Diminished value after a wreck in a model S

[Seven7]

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 .

Wow' I'm not sure what to say, thanks.

 

[brianman]

@dvguru - Welcome to the forum!

That said, I hope I never have to meet your WA counterparts. But I'm glad such people are around when we need them.

 

[EdgewoodOoo]

We have had three diminished value losses on three separate makes of cars against three separate insurance companies and can tell your members that only a diminished value appraisal that is formulated using actual dealer quotes from Tesla dealers will stand up in court. I will not name the appraiser who does his appraisals using that method because I don't want to be considered a spammer like dvguru but they are from Florida if you ever need them. I believe they are the only diminished value appraisers who take the time and make the extra effort to do their appraisals that way instead of simply running off auction results or using a formula that lists modifiers such as whether air bags went off, etc. We were seeking more than $10K in diminished value so we're glad we got a report from a serious appraiser because the settlement was very close to that amount without us having to go to court as we did on the first two claims.

 

[brianman]

Thanks for the info and welcome to the forum, Edge!

 

[edou]

Seven7 - curious what the settlement was. I am in a similar situation right now. Thanks!

 

[Curly Sue]

We have had three diminished value losses on three separate makes of cars against three separate insurance companies and can tell your members that only a diminished value appraisal that is formulated using actual dealer quotes from Tesla dealers will stand up in court. I will not name the appraiser who does his appraisals using that method because I don't want to be considered a spammer like dvguru but they are from Florida if you ever need them. I believe they are the only diminished value appraisers who take the time and make the extra effort to do their appraisals that way instead of simply running off auction results or using a formula that lists modifiers such as whether air bags went off, etc. We were seeking more than $10K in diminished value so we're glad we got a report from a serious appraiser because the settlement was very close to that amount without us having to go to court as we did on the first two claims.

Are you answering your PMs? Please contact me off list. I have located the independent appraiser from Fort Pierce, Florida that does the diminished value appraisals for Teslas, apparently there have been some changes recently in how Tesla's Palo Alto HQ is treating trade-ins with bad Carfaxes. Just would like to know if you traded your car in to Tesla or not. Good recommendation on the appraiser BTW, thanks. I don't want Tesla to have my VIN# and the info about the damage to my car just yet until I know the score.

 

[imherkimer]

Remember that Tesla already has your VIN#, and can get a lot of info about the condition of the car from the car itself. So I wouldn't worry too much about that.

 

[Curly Sue]

Remember that Tesla already has your VIN#, and can get a lot of info about the condition of the car from the car itself. So I wouldn't worry too much about that.

Not so sure that Tesla has my best interests at heart when it comes to diminished value. From my Google Alert: TESLA DIMINISHED VALUE AND LOSS OF USE CLAIMSTHE TESLA DIMINISHED VALUE PROJECT
If I want to trade my S in for a new Panamera after it had $40K in damage that included unibody repairs, the Porsche dealer will knock the trade-in value down by 25% or more. Tesla refuses to give a diminished value quote of more than 5% to an independent appraiser working on my behalf? What kind the H of support is that?

 

[Cal1]

Are you working with a lawyer yet? If not why? I learned the hard way not to trust insurance companies. Especially your own. My was a head on collision with a drunk driver committing suicide, totaling my truck. Two days hospital for me, 4 days intensive care for the wife. Highly likely you'll get screwed if you go this by yourself. You'll learn why there are so many lawyers that specialize in this type of law. They always do initial consult for free. The truck was a month old and I received full purchase value.

 

[yobigd20]

Not so sure that Tesla has my best interests at heart when it comes to diminished value. From my Google Alert: TESLA DIMINISHED VALUE AND LOSS OF USE CLAIMSTHE TESLA DIMINISHED VALUE PROJECT
If I want to trade my S in for a new Panamera after it had $40K in damage that included unibody repairs, the Porsche dealer will knock the trade-in value down by 25% or more. Tesla refuses to give a diminished value quote of more than 5% to an independent appraiser working on my behalf? What kind the H of support is that?

Tesla doesn't do any "repairs". these certified shops replace every single part with a brand new one thus making it no different than a car rolling off the line from the factory. Tesla wants the owners to have the best possible experience with the car which is to have it in perfect condition as if it was brand new again and was never in an accident to begin with. it's not like they're welding pieces back together. they just replace the whole thing. no used or repaired parts. therefore there's no "diminished value" since the car does not have any damage and its restored to factory original condition. that's why these repairs cost so much. they are replacing everything. I've seen repair bills as high as the price of a base S40, lol. it's not like their bending aluminium back or reusing the same bolts they used when taking the car apart. nope. every single part is brand new. the certified shops are like mini-tesla-factories as they can strip the car down to nothing and put it all back together again brand new.

 

[zwede]

Doesn't matter how well it was repaired. When you sell it you will get less. No one will buy a car that has been in a bad wreck for the same price as a car that has had no wreck. That's just reality.

 

[yobigd20]

Doesn't matter how well it was repaired. When you sell it you will get less. No one will buy a car that has been in a bad wreck for the same price as a car that has had no wreck. That's just reality.

Well I totally agree with you. But Tesla seems to disagree.

 

[Curly Sue]

Doesn't matter how well it was repaired. When you sell it you will get less. No one will buy a car that has been in a bad wreck for the same price as a car that has had no wreck. That's just reality.

Try telling that to any insurance company AND anyone who works for Tesla. Talk about heads in the sand.

 

[MyWifeandI]

My car was hit from behind a little over a year ago and held up very well (drove it home), but there was frame damage. I had to go through insurance to get the at-fault driver to pay and it went on carfax. The car has been repaired and is as good as new as a high end German shop did the work. They used a Celette bench for the frame. I used St. Lucie Appraisal from Fort Pierce, FL to provide me with an estimate of diminished value, which cost me $300. They estimated the car had lost about 25k in value, which seemed very high to me given how the car turned out, but I went with it. I submitted that report to the at-fault driver’s insurance company, GEICO, and after a bit of haggling was able to get $18,500 back.