Need advice about Diminished Value on my 2003 coupe

[FlipSide]

17 days ago my 50th Anniversary Red coupe was hit from behind. I had driven it home just 3 months earlier. When I took delivery it had only 4600 miles on it. At the time of the accident I had 6900 miles. The car has been in the shop for 15 days now and the repairs are almost complete. The total repair bill is $2750 and some change. The at fault insurance company is paying for the repairs, but now I need to negotiate with the diminished value adjuster for DV compensation.

I have no doubt that, from the outside, the car will look just as good as it did before the accident, if the painting is done right, because they are completely replacing the energy absorber, the rear fascia and the license plate / lamp assembly. However, the fiberglass trunk compartment / tub was damaged down on the lower corners and has only been patched. Apparently, it's too much trouble to replace it because of how well it's glued to the frame and the fact that the roof would have to come off. Both quarter panels were also slightly damaged on the inside tab at the top near the hatchback lid but even with the slight repair they will have to repaint both quarter panels.The at fault insurance adjuster tells me that they cannot discuss the DV until the car is repaired. I am still not sure if they will even honor the claim or turn me down outright.

Now I will have to come up with a number for the DV. I know that this accident has definitely created additional depreciation on my corvette, but the question is "how much"? Even though there may be no signs of the damage from the outside, there is still the fact that this car is no longer "original"

So the question is this. How much of a decrease in the market value would you, as a hypothetical buyer who knows the extents of the damage, be comfortable with in buying a potential collectors car which is now no longer officially in mint condition and original? What kind of a percentage decrease below market value would you want, 10%, 20% more? I know it depends, but I would appreciate some estimated guess as to what you might expect.
I contacted http://www.autoloss.com/ and got a phone call from someone there a few days ago. he left a message and said he'd call back the next day but never did. I have tried calling him for three days but there is no answer at the number he gave me.

I need to get an independent DV appraisal but I thought it would be helpful and interesting to see if the forum members have any thoughts on how much this accident potentially devalues my beautiful vette.

Thanks,
Kirk

 

[KANE]

17 days ago my 50th Anniversary Red coupe was hit from behind. I had driven it home just 3 months earlier. When I took delivery it had only 4600 miles on it. At the time of the accident I had 6900 miles. The car has been in the shop for 15 days now and the repairs are almost complete. The total repair bill is $2750 and some change. The at fault insurance company is paying for the repairs, but now I need to negotiate with the diminished value adjuster for DV compensation.

I have no doubt that, from the outside, the car will look just as good as it did before the accident, if the painting is done right, because they are completely replacing the energy absorber, the rear fascia and the license plate / lamp assembly. However, the fiberglass trunk compartment / tub was damaged down on the lower corners and has only been patched. Apparently, it's too much trouble to replace it because of how well it's glued to the frame and the fact that the roof would have to come off. Both quarter panels were also slightly damaged on the inside tab at the top near the hatchback lid but even with the slight repair they will have to repaint both quarter panels.The at fault insurance adjuster tells me that they cannot discuss the DV until the car is repaired. I am still not sure if they will even honor the claim or turn me down outright.

Now I will have to come up with a number for the DV. I know that this accident has definitely created additional depreciation on my corvette, but the question is "how much"? Even though there may be no signs of the damage from the outside, there is still the fact that this car is no longer "original"

So the question is this. How much of a decrease in the market value would you, as a hypothetical buyer who knows the extents of the damage, be comfortable with in buying a potential collectors car which is now no longer officially in mint condition and original? What kind of a percentage decrease below market value would you want, 10%, 20% more? I know it depends, but I would appreciate some estimated guess as to what you might expect.
I contacted http://www.autoloss.com/ and got a phone call from someone there a few days ago. he left a message and said he'd call back the next day but never did. I have tried calling him for three days but there is no answer at the number he gave me.

I need to get an independent DV appraisal but I thought it would be helpful and interesting to see if the forum members have any thoughts on how much this accident potentially devalues my beautiful vette.

Thanks,
Kirk

I can't give you any numbers, but I can offer some insight for resale purposes.

I think your level of damage means very limited diminished value- if any at all. As long as the repair is done CORRECTLY, I'd leave it alone and just not worry.

Besides, your mileage is so ridiculously low... that would compensate for any reduction in value.

