likely. |
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Deleted
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Post by Deleted on Mar 12, 2011 21:58:30 GMT -5
Just take the cash they pay you and use that for a down payment, sell the car for scrap as is... might even make out better...
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schildi
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Post by schildi on Mar 12, 2011 22:02:56 GMT -5
Yes, the car will lose in value after an accident, but the other guy's insurance (the at fault party's) should compensate you for that. Make sure to insist on that.
In the end, you may come out ahead. If you get cash for the car, make sure to re-negotiate the price of the new car. It should drop significantly if you don't have a trade-in.
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