Diminishing Value Claim for Brand New Car (only 50 miles)

No Agent ? Well, There You Go. Amica (Not Amicable). They May Be Reputable, But Why Can’t You Get Any Service ?

I Live twenty miles from a town, but my agent is always available there by phone or in person. Not all insurance and the service they provide is the same. You get what you pay for in many cases.

CSA

I had a little trouble getting an estimate from my dealership because the car is still being repaired even though its through a certified shop. When I asked them to put something in writing he wouldn’t do it for that reason. Did you get a statement after the car was fully repaired or while in repair?

Back in 2003 I received $3442 in a Diminished Value Claim against the insurance co of the guy who hit me from behind while driving my 2000 Toyota Corolla LE. This was over and above all the other costs of repairing my Corolla.

I used the guys in the linky below, mainly because they were local to me. Their apparisal cost me $325 IIRC. So my net “gain” was $3442 minus $325 for the appraisal. I used these people because they were reccomended by a friend who used their services a few years before, and also because they were local. I am quite sure there are many others on the Interweb out there. However, I would investigate their credentials first, before paying waht they’re asking for their official apparaisal.

Good luck.

http://www.directdv.com/index.html

Thanks, I’ll check if there are any near Boston.

What kind of service did they do to reclaim the money? Did you go through the court or was it all done through the insurance?

Edmunds estimates that first year depreciation for a 2010 Rav4 is $4707. The difference between a private party sale and a trade-in is about $2000 for a 2009 Rav4. If the dealer offered you less than about $20,000 for it ($26,500 - $6700), you might have a case. But they offered $1000 more. If there is any diminished value, it appears to be quite small. You were offered a fair market value for the SUV by the dealer, and it is not way below what a 3rd party (Edmunds) thinks is reasonable. You may want to rethink your complaint.

A car that has been in an accident is NOT worth as much as it would have been, IMHO.

Really depends on how bad the accident…

It also doesn’t matter WHAT you or I believe…It’s what you can PROVE.

You wouldn’t want to do anything until AFTER the car is repaired. Only then will you know the true extent of the damage. Why rush to judgement? You only stand to lose out on potential damages in the event the initial estimate is incorrect. Don’t sign any release of liability with the insurance company. Sometimes those are tucked away in settlements…

My adjuster wasn’t helpful. She told me that I would have to make a claim with the other insurance company but she doesn’t know anything about trying to reclaim diminishing value.

That’s because no-one has ever done it before. Have you talked with a lawyer??

Next time buy GAP insurance. Thats the insurance everyone says is a waste of money. It would have lessen your loss. You are not going to recover any money when it comes to new and trade in value. You lose $5-10k when you drive your vehicle off the dealer lot.Your car will now be listed on CarFax, that it has been in an accident, so it will have even less value at sell or trade-in time.

@CSa:

If I recall correctly you did an excellent job detailing my tires at one of the dealears you worked at.

Used car salesman value cars totally differently depending on whether they are buying or selling.  In other words, if your car has been in a collision they are going to offer you jack for it, whether as a straight sale or a trade-in.  When they're trying to sell it, suddenly the value goes up.

Your car will now be listed on CarFax, that it has been in an accident, so it will have even less value at sell or trade-in time.

That is the subject of the thread!

I don’t think that gap insurance works the way you think it does.
It your car is stolen or totaled, gap insurance will pay the difference between what your auto insurance pays and what you still owe to the bank. It wouldn’t do a thing for the OP in this case. Their car was not stolen or totaled, and we don’t even know if they owe anything on it anyway.

Twin Turbo, Does the OP know about CarFax? I didn’t see it mentioned in previous posts.This is part of the" Diminishing Value" mentioned ,along with being a used vehicle.Her vehicle is now worth less than an identical vehicle without body damaged incurred.

The OP already knows the car is worth less now that it has been damaged, as compared to a like car with no damage. The question being asked is how to determine the amount of loss and how to go about getting recompensed. This was all explained in the original post.

Although I believe people have always felt they were getting the shaft on post repair value of their car, it is only recently that there has been some success in arguing the loss and getting compensation for it.

The only impact CarFax has on the situation is that it makes it easier for the general buying public to recognize a repaired car from one that has not been repaired. Any sufficiently knowledgeable or experienced buyer would likely spot the repairs without needing such a service, especially if it was done on the cheap. The existence of CarFax does not alter the monetary value of the loss, only the propensity for detection, something the seller should probably disclose in the first place, if it affects the resale value of the car.

Do you have a Carmax near you? They may be a good source for a documented loss in value. They can give you a trade-in value for your car, and they may be willing to put in writing what it would have been worth without the accident.

Gap insurance covers the difference between what you owe and what the car is worth, and only when you have a total loss of the vehicle (like if it is stolen and you never see it again, or if it is totaled in an accident). GAP insurance wouldn’t help in this situation.

I would suggest a professional appraisal making certain that there is a line item for the accident history. Let the appraiser know what you’re doing when you pay for the appraisal so he will maximize the number as opposed to minimizing it. If you can back it up with a second estimate from an independent dealership or car buyer it would good. Courts like appraisers and experts almost as much as lawyers.

Then, contact the insurance company and ask them nicely (once) for payment- or not, it’s optional really. Don’t give them the original documents as you will need them in court. The insurance company is unlikely to pay willingly so plan on stopping by the courthouse on the way home to file suit agains the other driver. His insurance company may or may not indemnify him but that’s their business. You only need to prove that your damages exceeded the repair cost in the form of diminished value.

Sorry, this is off thread, but related to this discussion. According to Automotive News, 5/17/10 issue, Writer Arlena Sawyers reports that CarFax is now assessing a value to vehicles.This a jolt to dealers that have CarFax service. CarFax uses History Impact value. This is a service offered to vehicle buyers. Most people use the Blue Book or Yellow Book for car values. The Automotive industry uses the Black Book. Now CarFax is in the game.

Diminished value is real, and is recovered every day on third party claims. The trick is getting an expert to write a credible report reflecting how much diminished value there is. There are a few good companies out there. A used car salesman’s quote will never hold water, they have a conflict of interest because they want to make a profit!