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Diminished value after a wreck in a model S

Discussion in 'Model S' started by Seven7, Nov 29, 2013.

  1. Seven7

    Seven7 Member

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    #1 Seven7, Nov 29, 2013
    Last edited: Dec 17, 2015
    Edited
     
  2. Lloyd

    Lloyd Active Member

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    If it correlates with other high end cars and airplanes, assuming the repairs are completed perfectly, the value decreases ~10% after the accident. Following that on a resale value the amount of deduction for the accident decreases about 1 to 1.5% for each year following the accident until it gets to about 1-3%. Thus if you keep your car for 10 years, the accident will likely not hurt you much. If you sell the car immediately the accident will have hurt you financially the most.
     
  3. wstuff

    wstuff Junior Member

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    I also live in Fl and don't understand the procedure but with 40K damage on a 6 wk old car I would of demanded that the insurance company write the car off. You would of had a new Tesla by now and I would think it would be an easy convince for the insurance company, after they pay out your rental and gas and inconvenience and damage compensation, and what they could get for the Tesla on salvage I don't think it would be a big leap to demand full restitution 6 weeks in. I'm sorry this happened to you but I would have never accepted a 40K repair on a brand new car. Hope it works out for you , I will be very interested in the outcome.
     
  4. Seven7

    Seven7 Member

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    #4 Seven7, Nov 29, 2013
    Last edited: Nov 29, 2013
    Oh, I fought with them and when it came down to it I had no say in the repair or replace. They told me it had to be 80% of the cars value before they would total it. The car sat for a month before the repairs were started while the insurance company messed around trying to get me to use my own insurance co. to do the repairs then the at faults insurance co would reimburse them. I talked to my own Ins. company and they wouldn't replace it at 40k either.

    My only avenue to get a new car out of it would have been to sell the wrecked car on my own, then collect the $40k and see how close it would have put me to a new modelS , Then Tesla had a substantial price increase that killed that idea.

    HERE'S THE IMPORTANT PART IF YOU ARE EVER IN THIS SITUATION The problem with this whole thing is in Fl. you can't collect for diminished value if your own ins. company pays for repairs, (even if they get reimbursed) that's why the at faults ins. company wouldn't do anything for the first month. The accident was an accident, I doubt the old guy did it on purpose, but the at faults insurance company's tactic of stalling when they knew I wanted my car back to try and avoid the diminished value claim is just total B.S. I'll get my day in court with them, and they will pay, and not just because it's a Tesla, you will go through this with any expensive or not widely produced car.

    The damage was the drivers side fender, suspension and door.
     
  5. adelman

    adelman R 539, S VIN S44, X Sig#1

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    Simple solution -- sell the car with a full disclosure as to the damage that occurred to it and the repair. Compare that to what Tesla will credit you on the value of the car for a trade-in an a nice new shiny P85+. The difference is your diminished value.

    I once helped a friend negotiate a "total" on a brand-new car that was heavily damaged in an accident. When the insurance company refused to total it, we suggested that they go ahead and repair it, we would sell it and claim the difference between it and the new price as a diminished value, and ask them to pay the difference. They totaled it.

    The Tesla price increase just increased the value of your car; don't forget to put that into the total when you explain what the value of your car is.
     
  6. Seven7

    Seven7 Member

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    I read my posts over again and I think I should add that the Tesla did hold up very well, there was no frame damage, no airbag deployment, and considering I got it right in the drivers door and got out and walked away says much on it's own. If I had been in my old (08) Corvette and taken that hit I would have gone for a ride in the ambulance.
     
  7. neroden

    neroden Happy Model S Owner

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    Yep. An arms-length sale establishes a value quite definitively. This is very good advice.
     
  8. Seven7

    Seven7 Member

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    Yes, good advice, only problem with actually selling would be paying the sales tax again, or am I reading this wrong...
     
  9. islandbayy

    islandbayy Active Member

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    I had a similar issue with my Ex Wifes car.

