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SeanSmith

2014 Silverado Collision Repair/Loss of Resale Value

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Posted (edited)

On May 6, I was stopped for traffic on the freeway when a jack-knob on his cell phone rear ended my 2014 Silverado LTZ extended cab doing 60mph with his early 80s Ford Ranger.  My receiver hitch and back bumper were bent and deflected down 8 inches with a small ding on the tailgate.  I was able to drive it away and everything seemed normal.  I took it to the collision place and found out the bed was bowed 8 inches up and the frame was likewise bowed and creased.  The body shop did a fantastic job over 7 weeks replacing the frame, bed, rear bumper, and hitch and the truck drives better than it did before the collision.  Also got the shop to replace the stock exhaust with a Borla S-Type cat-back system with dual chrome tips out the back since the original exhaust would cost exactly the same to replace and it was bent too.  There is literally no evidence of any prior damage and the truck looks new and sounds awesome with the new Borla system.  $25000 bill with the repair work, medical bills, and rental costs all told and paid so far by insurance with only a $100 deductible.

 

My question is, how will this affect resale on the truck and has anyone successfully gotten their insurance company to pay for diminished value after such an accident and rebuild?  Not quite sure how to go about filing such a claim after something like this happens.  

Edited by SeanSmith
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8 minutes ago, SeanSmith said:

On May 6, I was stopped for traffic on the freeway when a jack-knob on his cell phone rear ended my 2014 Silverado LTZ extended cab doing 60mph with his early 80s Ford Ranger.  My receiver hitch and back bumper were bent and deflected down 8 inches with a small ding on the tailgate.  I was able to drive it away and everything seemed normal.  I took it to the collision place and found out the bed was bowed 8 inches up and the frame was likewise bowed and creased.  The body shop did a fantastic job over 7 weeks replacing the frame, bed, rear bumper, and hitch and the truck drives better than it did before the collision.  Also got the shop to replace the stock exhaust with a Borla S-Type cat-back system with dual chrome tips out the back since the original exhaust would cost exactly the same to replace and it was bent too.  There is literally no evidence of any prior damage and the truck looks new and sounds awesome with the new Borla system.  $25000 bill with the repair work, medical bills, and rental costs all told and paid so far by insurance with only a $100 deductible.

 

My question is, how will this affect resale on the truck and has anyone successfully gotten their insurance company to pay for diminished value after such an accident and rebuild?  Not quite sure how to go about filing such a claim after something like this happens.  

Where did you buy the truck? Did you buy it new or used?

 

 

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1 minute ago, JimCost2014 said:

Where did you buy the truck? Did you buy it new or used?

 

 

I bought it from a dealership used in 2017 with 11,500 miles on it.  It was a lease repossession.

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8 hours ago, JimCost2014 said:

Where did you buy the truck? Did you buy it new or used?

 

 

What does that matter?

He wants to know how this accident will hurt the resale.

My guess is it will take a major hit because it should be considered a salvage. Good luck getting diminished value from the insurance company although a guy that I know with a salvage title 2015 Vette got around 7 grand back after he was ass ended .

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Posted (edited)
2 hours ago, dieselfan1 said:

What does that matter?

He wants to know how this accident will hurt the resale.

My guess is it will take a major hit because it should be considered a salvage. Good luck getting diminished value from the insurance company although a guy that I know with a salvage title 2015 Vette got around 7 grand back after he was ass ended .

Why would it be a salvage title? I didn't see anywhere in the OP that it was a total loss and repurchase situation. If it has a clean title, but an accident on the carfax or similar, then it would be subject to evaluation according to Blackbook/market/dealer discretion. Granted, this will most definitely be lower and why OP should look into a diminished value claim on the at-fault party's insurance. There are some articles, I think, on Edmunds and CarGurus about this topic, so you might go take a look at those. Definitely worth checking into. 

Edited by Jglew82
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It will definitely have a reduced value as carfax and autocheckwill no doubt have records that the vehicle was involved in a major accident. And diminished value is definitely something to pursue. You cannot go after your own company for diminished value compensation unless the at fault driver was also using the same insurance. You must file a claim with the other insurance. And don't expect your insurance to provide any assistance. It is something you will have to do on your own. Read up on it as much as you can. I ended up contacting a company that was very professional and provided a very good report that helped me with my claim. I had to provide them all of the documents from the auto body shop detailing damage and repairs and they did the rest. https://stlucieappraisal.net/

 

When going through the process, first I was told by the other insurance that they dont pay diminished value claims. I persisted and informed them that I would be hiring an attorney. Then they decided to open an investigation to start the claim. I provided them with the report I got from Port St Lucie. They sent out an adjustor to inspect the repairs. They didnt like certain things and required me to bring it back to body shop to be corrected. The body shop agreed and did the corrections and it didnt cost anything extra so this was actually a good thing. Next the other insurance tried a low ball payout and I declined and said it wasnt enough. We went back and forth a couple times and finally they provided me with what I consider a fair payout. When I traded in that vehicle later, the diminished value payment along with the trade in amount equaled pretty close to what the vehicle would have gotten me pre accident.

 

But just to add, for those not familiar with diminished value, it only applies if someone else is at fault. If you are at fault, you dont qualify for a diminished value claim.

 

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Good Info MikeyK101. I hope I never need it, but good to know.

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3 hours ago, dieselfan1 said:

What does that matter?

He wants to know how this accident will hurt the resale.

My guess is it will take a major hit because it should be considered a salvage. Good luck getting diminished value from the insurance company although a guy that I know with a salvage title 2015 Vette got around 7 grand back after he was ass ended .

A lease repo is way different from a salvage title. A salvage title gets issued when a vehicle is damaged and the repairs will cost more than it is worth to repair the vehicle. A lease repo is when a company takes back a vehicle for non payment. A new title can be issued and really is no different than buying any other used vehicle.