Survivor cars are unmolested; but thats not to say they haven't had a repair or two over the years. What you need to worry about when dealing with damage is SIGNIFICANT damage (ie: such as a frame being bent). Say you had a break in and the front and rear glass was smashed. It isn't cheap to replace those, however, it wouldn't diminish the value as far as anyone is concerned.

Where things get complicate is with older cars. They can usually sustain a lot more damage and sell without effect so as long as two things are present: significant market demand for a particular mode option and that the repairs are acceptable. What this means is that a C2 will sell for $$$$ in a variety of conditions because market demand for any of those cars is so high.

2003 Vettes are still common, but if the repair is acceptable and the mileage is low (low mileage makes a car rare) then you will be fine.

I don't think that is what you want to hear, but maybe that will help ease your fears if you have any for resale. As for a number, what I've aways used for insurance companies- they should offer you 20% of the repairs (parts & labor).

 

[Fast Freddie]

and who's to say any type of repair had never been completed BEFORE you got the car ? Ya just never know.......

 

[FlipSide]

<snip>
...2003 Vettes are still common, but if the repair is acceptable and the mileage is low (low mileage makes a car rare) then you will be fine.

I don't think that is what you want to hear, but maybe that will help ease your fears if you have any for resale. As for a number, what I've aways used for insurance companies- they should offer you 20% of the repairs (parts & labor).

Thanks loads for the reply. I wanted to hear it either way. If the car does not lose much value because of the "relatively minor" damage and having low miles then I am good with that. You've given me hope that the DV from this accident may not be that much of a factor if and when it comes time for resale. I appreciate your advice which I know has years of experience behind it.

 

[FlipSide]

and who's to say any type of repair had never been completed BEFORE you got the car ? Ya just never know.......

It's true. Carfax and Autocheck do not report everything that may have happened to a car. If there had been damage before I bought it, then one or both of the two previous owners lied to someone about the condition of the car. Of course, I don't believe that the guy I bought it from would have done that, but no one can ever really know. Of course I could always take that approach when I sell it and not say anything....but.... it's not in my nature.

 

[Erik S. Klein]

If a claim will show on CarFax then I believe you should be entitled to a diminished value. The problem is that it will change with the value of the car. If it's 10% of the current value it would be a few thousand dollars but if you try to sell the car with damage in 2044 the few percent might be $100K in 2044 dollars. . .

 

[redvett]

and who's to say any type of repair had never been completed BEFORE you got the car ? Ya just never know.......

Any accident repair must by law be recorded to carfax & you can bet the insurance company will since its paying. The history it there.
I myself check any vehicle i buy thats used.

 

[warren s]

Any accident repair must by law be recorded to carfax & you can bet the insurance company will since its paying. The history it there.
I myself check any vehicle i buy thats used.

That’s not true.

No one is under any legal obligation to report anything to Carfax. Carfax is a private company that retrieves records from the DMV. I have used Carfax numerous times and it never reported any car I looked at were involved in collisions, and most were, and were repaired with funds from the an insurance company. There is even a disclaimer in Carfax reports that states the information is obtained from various sources and may not be a conclusive history of the vehicle.

Insurance companies also may or may not report accidents to the DMV.


I hope the repair turns out to your satisfaction and I am sure all here are happy you were not hurt.

 

[FlipSide]

Any accident repair must by law be recorded to carfax & you can bet the insurance company will since its paying. The history it there.
I myself check any vehicle i buy thats used.

That's exactly why I think the value of my car will diminish. If the insurance company sees to it that the repair is recorded with carfax, then there will be a perceived loss of value by any potential buyer who saw it listed with carfax.

So ironically, it's the insurance company itself that creates the diminished value that they would then have to pay for.

 

[warren s]

Take a look at a Carfax report.

It clearly states that not all accidents will be reported to Carfax. (Nor is there any obligation to do so)

 

[FlipSide]

Take a look at a Carfax report.

It clearly states that not all accidents will be reported to Carfax. (Nor is there any obligation to do so)

The collision rep processing my vette said he has seen cars in much worse shape, even with frame damage, that never showed up on carfax.

 

[FlipSide]

That’s not true.

<snip>


I hope the repair turns out to your satisfaction and I am sure all here are happy you were not hurt.

Thanks, only a bruised ego. I'll find out next week how the car turned out. hnoes