Z06 Vert, 9 miles rear ended / Diminished Value?
05-21-2016, 05:44 PM
#1
Melting Slicks
Thread Starter
Z06 Vert, 9 miles rear ended / Diminished Value?
Just spoke with a friend who took delivery of his 2016 Torch Red Z06, 3LZ Convertible today, and was rear ended while sitting at a stop sign on his way home. 9 miles on the car. Was hit by a Jeep SUV with two tow hooks mounted on the front bumper. Driver said his foot slipped off of the brake pedal. Driver of Jeep has State Farm Insurance. The Z06 was driven back to the dealership, and body shop is closed today, so no official estimate of damage.
Law enforcement and my friend estimate damage to bumper, facia, spoiler, trunk/deck lid and panels to be $6000-$8,000.
The question is how much "diminished value" will his Z06 have, now that it will not have a clean car fax and it's history will show this damage? Thoughts? Any dealers like to comment on what / how this history would impact trade-in / used car sales value?
Thanks!
Law enforcement and my friend estimate damage to bumper, facia, spoiler, trunk/deck lid and panels to be $6000-$8,000.
The question is how much "diminished value" will his Z06 have, now that it will not have a clean car fax and it's history will show this damage? Thoughts? Any dealers like to comment on what / how this history would impact trade-in / used car sales value?
Thanks!
The following 2 users liked this post by jaden61:
SpeedyD (06-28-2016),
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05-21-2016, 05:56 PM
#3
Le Mans Master
There will definitely be diminished value. Foot slipped off the brake, huh? Not saying that it didn't happen, but in the day of obsessive texting, this excuse is becoming more popular.
05-21-2016, 06:02 PM
#4
Instructor
I would demand 60% of the final bill and when SF says no tell them you will pursue their policy holder. Remember they want to wear you down arguing with them but the minute you involve the Policy holder and the PH knows you can and will come after them then they will push SF to make you happy. You have no contract with SF nor did they cause the damage so if you have to sue, you have to go after the PH. All of contact info you need for the PH will be in the police report. You will find out how this company does business these day, not the insurer they were just 3 years ago. Please keep us posted.
05-21-2016, 06:21 PM
#6
Safety Car
I would demand 60% of the final bill and when SF says no tell them you will pursue their policy holder. Remember they want to wear you down arguing with them but the minute you involve the Policy holder and the PH knows you can and will come after them then they will push SF to make you happy. You have no contract with SF nor did they cause the damage so if you have to sue, you have to go after the PH. All of contact info you need for the PH will be in the police report. You will find out how this company does business these day, not the insurer they were just 3 years ago. Please keep us posted.
05-21-2016, 06:42 PM
#7
Race Director
I would demand 60% of the final bill and when SF says no tell them you will pursue their policy holder. Remember they want to wear you down arguing with them but the minute you involve the Policy holder and the PH knows you can and will come after them then they will push SF to make you happy. You have no contract with SF nor did they cause the damage so if you have to sue, you have to go after the PH. All of contact info you need for the PH will be in the police report. You will find out how this company does business these day, not the insurer they were just 3 years ago. Please keep us posted.
What's a SF, PH, and DRP?
The following 2 users liked this post by Olden Slowe:
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05-21-2016, 08:32 PM
#9
Melting Slicks
Thread Starter
Thank you all for your comments and suggestions thus far! I know my buddy will appreciate your input. Does anyone have any idea how to arrive at a fair figure for diminished value on a $100,000 MSRP car with 9 miles? We'd really like to hear from those who have thoughts on this issue. Thanks in advance.
05-21-2016, 08:54 PM
#10
Melting Slicks
Diminished value depends on the severity of the hit. 6000 damage on a 100k car isn't much. 40k on a 100k car different story. I have handled diminished value claims, you can figure 10% of the value of the car or 10k based on this small loss. If the repairs come under 5k on this particular car, could be as soft as 5% realistically or 5k
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jovette (05-21-2016)
05-21-2016, 08:58 PM
#11
Melting Slicks
I think to start with the owner needs to find out the dollar damages, then go to several different Chevrolet Corvette dealers in the area and also some Late Model Used Car Lot Corvette dealers and ask what was the value of the Corvette before the accident and what is the value after the accident. This will give you a pretty good idea as to the loss of value. That will give him documentation on how he comes up with his demand. Whether you are dealing with the Insurance Company or a Court Of Law, its documentation that counts. Then in addition the owner will have a car rental claim for as long as it takes to make the needed repairs and a loss of use claim for being without the use of the Corvette in these Summer months. It will be real interesting to see just how S Farm handles this loss. Hopefully S Farm will see up front just how much this claim is going to cost them in the end. Hopefully the S Farm insured does not have a small dollar limit liability policy where his dollar policy limits cause problems if total loss is discussed. S Farm is a major ins co and hopefully they will handle this correctly from day 1. Any way you look at this this Corvette will always have the stigma of being a wrecked and repaired Corvette of which none of this was the owners fault. And hopefully the people in the Corvette are not injured. It us quite common for people to say they are OK and then when you sleep on it and you get up the next day you discover that you are stiff and sore and therefore injured.