    2009 Nissan Cube, it was exactly 1 year and 2 days from purchase, 10k miles on it. She was at a stop sign and was rear ended. Car though, was only $15,400 loaded (I'm a good negotiator), $6k worth of damage. They wouldn't pay Diminished value. They stated "We don't legally need to pay that". I said, I don't care. They refused. I then faxed over a copy of a law suit where a individual in WI sued a insurance company to get diminished value, send along a posted note on that document when I faxed it telling them I get diminished value or we will be re-producing this case in court. They agreed to Diminished value. So I took it to Nissan to get appraised, they wouldn't accept the appraisal as Nissan Dealer is "biased". Took it next door to a Ford Dealer, they wouldn't accept that one either, as they are biased as I could go and purchase a new car from them.... Finally found a Independent appraiser about 30 miles north, took it their, now, mind you, both appraisals I got from the dealerships were around $1800-$2200 in diminished value.
    Now, the Independent appraiser, had past dealing with said insurance company (as in, they screwed him over tehe). So he gave it a $4k and some change diminished value appraisal. Now, I record all phone calls with insurance companies, as I deal with them for work (body shop). Faxed that appraisal over to the insurance company. They didn't want to pay it. Instead, they wanted to THEN go with the lower appraisals from the two dealerships. I said no, and that I had it recorded that they would not accept the appraisal from a dealership, and only a independent appraiser. So, to make a long story even longer, got the $4k :) They definitely were NOT happy. Now, the medical, still working on that one 3 years later....

    So, I got $4k diminished value on a $15,400 car. Before the car is even finished being reprieved if it is not already so, have a Inde appraiser come in and appraise the car for diminished value. I would also do a google search for a court case showing payment of diminished value of a auto that was won in court. It is still possible to get it totaled, and get reimbursed for extra costs incurred (gasoline) for having to drive a ICE, then valah, you get new car.

    Questions, send me a PM and I will give you my phone number.
     
  10. Seven7

    Seven7 Member

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    Thanks, I already hired an independent appraiser last month, it's going to be a fight, and I would probably settle up for around 10% of purchase price before I have to hire an attorney, after that add the attorneys fee. Florida has that strange "no fault" insurance, that's the first thing the at faults insurance told me when I called them from the rental car place and told her I have the whole accident on video, she was kind of like, so what. I'm going to ask for gas money, the law in Fl. is that gas for the rental car is paid for by the person driving it, but that probably didn't take into account cars that use no gas would be available. We will see, I never let stuff like this go

    If it had been my fault I would have made sure the other side got paid everything they were out. Thank you for your help Islandbayy.
     
  11. NigelM

    NigelM Recovering Member

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    Something the InsCo has likely never come across before....claim the fuel costs less the electricity that you would have used if you'd been driving your Model S; that's directly additional cost incurred by you that without argue you wouldn't have had before.
     
  12. hockeythug

    hockeythug Active Member

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    #12 hockeythug, Nov 30, 2013
    Last edited: Nov 30, 2013
    Prolly a dumb question but can you let Tesla repair the car directly? Due to uniqueness of the car I don't think I would feel comfortable having the car fixed at any old repair shop in town.
     
  13. lolachampcar

    lolachampcar Active Member

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    FPL is self insured and one of their trucks pulled right out in front of me, caused the accident and accepted 100% responsibility. They flatly refused to pay diminished value on my truck and I am not litigious. I got my butt handed to me when I sold the truck (it cost me 25% of the value).

    I agree with the suggestion that you trade the car in through Tesla for an equiv. loaner or demo. Of course, you can upgrade as well but this will peg the value of the damaged car beyond question and get you out of the unknown of owning a damaged Tesla. The insurance people do this for a living and thus the odds are good that you too will be done. It may cost you a few dollars out of pocket to go the trade to Tesla route but I would consider that a cost of driving with other people on the road and not expose yourself to the unknown of having the damage car liability moving forward.
     
  14. Brit4864

    Brit4864 Member

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    I have a lawyer working on compensation from State Farm based on diminished value, loss of use (car out of action for more than 7 weeks) and rental car equivalent after my no fault accident which is well documented here http://www.teslamotorsclub.com/showthread.php/19608-I-m-in-mourning! I'll let you guys know what happens. The claim also includes gas cost which wasn't that much but hey, it might as well go in, especially as it'll be hard for SF to say I would have had to pay for gas anyway.
     
