Sister’s Car - Crash & Depreciation payment

Gordon Gekko

Registered User
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6,169
Hi,

Hopefully someone can help…

Someone crashed into my sister’s car recently. It’s a 211 car and quite a lot of damage was done, about €6k worth. The car was around €60k back in January.

The other driver admitted liability and it’s being handled by his insurance company.

The car has been repaired. However, there is the outstanding issue of a “depreciation payment”, something I have to admit I’d never heard of. But it makes perfect sense.

What doesn’t make sense is what’s being offered, around €900. Surely the issue is that a €60k 211 car that’s been in a crash is worth less than one that hasn’t? And the differential should be a lot more than €900?

Logically, shouldn’t it be €3-6k?

Many thanks.
 

cremeegg

Registered User
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3,798
This is why we have the legal system we do.

Instruct a solicitor. Wait 3-5 years, you will get more than you asked for. either from the judge or more likely in a settlement.

Be sure to tell your solicitor that you have no money to pay them they will have to take their fee out of the settlement. If you cannot get a solicitor to act on this basis, take what the insurer is offering, but I suspect you will have little difficulty in finding a solicitor.
 

Gordon Gekko

Registered User
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6,169
It seems grossly unfair.

The car was €60,000 in January. So it’s probably worth €55,000 now.

It’s been in a serious accident.

Take two cars, both €60,000 in January, both identical. One has been in a crash and one hasn’t. What’s the difference in value between the two?

On no planet is it €900!
 

Brendan Burgess

Founder
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47,243
quite a lot of damage was done, about €6k worth.

Has the damage any long term ill effect after it has been repaired?

If she is not selling the car for a few years, does it matter?

Do you have to disclose the fact that a car was in a crash to a buyer or would it be obvious if you did not disclose it?

What I am getting at here is that if they replaced a wing, so what? If you had crashed it while your sister was away on holdidays and got it repaired before she came home, would your sister know?

Brendan
 

mathepac

Registered User
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7,739
Do you have to disclose the fact that a car was in a crash to a buyer or would it be obvious if you did not disclose it?
Yes if asked a direct question by a private buyer. €6k worth of repairs is more than a wing, points to mechanical rather than just superficial bodywork damage. €900 isn't a bad offer for depreciation compensation, which is typically 10%.

Was there time off work, driving to and from carhire firm, taxi-costs, other costs often generically referred to as "uninsured costs"?
 

deanpark

Registered User
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256
Has the damage any long term ill effect after it has been repaired?

If she is not selling the car for a few years, does it matter?

Do you have to disclose the fact that a car was in a crash to a buyer or would it be obvious if you did not disclose it?

What I am getting at here is that if they replaced a wing, so what? If you had crashed it while your sister was away on holdidays and got it repaired before she came home, would your sister know?

Brendan
If it results in an insurance claim doesn't the crash/ insurance incident come up on a "Cartell" report - most people get one of these when they buy a 2nd hand car.
 

Gordon Gekko

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6,169
It doesn’t strike me as particularly fair.

It necessitates lying to any future purchaser which isn’t right.

An eight month old €60,000 car that’s been in a crash and had €6,000 worth of damage done to it can’t be worth only €900 less than the same car with no crash history.

It just can’t; this is a scam by the insurance industry (yet another one).
 

Gordon Gekko

Registered User
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6,169
Yes if asked a direct question by a private buyer. €6k worth of repairs is more than a wing, points to mechanical rather than just superficial bodywork damage. €900 isn't a bad offer for depreciation compensation, which is typically 10%.

Was there time off work, driving to and from carhire firm, taxi-costs, other costs often generically referred to as "uninsured costs"?
Car-hire was covered for a number of weeks whilst the insurance company and the garage got their act together.

There were no additional costs really.
 

Peanuts20

Registered User
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645
AA estimate that a new car will depreciate by between 10% and 40% in it's first year of use, depending on it's make, type and mileage. I don't think it would be unreasonable to assume here that the car would have lost 10k in value at least by the end of the year without a crash.

One thing she could do here is ask the main dealer for the trade in value now and the trade in value if it had not been in a crash. Put a claim in for that amount, perhaps backed by a written quote from the dealer and see what the insurance companies say and then go from there
 

Brendan Burgess

Founder
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47,243
€6k worth of repairs is more than a wing, points to mechanical rather than just superficial bodywork damage.
Gordon
What sort of repairs were done?

Would a detailed inspection by a competent engineer conclude that the car had been repaired and, as a result, was in a worse condition?

Brendan
 

Leo

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13,872
€6k in costs might also cover a repair that was carried out to bring the car back to original condition, thus having negligible effect on value.
 

RetirementPlan

Registered User
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429
It's years since I was involved in this area (as a claimant) but there was an understanding at that stage that you could claim an additional 10% of the ex-vat cost of the repair for depreciation.
 

NoRegretsCoyote

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4,040
Not necessarily, and less likely unless it's recorded as a Cat B.
I've very little car knowledge.

Suppose there are two otherwise identical cars on the forecourt, the only difference is that one has had €6k of repairs after an accident, the other hasn't. Personally I would look for a material discount for the one that had had repairs.

I know this is very hard to quantify but the difference is probably going to be more than 10% of the repair cost.
 

Leo

Moderator
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13,872
I've very little car knowledge.

Suppose there are two otherwise identical cars on the forecourt, the only difference is that one has had €6k of repairs after an accident, the other hasn't. Personally I would look for a material discount for the one that had had repairs.

I know this is very hard to quantify but the difference is probably going to be more than 10% of the repair cost.
Most people trading in a car to a garage don't voluntarily disclose accidents, garages don't tend to ask as they'll base their valuation on the actual condition of the car when presented. If the repair was well done, they're unlikely to notice.

The majority of people buying from a forecourt don't pay for a comprehensive vehicle check, and even if they do, they just show whether the car was registered in the National Vehicle and Drivers File as being written off or scrapped. They don't have access to any records that would detail every crash or repair.
 

Brendan Burgess

Founder
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47,243
If the repair was well done, they're unlikely to notice.

Thanks Leo. That is the point I was trying to make.

If they replaced the bumper with an original, then it makes no difference.

If they had to dismantle the car and straighten the chassis and the car is still off kilter, then it would be a different matter. But it's unlikely that they had to do that if it was "only" €6,000 on a €60,000 car.

Brendan
 

Gordon Gekko

Registered User
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6,169
Thanks All.

She has a baby on the way so I’ve told her it’s not worth the grief…she should accept the €900.
 
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