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Discussion Starter #1
Recently had someone run a stop sign and hit me in my right rear. Did $7000 worth of damage. I only owe $17K on my Tundra CM, and I usually trade every 3 years. Now I have lost at least $5K in value due to the damage. Insurance should pay for lost equity along with paying for the repairs. Now I am faced with either keeping my truck or taking a serious bath on it. It's just not right, or fair.

A 2008 CM with 30K miles like mine sells used between $21K and $24K. If I tell a dealer I want $20K for it and play hard ball negotiating, they are probably going to check the Car Fax. To be honest, if they put it up on a rack they will be able to tell it has been repaired.

Alabama does not allow diminished value claims
 

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Recently had someone run a stop sign and hit me in my right rear. Did $7000 worth of damage. I only owe $17K on my Tundra CM, and I usually trade every 3 years. Now I have lost at least $5K in value due to the damage. Insurance should pay for lost equity along with paying for the repairs. Now I am faced with either keeping my truck or taking a serious bath on it. It's just not right, or fair.

How's that? Its wrecked, it will get fixed, its still worth what its worth.... am I missing something?
 

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If you drive a nicer than average vehicle, you usually get screwed in situations like yours. If you drive a clunker, you usually come out pretty good.

Its almost like a tax.

What if you were driving a $100K sports car? Your car would now be in a major accident, and worth much less.

What if you were driving a $800 Neon? You would probably be walking away with a $1500 rite-off cheque.
 

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Some states have laws addressing this. Georgia, I think, is one. The at fault party's insurance carrier will reimburse you for the loss in value following repair. I made a claim years ago on an Explorer POS. I got a couple of hundred. Not much. But, considering I wasn't expecting it... and it was a POS...

*edit*

I think it was Georgia. Might have been South Carolina. Moved around from time to time. Point is, each state has it's unique laws pertaining to fault and liability. Not all are the same.
 

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Discussion Starter #5
How's that? Its wrecked, it will get fixed, its still worth what its worth.... am I missing something?

You take 2 equal 2008 Tundra Crew Max trucks, one that has been wrecked and repaired and one that has not. Once the potential buyer gets the car fax showing the accident, the value drops considerably. I guess I may not understand what you mean by its still worth what its worth, only, well, yes, its worth much, much less.
Would you pay the same price for either one? I would not, as most people would not either.
The Toyota Dealer that did the repairs did a good job, but that is not the point. I would like to be able to use my equity to get into a new truck, now the equity is gone.

My wife is an insurance adjuster, and even she agrees with me. Now, the only way you can recover equity in Alabama is to file suit, and hope you win. Even then you have legal fees to deal with.
 

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You take 2 equal 2008 Tundra Crew Max trucks, one that has been wrecked and repaired and one that has not. Once the potential buyer gets the car fax showing the accident, the value drops considerably. I guess I may not understand what you mean by its still worth what its worth, only, well, yes, its worth much, much less.

You said you trade every 3 years.... the dealer doesn't care. They are still gonna low ball the heck out of your trade-in regardless if it has a flaw on carfax, if they even check it. My dealer has never checked the carfax on anything (4) I've traded.
 

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You need to submit a claim for something called 'Diminished Value'. Google it for the specifics in your state. The term you need is 'Diminished Value'. Insurance companies try to skirt it, but you can claim it in most states.

Fact is, a wrecked and repaired car is worth less. Anyone who thinks otherwise, if there were two trucks side by side, same specs, same price, would you buy the one that was wrecked and repaired or the on that had a clean history? Only reason you would buy the wrecked one, no matter how good the repair is price
 

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Discussion Starter #8
You said you trade every 3 years.... the dealer doesn't care. They are still gonna low ball the heck out of your trade-in regardless if it has a flaw on carfax, if they even check it. My dealer has never checked the carfax on anything (4) I've traded.
They have to resell it to recoup their trade allowance. With all the Car Fax commercials on TV now, people do ask for them. The last 3 I traded, as far as I know the dealer did not check the Car Fax, they may have. They do not know how much I owe, I tell them how much I want for it, and how much I will pay for a new one, then negotiate from there. Once they find out it's been wrecked, my negotiating power is diminished.

Alabama does not allow diminished value claims.
 

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I would like to be able to use my equity to get into a new truck, now the equity is gone.
If you owe 17K... I don't see much equity. Maybe 3 or 4K?...

My wife is an insurance adjuster, and even she agrees with me.
I'm sure she does.... the bottom line is, we don't need anymore reform. We don't need the government involved in anything else.....
 

