is my damaged car worth anything? (insurance, luxury, salvage, best)
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The car is 2004 AUDI A4 3.0 Quattro with about 64K miles. I think the KBB value in good condition is $11K.
It was recently damaged in an accident and the repair estimate is about $9K. Are there businesses or people out there that would buy a damaged car for its parts?
I need to decided what I'm going to do with the insurance money I'm about to get, and knowing this would help me decide whether or not I will fix the car or take the money and sell the damaged car.
My buddy had a garage, the usual price he paid for junkers was $200 to $500.
Why isn't the insurance company fixing the car? A good collision shop can repair it to near new condition minus your deductible. With a settlement of $9k of a $11k car it should have been totalled.
I'm assuming your insurance company is paying you $9,000 for the damages and letting you keep the salvage - or dispose of it.
First of all, if it's totaled you may not be able to get it licensed to drive on the street even if it's repaired - or you may have to have it inspected before a new title is issued. It all depends on the laws where you live.
Second of all, if you put $9K into repairs, your car will probably worth something like $5 at best since it'll have a "salvage" or "rebuilt" title (again, depending on where you live). That may not matter if you want to drive it until it's worn out - but it'll be a problem if you want to sell it.
Also, if you have it rebuilt will you be able to insure it? If you do, and you're unlucky enough to get into a another accident, your settlement will again be for the current value of the car.....more like $5K, not $9K.....so you've lost the difference.
You may be able to do it....but it might not be the best decision....
My buddy had a garage, the usual price he paid for junkers was $200 to $500.
Why isn't the insurance company fixing the car? A good collision shop can repair it to near new condition minus your deductible. With a settlement of $9k of a $11k car it should have been totalled.
They are giving me the option. Fix it or take the payout.
I asked my insurance if they would total it, (like you said the repair cost is close to value), but they still wouldn't. Now, is that a law? In other words, if the cost of repair reaches a certain percentage of value, is the insurance company required to total? Because if it isn't, why would they total it which would end up costing them more.
I'm assuming your insurance company is paying you $9,000 for the damages and letting you keep the salvage - or dispose of it.
Yes
Quote:
Originally Posted by JoeCartpath
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You may be able to do it....but it might not be the best decision....
Just want to make sure I'm reading you correctly. It sounds like you are saying fixing it may not be the best option? And that I should just take the insurance money and try to sell the damaged car for parts? This is what I'm leaning towards.
That would be my choice. Dealers are really hurting for sales now, so you can probably spend $9K for a car that hasn't been wrecked....and you'll have a car that's now worth at least $9K...maybe more if you find a good deal. If you spend the $9K to fix the wrecked car, you'll probably have a car that's worth no more than $5K....maybe less.
There is no law that requires an insurance company to total a car. They could spend $11K to fix it if they wanted but, of course, they'll take the option that's likely to cost them less. If the damages are too close to the ACV (actual cash value) of the car...within 15% or so...they'll usually total it anyway since the final bill will often exceed the original estimate once hidden damage is found.
With this amount of damage to the car, it's highly unlikely that it can be repaired to anywhere close to it's "pre-accident" condition.
While many body shops can make it cosmetically like new, it's only cosmetic ....
There will be remaining issues with the structural integrity of the car, especially if they have to pull the chassis/frame back into close alignment. The metal will not have the strength/rigidity to withstand another blow, and will not perform correctly in another accident scenario.
There will also be niggling issues with electronics and electrical systems in this car after the repairs that will be difficult to eliminate to fully restore the car's functions. There's a world of difference between all of the controls, sensors, emissions systems, comfort/climate systems, remote control mirrors, cruise, engine management, etc ... of cars of this luxury level and simple cars of 40-50 years ago.
Far better to allow this car to be "totalled" and take as much money for it as you can and do NOT mess with it any further. If you retain possession of the car after the payout, it's best to sell it as a "junker" for parts. But I'd take the maximum "totalled" payout and let the insurance co worry about disposing of the car if I had the choice.
Take the car to your insurance companies appraiser. If they tell you something different, pay them your deductible, collect your check from them, and then wait another month or so and you'll get your deductible back after they've subrogated the claim with the other insurance company.
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