My 02 was involved in an altercation with an SUV which resulted in $5500 damage to the nose, hood, left headlight assy, and left front quarterpanel.

I am awaiting the offer from Allstate for the devaluation. The repairs have been completed.

Now that I will have a CarFax accident report, how much devaluation can I expect? What is a reasonable amount to expect from Allstate?

 

If you get it, the diminished value rule of thumb is 20% of the cost of repairs. In your case - $1100

 

I agree with Ben as far as the math goes.

On the other hand there's "devaluation" that can't be measured. I've been involved with Vettes for over thirty years and many, many potential buyers..as well as myself...will not touch a Vette that's been hit with repairs as extensive as those mentioned above. The repair might have been very good but in the back of my mind I would always know that it had been wrecked.

I know many folks would not be fazed but being able to say when you sell it that the car "has never been hit" goes a long, long way in sustaining value in my book and with many other Vette enthusiasts.

It's just how I feel and not necessarily the rest of the Planet.

 

Being retired from the retail car sales which includes high line . My
twenty years plus will tell you forget 20% of repair trade value will be
much less for a vette with a big hit!!!! It may push the car back from
clean book to below rough.Check a local black book or galves book.
Your retail will also drop big time because ther are too many virgins available.Check your local books for a fair shake!!!!
GOOD LUCK
Tony S

 

I don't think it will affect it that much. By the way did you take pictures of the car while it was being repaired. That way potential buyers can assess for themselves the seriousness of the incident. People are paying big bucks for older cars that have been through the meat grinder and then restored so a repair doesn't mean much as long as it is properly done.

Bill

 

Take pictures and make sure all parts are replaced with GM parts and work done by dealership if possible. Buyer would be reassured the work was done right with good proof.

 

Im sure that after he shows all the pictures that a buyer will pay
about 1100 or 1200 less rather than buying the same car with the same
miles somewhere else that was not hit

 

Well, keep a good record and pics of the repairs being done and DO make sure they're done well and with GM parts. You'll want to be able to give a potential buyer as much assurance as possible. Being honest will go a long way -- trying to be coy and brushing it off will only make potential buyers more skeptical.

Keep all that in mind and also consider that your car has some mods and a buyer is also going to be wondering how hard it was run. By going the Mod route you're already taking most of the pristine/virgin/garage queen seekers out of the mix, so now your attention to detail for the car and the care you've shown it are going to be invaluable selling points, for whatever they're worth.

 

A devaluation may never be actually realized.

You could keep the car longterm and its prior repair becomes a non factor.
The car could be damaged again.[collision-your fault,animal collision,sand storm,vandalism etc]
Your car could be totaled or stolen-not recovered]and insurance woud pay its market [never damaged] value.

If I were in your position I would be very unhappy having a repaired/repainted car no matter what the amount.

This just another side of the equation.

 

All good advice. I just hope if anyone hits mine or I hit it hard that
its totaled because it sucks when you have to deal with a hit vette.
I KNOW THIS!!!
fEEL YOUR PAIN
Tony S

 

All are good points, but have you had any luck with Allstate before?

 

 

I had an '04 GTO that got hit hard, to the tune of $10,000 damage. I pursued diminished value from the other insurance company (if it's your own company, they won't pay BTW). I did a lot of research and had to be very persistant. I ended up settling for a $4000 payout (in addition to the repair). I think this was very accurate. I think the 20% rule is fine for a Honda or other utility-oriented vehicle, but like others have said here, a performance vehicle is different. Buyers are more picky and will tend to turn away from a damaged vehicle more so than a normal buyer. I had to convince the other insurance company of this, and it took going through a few layers of managment to get it done. I was not hostile and before each phone call, prepared myself for answers to their arguments.

Go to as many dealers as you can. Tell them you want to trade your Corvette in on another car. Get an appraisal on your car. Tell them about the damage so they will give you an accurate number with the damage history. Then compare that number to either average book value or to the value the dealer would give you if the car had a clean history. I had many dealers that would sign a statement saying what a clean appraisal would give and what a damage history appraisal would be. Dealers are very helpful if you tell them why you are getting numbers for both and that you are intending to trade and use that diminished value settlement towards your next purchase.

BTW, gtzy's arguement above was a huge part of their argument against paying me dimished value. They said the settlement could only be realized at a time of sale. I argued that is not true; whether I sell/trade my car or not, it is undoubtedly worth less today than it was the day before it was wrecked. They can not argue with that period. It is a known fact. The only fact in question is how much different, and that is up to you to prove. Besides, I also told them I'm too picky to keep a damage-repaired vehicle and that I was going to sell/trade it immediately so you might as well pay now. Then I used my appraisals to prove my point.

We ended up trading that GTO in on a new one. During my one of my appraisal stops, the dealer offered me such a good deal I couldn't turn it down. I used the money from my settlement just as I told them I would towards the new car. I came out about even. My only loss was having to drive a rental while my GTO was in the shop for 90 days.

 

Well done JJKJ you did it right and you avoided the possibility of more grief by trading the gto in . Nobody can say you hid anything cause you did not retail it.

 

Do a search for my threads in the archives for "Diminished Value". I've had a lot of experience fighting insurance companies on this. I'd avoid using "rule of thumb" numbers. Most insurance companies will initially say that 10% is all they will give. I've recovered alot more than that for myself and clients. On Corvettes, I'd say MINIMUM 20%, but have seen over 40%... It's going to depend on the type of damage, how much/% of repaint required, etc... Also it doesn't matter whether you ever "realize" the DV (I've discussed this at length in other threads). Your DV damages are NOW -- the fact that there is some speculative nature to the dollar amount is irrelevant. Get your DV appraisal and fight it out with the insurance company, assuming you're not at fault, and it's the other person's insco paying the claim.

 

Allstate is settling at $1400....seems reasonable.

Here is after the accident:



Here is after the repair:



The work was performed by a local Chevy dealership employing a bodyman that is the only person they allow to work on Vettes, and has been working for the dealership for 35 years.

 

Insurers only pay without much of a fight when they are getting a good deal. Here are some of my own stats on diminished value on normal everyday drivers. Vettes and other high end and performance cars generally suffer a greater loss than these figures show. But if you are happy, that's all that matters

Safe Collision Repair Statistics Show Average DV is $6,486.54

Diminished Value: Your Auto Insurance Company's Best Kept Secret

David Williams
www.safecollisionrepairs.com
www.cheapestwaybodyshop.com

PS: I work with consumers and attorneys in Ohio, Kentucky and West Virginia as an auto repair and diminished value expert.