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sjones (06-27-2016)
05-21-2016, 09:30 PM
#14
Le Mans Master
Here's what's going to happen.
The car will be fixed at a body shop, hopefully of your friend's choosing.
State Farm will pay for the repair.
That is all.
There will not be any extra money changing hands due to "reduced value" unless you file a specific claim for that and pursue it successfully. Iowa isn't a no-fault state, but even so, no insurance company is going to be writing fat checks to make anyone feel better because their too-new car got hit by one of their policy holders.
What you CAN do is file a claim for reduced value, which they will likely fight. An appraisal is the first step to a successful claim, even if you don't plan to sell the car. The diminished value is based on how much less money the car would be worth if you were to sell it. Have the appraiser, if they will agree, provide an alternate value if the car had never been damaged, and that's the amount you'll claim for.
About 70 percent of used cars are sold to dealers, who will look up the history of a car to see if it has been in an accident. So, too, will many private buyers. Thus I would recommend getting a trade-in value letter from the Chevy dealer (talk to the used car manager) stating that the lower value is due to previous damage done to the car, even though it has been repaired.
With the appraisal AND the letter from the dealer, submit the claim. But be prepared to fight it, or to take less. Insurance companies aren't in the business of making non-customers happy.
So it's possible, but it doesn't happen by default, is not the norm, and is not always successful. But while the difference in value between a 9 mile Corvette and a 9 mile Corvette that's been repaired for a MINOR accident is small, it's not zero. Can't hurt to go for it.
My Range Rover, which MSRP'd for more than my Z06, was rear ended this spring - first accident I couldn't avoid since 1987. I just got it fixed and moved on with life because it's already 5 years old. So if your friend does plan to keep the car for 4+ years, the minor accident damage is likely not important on the car's value. Moreso on a Corvette than a Range Rover, though, I'd bet.
They are aspirational purchases and people want their dream cars to be "right".
The car will be fixed at a body shop, hopefully of your friend's choosing.
State Farm will pay for the repair.
That is all.
There will not be any extra money changing hands due to "reduced value" unless you file a specific claim for that and pursue it successfully. Iowa isn't a no-fault state, but even so, no insurance company is going to be writing fat checks to make anyone feel better because their too-new car got hit by one of their policy holders.
What you CAN do is file a claim for reduced value, which they will likely fight. An appraisal is the first step to a successful claim, even if you don't plan to sell the car. The diminished value is based on how much less money the car would be worth if you were to sell it. Have the appraiser, if they will agree, provide an alternate value if the car had never been damaged, and that's the amount you'll claim for.
About 70 percent of used cars are sold to dealers, who will look up the history of a car to see if it has been in an accident. So, too, will many private buyers. Thus I would recommend getting a trade-in value letter from the Chevy dealer (talk to the used car manager) stating that the lower value is due to previous damage done to the car, even though it has been repaired.
With the appraisal AND the letter from the dealer, submit the claim. But be prepared to fight it, or to take less. Insurance companies aren't in the business of making non-customers happy.
So it's possible, but it doesn't happen by default, is not the norm, and is not always successful. But while the difference in value between a 9 mile Corvette and a 9 mile Corvette that's been repaired for a MINOR accident is small, it's not zero. Can't hurt to go for it.
My Range Rover, which MSRP'd for more than my Z06, was rear ended this spring - first accident I couldn't avoid since 1987. I just got it fixed and moved on with life because it's already 5 years old. So if your friend does plan to keep the car for 4+ years, the minor accident damage is likely not important on the car's value. Moreso on a Corvette than a Range Rover, though, I'd bet.
They are aspirational purchases and people want their dream cars to be "right".
Last edited by davepl; 05-21-2016 at 09:33 PM.
The following users liked this post:
ZenicaPA (05-23-2016)
05-21-2016, 09:36 PM
#15
trade the car back in for another 1.best thing to do.give dealer insurance check and the car.best way to protect yourself down the road.
Last edited by lordofwar; 05-21-2016 at 09:37 PM.
05-21-2016, 09:38 PM
#16
Melting Slicks
Here's what's going to happen.
The car will be fixed at a body shop, hopefully of your friend's choosing.
State Farm will pay for the repair.
That is all.