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You could bring suit against the offender's insurance, but you have to prove diminished value. If the repair was to "like new", you won't (shouldn't) win. There's a big difference between "diminished value" and "perceived diminished value". The latter is just opinion, and won't normally be "reimbursable". Basically, you have to show that the truck really is worth less now, not just perception.
 

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They do not know how much I owe, I tell them how much I want for it, and how much I will pay for a new one, then negotiate from there.

You have to tell them, it works like this: take the selling price of the vehicle you're buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.
 

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You have to tell them, it works like this: take the selling price of the vehicle you're buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.
you do not have to tell them up front what your payoff is. if you are in that practice then you are getting screwed. they want that info on purpose to give u just enough to satisfy you. after they tell you how much they will give you is when you tell them what the payoff is, etc...

and for people who say there is no diminished value, come on...really? where have you been??? carfax commercials are whats really made the difference but the fact remains that anytime a vehicle has been repainted or repaired its going to hurt resale/trade in because it has a stigma..think about...unless you are a retard, if you are looking at two identical trucks, and one has been repaired and one is factory fresh, you better go for the factory fresh one..that makes the repaired one less desirable, and automatically worth less since they have to reduce the price to sell it. pretty much common sense.


as far as diminished value goes....when our benz got rear ended in 08, the total damages were 16k bucks. they wouldnt write it off since it was barely a year old and didnt come to their magical amount to total it. we settled for just over 4k in diminished value after i hired an appraiser specific to DV claims and paid him 150. they initially said no DV, then offered half that. i paid the 150 for the appraisal and got basically right at what we did lose in it. we just sold the car and every lot we went to they said because of the carfax they could only give us XXX bucks...and it was consitantly 3500-4300 less than if it didnt have a carfax report history. and thats at 9 different dealers. so yeah, they do check the carfax. and yes, dealers DO check carfax...AND they make you sign paperwork saying the car hasnt had any body repairs that havent been disclosed etc...and then the one i just signed even said something along the lines of i was responsible for any monetary losses due they incurr due to my misrepresentation of the condition or history...so yeah, the do check it. all it takes is a few moments for them to do it.
 

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you do not have to tell them up front what your payoff is. if you are in that practice then you are getting screwed. they want that info on purpose to give u just enough to satisfy you. after they tell you how much they will give you is when you tell them what the payoff is, etc...
I guess you wouldn't have to tell them up front, but its only a matter of time before they know... And I'm not in that practice, I pay cash or I don't bring it home.... including the 2010 Lexus I just bought. ;)


so yeah, they do check the carfax. and yes, dealers DO check carfax...AND they make you sign paperwork saying the car hasnt had any body repairs that havent been disclosed etc...and then the one i just signed even said something along the lines of i was responsible for any monetary losses due they incurr due to my misrepresentation of the condition or history...so yeah, the do check it. all it takes is a few moments for them to do it.
So yours got checked... it doesn't mean they all do, maybe its a Benz thing? Our last trade in had body work done, the dealer never mentioned it or tried to use it as leverage. I also never signed anything about any previous repairs, wrecks, etc... Maybe things are different in Southern Indiana, or maybe my dealer is so slick that I didn't realize what they where doing.... but I think they would've thrown the body work on my wifes Solara up in our face on the last trade.... if they would've known about it.
 

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and for people who say there is no diminished value, come on...really? where have you been???

...unless you are a retard

... automatically worth less since they have to reduce the price to sell it. pretty much common sense.
I won't argue for or against DV in this case, but this isn't a matter of personal opinion or what dealers "think". It's ultimately a legal issue, but an insurance company may pay "some amount" just avoid court expense. Not because they're wrong (legally), but because it's less expensive. Apparently, a few states require DV consideration, but most do not.

A quick search found Diminished value payments when your car has been in a wreck .
Quote: For example, in Carlton vs. Trinity Universal Insurance in Texas in 2000, the court ruled that diminished value "cannot be deemed a component part of the cost of repair or replacement," and therefore an insurer is not contractually liable to cover a loss in value.
 

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I won't argue for or against DV in this case, but this isn't a matter of personal opinion or what dealers "think". It's ultimately a legal issue, but an insurance company may pay "some amount" just avoid court expense. Not because they're wrong (legally), but because it's less expensive. Apparently, a few states require DV consideration, but most do not.