  15. jthompson

    jthompson JThompson

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    In my lifetime my family has been rear ended by other drivers. Each time we got the car appraised after the repairs and then sent a letter to the insurance company (for the person who rear ended us) for the amount of diminished value. Each time we received a check without any question or pushback.

    I don't think it has anything to do with laws but rather common sense. If someone hits your car and your car loses value, you have the right no matter where you live to get that money back from the responsible party's insurance company.
     
  16. Seven7

    Seven7 Member

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    #16 Seven7, Dec 1, 2013
    Last edited: Dec 1, 2013
    Tesla replaced the front suspension at the Orlando service center and it had to go to a body shop in Orlando that Tesla approves for major repairs (Dayas), and they did have other Tesla cars there being fixed. Here's a tip in case your ever getting a Tesla painted, it has to air dry, they can't bake it because of the battery, so if your going to repaint just for the sake of cosmetics, pick a season that's got lots of dry air, not the rainy season, it'll never dry then.
     
  17. jkeyser14

    jkeyser14 Member

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    If it helps, I'll buy your car from you right now for $25k before you get to court. Then you at least have proof of the diminished value :)
     
  18. kunal

    kunal Member

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    Although not in Florida, I was in a pretty serious accident in my 911 Turbo. I used an online diminished value service and they wrote a report. The 911 turbo was about 4 years old at the time and he wrote a report for $25k in diminished value, I negotiated with insurance and they gave me $13k. I wouldn't settle for 10% on a brand new car.

    I don't know what the law is in Florida, but I also asked for loss of use. They denied loss of use as they claimed that they gave me a rental car and that covered my loss of use. I was stupid at the time and should have asked for a replacement that was equal to what I was driving. Unfortunately I did not get anything for loss of use in the claim.
     
  19. dvguru

    dvguru New Member

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    I am the owner of Direct Appraisal, HQ in Dallas Texas. We've service the Southwest area for 23 years, and we have performed nineLoss of Market Value appraisals on Tesla's since the first of the year. The average loss of market value comparable to your loss isaround 18k.
    Also, since it a tort loss the injured party has the remedy election. NOTthe at fault party's carrier. The proper measure of the loss would be thedifference in the property’s Fair Market Value* immediately before the wreck,less the Fair Market Value* immediately after the wreck! That is the legal definitionof diminished value.
    The carrier wants to pay restoration cost. In a tort, theyowe the damaged party MONEY not parts and material like your carrier may.
    So your possible recovery elements in a restoration remedyelection would be:
    Cost of repair – the amount to restore to pre-loss conditionrelative to appearance, function, and safety
    Loss of use - damages suffered because you are deprived fromthe USE of the vehicle (where can you rent a Tesla?)
    Differences in Value – Anydifference in value immediately BEFORE the wreck, versus immediately AFTERthe repair.
    So if they choose to pay for restoration they owe you “regardlessof the completeness of the repair” in a tort loss
    COR 40k
    LOU 3K ($100 a day for 30 days) > best guess<
    LOMV 18K

    As I see it - they owe you at least 61K. RIGHT NOW!!
    If it’s a regular S model, then you should have paid around80K so if the salvage value is 20K your back to even. And no since repairingthe vehicle. It’s much better for the economy to SELL another NEW car, thenrepair an old one!

    I suggest you make a demand for the full amount in writting immediatley. If they tell you that they want to wait to assess the DV after the repairs; ask them to tell the law and/or regulation that says that parties injured in a tort have to repair their property to get paid ALL that they're legally intited to recover!

    If you do not asert your right, you will loose them!

    Usual recognizeddefinition
    *“marketvalue” means the amount that would be paid in cash by a willing buyer whodesires to buy, but is not required to buy to a willing seller who is willingto sell, but is under no necessity of selling, and both having reasonableknowledge of the facts .

     
  20. pilotSteve

    pilotSteve Member

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    yes but taking the $7500 federal tax rebate (again) on the new vehicle.
     

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