There will not be any extra money changing hands due to "reduced value" unless you file a specific claim for that and pursue it successfully. Iowa isn't a no-fault state, but even so, no insurance company is going to be writing fat checks to make anyone feel better because their too-new car got hit by one of their policy holders.
What you CAN do is file a claim for reduced value, which they will likely fight. An appraisal is the first step to a successful claim, even if you don't plan to sell the car. The diminished value is based on how much less money the car would be worth if you were to sell it. Have the appraiser, if they will agree, provide an alternate value if the car had never been damaged, and that's the amount you'll claim for.
About 70 percent of used cars are sold to dealers, who will look up the history of a car to see if it has been in an accident. So, too, will many private buyers. Thus I would recommend getting a trade-in value letter from the Chevy dealer (talk to the used car manager) stating that the lower value is due to previous damage done to the car, even though it has been repaired.
With the appraisal AND the letter from the dealer, submit the claim. But be prepared to fight it, or to take less. Insurance companies aren't in the business of making non-customers happy.
So it's possible, but it doesn't happen by default, is not the norm, and is not always successful. But while the difference in value between a 9 mile Corvette and a 9 mile Corvette that's been repaired for a MINOR accident is small, it's not zero. Can't hurt to go for it.
My Range Rover, which MSRP'd for more than my Z06, was rear ended this spring - first accident I couldn't avoid since 1987. I just got it fixed and moved on with life because it's already 5 years old. So if your friend does plan to keep the car for 4+ years, the minor accident damage is likely not important on the car's value. Moreso on a Corvette than a Range Rover, though, I'd bet.
They are aspirational purchases and people want their dream cars to be "right".
The car will be fixed at a body shop, hopefully of your friend's choosing.
State Farm will pay for the repair.
That is all.
There will not be any extra money changing hands due to "reduced value" unless you file a specific claim for that and pursue it successfully. Iowa isn't a no-fault state, but even so, no insurance company is going to be writing fat checks to make anyone feel better because their too-new car got hit by one of their policy holders.
What you CAN do is file a claim for reduced value, which they will likely fight. An appraisal is the first step to a successful claim, even if you don't plan to sell the car. The diminished value is based on how much less money the car would be worth if you were to sell it. Have the appraiser, if they will agree, provide an alternate value if the car had never been damaged, and that's the amount you'll claim for.
About 70 percent of used cars are sold to dealers, who will look up the history of a car to see if it has been in an accident. So, too, will many private buyers. Thus I would recommend getting a trade-in value letter from the Chevy dealer (talk to the used car manager) stating that the lower value is due to previous damage done to the car, even though it has been repaired.
With the appraisal AND the letter from the dealer, submit the claim. But be prepared to fight it, or to take less. Insurance companies aren't in the business of making non-customers happy.
So it's possible, but it doesn't happen by default, is not the norm, and is not always successful. But while the difference in value between a 9 mile Corvette and a 9 mile Corvette that's been repaired for a MINOR accident is small, it's not zero. Can't hurt to go for it.
My Range Rover, which MSRP'd for more than my Z06, was rear ended this spring - first accident I couldn't avoid since 1987. I just got it fixed and moved on with life because it's already 5 years old. So if your friend does plan to keep the car for 4+ years, the minor accident damage is likely not important on the car's value. Moreso on a Corvette than a Range Rover, though, I'd bet.
They are aspirational purchases and people want their dream cars to be "right".
it was a pia lot of pape work., but if you can show value before and value after they will pay
05-21-2016, 10:56 PM
#17
Instructor
There has never been in the history of automobiles a car worth more money because it has been in an accident. Diminished value is real and is separate from all repair cost and in this day and time with Car Fax and others reporting companies everybody know your cars history. Unless your state has a specific law that prohibits DM you are leaving money on the table. I deal with this on a daily basis and when it comes time to sell your wrecked Vette it will be less valued than an unwrecked vehicle of the same and you better have the difference already in your pocket. The estimated damage from the OP was around 8k at 60% that's only $4800.00 and you'll be lucky if that's all you lose at resale.
05-22-2016, 10:06 AM
#20
Melting Slicks
Now here is the real deal. First check that your state even recognizes diminished value. Here in PA. they don't. I had a buddy of mine hit a deer with his 2013 Z06 and it did $6800 in damage. He took the car a Chevy dealer because they have a really good paint guy. About 3 months after having the work done he had a car fax done and all it said was that it was in for service. I'm a used car dealer and can tell you that Carfax is a joke. I have had guys tell me that they had the body shop not turn anything in so Carfax never knew anything about a vehicle being in a accident. Bottom line just tell him to talk to the body shop that is doing the bodywork.. You would be surprised how many vehicles are out there that Carfax says was never in a accident but really were. If someone pays cash to get a vehicle fixed Carfax would never know it..