A quick search found Diminished value payments when your car has been in a wreck .
Quote: For example, in Carlton vs. Trinity Universal Insurance in Texas in 2000, the court ruled that diminished value "cannot be deemed a component part of the cost of repair or replacement," and therefore an insurer is not contractually liable to cover a loss in value.
those cases dealt with first party claims (you are at fault for example, and are filing under your own insurance policy, and your own contract with your own insurance company can exclude DV claims)

3rd party claims, such as the one discussed by the OP, can be filed on for DV in most states, texas included. its part of the liability of the assshat that hit you.

look at it this way. we all KNOW the car is depreciated after a repair, no matter how "correct" it is. the value is diminished. no matter how you look at it. no ifs ands or butts. some more than others. any dealer worth a crap does carfax for one thing. if they dont, they just sell crap anyway to people who dont care. but for a late model vehicle, a carfax report is detrimental if it shows accident history. even w/o the report, any sign of an accident hurts the value. period. for one thing, they cannot certify it as a certified preowned vehicle, which is all the rage on used car lots. if it has had body damage (some makers allow one panel, but not more than one panel to be repainted, etc) they cannot certify it so its worth a couple grand less automatically just because its not certified...then you have the stigma of it being a wrecked/repaired vehicle and you get more loss.

here's a neat trick. go to kelly blue book. it even has a spot to put if its had body work or not...you can see IT DOES AFFECT VALUE. period.

back to the OP, sorry you live in a state thats screwed up liek that, hope you can get some DV out of it in civil court or something....

like taking a vintage painting. its collectible and worth XXX dollars. oops i punched a hole in it. someone comes in and fixes it. its fixed. looks fine. cant really tell. but now its worth alot less. same thing with a car or truck.
 

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unless you are a retard
It's ritard.

So yours got checked... it doesn't mean they all do, maybe its a Benz thing? Our last trade in had body work done, the dealer never mentioned it or tried to use it as leverage. I also never signed anything about any previous repairs, wrecks, etc... Maybe things are different in Southern Indiana, or maybe my dealer is so slick that I didn't realize what they where doing.... but I think they would've thrown the body work on my wifes Solara up in our face on the last trade.... if they would've known about it.
When I traded in my Chevy for this Tundra, I had to sign a form saying it hadn't been wrecked/repaired and I would be liable for any losses on their side due to undisclosed damage/repairs. But as mentioned earlier, it may vary state to state.
 

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look at it this way. we all KNOW the car is depreciated after a repair, no matter how "correct" it is. the value is diminished. no matter how you look at it. no ifs ands or butts.
Therein lies the problem. Insurance companies, and most courts, do not agree with that statement, thus they have the option to fight the claim if they choose. It's cheaper to pay 2nd parties than to be sued, so long as the $$ isn't exorbitant. FWIW, I fully agree with your position that value may be diminished (depending on the damage), but my opinion doesn't count in court. I do not agree that value is always diminished. If my bumper gets bent and I get a brand new one... no value loss at all. It's up to the OP to decide whether damage in his case poses an obvious/true "diminished value".
 

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Insurances companies don't like writing checks for dimished value because of the subjectivity. But it is a reality and something they will work with you on if you beat on them enough.
They are supposed to cover you for your loss, not just the repairs to make your truck look like it used to. Dimished value is part of that, you just have to pressure them for it.
 

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If you bring a Toyota to a Toyota dealer to trade it in, the chances of a CarFax being run are higher because they will most likely keep the vehicle and sell it on the lot.

If you bring a Toyota to a Chevy dealer, they may not worry that much about the CarFax because the car is most likely going to auction anyhow.

I would negotiate the price of the new truck to where you feel comfortable, letting them know there will be no financing and that your paying cash. Get to a comfortable number and hold them to it while you negotiate the value of your trade.
 

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In most cases you won't see much if anything for diminished value. The only true way to prove your damage is to sell the vehicle and then be able to document that you sold it for less than you would've if it wasn't wrecked. If an insurance company sez we'll give you $5, what's yer recourse, sue the other driver. In many states legal fee's aren't recoverable so you won't find many attorneys willing to help unless you write them a check up front. The whole diminished thing started as a class action lawsuit in Georgia, I belive, where a group of attorneys sued on first party claims because most policies at the time didn't exclude that type of loss. The courts ruled for the policyholders. The attorneys made a boat load of cash. The insurance companies immediately added exclusions to their policies excluding diminished value. As a result, DV spread around the country on third party claims. However, depending on the state where you live, you may be able to collect a few bucks. In other states like the author of this thread, you can't recover a dime...
 
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