Ihad just cosigned for my dauther’s new car, a 2008 Focus. It’s two months old, and she was just run into(not her fault) and the repair cost is over $8500, with a bent frame. Insurance is going to fix it. My 1st question is- If we decide to sell the car in 4 years and this shows up on a Carfax report, would there be an additional loss of value because of the wreck? Can we ask the insurance company to reimburse for this anticipated loss?
There almost certainly will be an additional loss in value. Of course you can ask about reimbursement for lost value. You can ask for anything. Check with your insurer to see what they believe the lost value from this accident might be. Then contact the other insurer and discuss it with them, if you have to handle it yourself. Otherwise, direct your insurer to negotiate a reasonable settlement.
Yes, they owe you for the loss in value after repairs are made. A repaired wreck is worth less than a car that has never been wrecked. They won’t want to pay it. Your role is to be the tough guy who won’t let them take advantage of your daughter.
You should demand the loss in value for a two-month-old car, not a four-year-old one. Think of the car as an asset in figuring yours and your daughter’s net worth. How much has your net worth decreased? That’s what they owe you.
If the dealer from whom you bought the car treated you well, you might explain the situation to them and ask how much less it is worth.
Yes, it will reduce the trade in value unless you don’t trade for 10 years or so. By then the car will not be worth a great deal anyway. The dealer who accepts the trade will have to disclose the damage so they will take the car to the auction.
Contact the paying insurance company now and discuss what is called diminished value.
Take it back to the dealer where she bought it and try to trade it in on an 09, if available. Tell them that it was wrecked. You’ll see how much this will hurt the value pretty fast. Then go back to your insurance company and tell them you want the difference. If the facts are as stated . . . your insurance company should be pressing the other guy to pay for all of this . . . since she was run into by someone else. Rocketman
Let us know what happens as things progress. Even if we can’t help you any further, you can help us learn from your results.