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Posted (edited)
13 hours ago, SeanSmith said:

My question is, how will this affect resale on the truck

If you documented everything and keep all the paperwork proving repairs were done by a qualified shop, I don't know why it would severely depreciate the truck. Talk to your local dealer and get their opinion on trade-in value, both now and pre-accident. Maybe you'd be offered 1-2000 less if you tried to sell private party and they saw the carfax with no other information. But your truck is already 5 years old. Year and mileage are bigger factors in determining price. I think having a truck that works and looks like it did before is more important than worrying about diminished value. If you think its as good as new, why wouldn't the next owner?

Edited by aseibel

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11 minutes ago, aseibel said:

If you documented everything and keep all the paperwork proving repairs were done by a qualified shop, I don't know why it would severely depreciate the truck. Talk to your local dealer and get their opinion on trade-in value, both now and pre-accident. Maybe you'd be offered 1-2000 less if you tried to sell private party and they saw the carfax with no other information. But your truck is already 5 years old. Year and mileage are bigger factors in determining price. I think having a truck that works and looks like it did before is more important than worrying about diminished value. If you think its as good as new, why wouldn't the next owner?

If there were 2 very similar trucks for sale and 1 had frame damage and the other was accident free, which one would you buy? As fat as the 1-2000 less, that isnt what a dealership is going to offer. If they know that a vehicle had extensive damage, even if properly and completely repaired, their offer will be considerably less. They may discount the price they try to sell it by 1-2000 but that is not what they will be prepared to pay you for it. And depending on the damage, there is also a strong possibility that they wont even put it out on their lot and will immediately send it off to the dealer auctions which is another reason why their offer will be considerably less.

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2 minutes ago, mikeyk101 said:

If there were 2 very similar trucks for sale and 1 had frame damage and the other was accident free, which one would you buy? As fat as the 1-2000 less, that isnt what a dealership is going to offer. If they know that a vehicle had extensive damage, even if properly and completely repaired, their offer will be considerably less. They may discount the price they try to sell it by 1-2000 but that is not what they will be prepared to pay you for it. And depending on the damage, there is also a strong possibility that they wont even put it out on their lot and will immediately send it off to the dealer auctions which is another reason why their offer will be considerably less.

Yeah, if one is currently damaged and the other is not, everyone would choose the clean one. You are talking like his is still wrecked. He said it has been repaired and drives "better than new" with "no evidence of damage".

 

As long as his truck is repaired 100% back to original dimensions and everything works properly, then what is the difference? If it is not repaired 100% then he should not have accepted the vehicle back from the shop until it is.

 

That's why I said he should go get a trade-in value from his dealer. And check KBB.com for the average value. Then he knows what he's working with. Everyone thinks their ride is worth more than it really is, so getting realistic numbers is key.

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I got bit once by this. Many years ago, I purchased a 2005 Chrysler Pacifica on Ebay, maybe in 07. I had gone over the carfax and it didnt show anything out of the ordinary. I had that car for 5 years. It had small odd problems that did point to it possibly having been repaired but I ignored it. When I went to trade it in, instead of the $8000 or so I was expecting, I was only offered about half. This dealer produced an Autocheck report that showed that before the vehicle had even been registered the first time, it had been involved in an accident at the railyard prior to being shipped to the new car dealer and an accident report by local police had been filled out. I was fuming because I hadnt known anything about it. I did a bunch of research including tracking down the accident report and tracing the history of the car after that. It turns out that the dealer I bought it from in Pennsylvania bought the Pacifica at an auction and was made aware that it had this prior accident but hid that fact when he sold it to me. From then on, whenever I would buy used cars, not only do I check Carfax (which failed me on this), I also check Autocheck.

 

Personally, I wouldnt buy a car that was frame damaged, even if it was completely repaired and I'm sure many others would agree. I would rather have an accident free car and am willing to spend a little extra time to find one.

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10 minutes ago, aseibel said:

Yeah, if one is currently damaged and the other is not, everyone would choose the clean one. You are talking like his is still wrecked. He said it has been repaired and drives "better than new" with "no evidence of damage".

 

As long as his truck is repaired 100% back to original dimensions and everything works properly, then what is the difference? If it is not repaired 100% then he should not have accepted the vehicle back from the shop until it is.

 

That's why I said he should go get a trade-in value from his dealer. And check KBB.com for the average value. Then he knows what he's working with. Everyone thinks their ride is worth more than it really is, so getting realistic numbers is key.

I'm just letting you know how a dealer thinks. Fully repaired or not, it's still the same issue that the vehicle sustained major damage along with frame damage. Dealers are going to pay only a fraction of what it would be worth had it not sustained any damage. And they know that the different reports are out there (carfax, autocheck,etc...) and readily available to the public which will be used when he tries to resell it to haggle down the price. So he has to anticipate the profit that he will be able to make when taking that vehicle in on trade. And like I mentioned, many times, a dealer wont even bother putting that vehicle out on his lot as they want to only sell the best used that they can. It will immediately go from his dealership to the auction house to get what he can from it. Then it will probanly end up on one of the many used car only dealer lots that buy those cars as cheaply as possible.

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14 hours ago, SeanSmith said:

I bought it from a dealership used in 2017 with 11,500 miles on it.  It was a lease repossession.

 

5 hours ago, dieselfan1 said:

What does that matter?

He wants to know how this accident will hurt the resale.

My guess is it will take a major hit because it should be considered a salvage. Good luck getting diminished value from the insurance company although a guy that I know with a salvage title 2015 Vette got around 7 grand back after he was ass ended .

First, thanks for questioning a question, and yes I understand what SeanSmith was asking.

 

If he has a good relationship with the dealership, he can reach out to the used car manager and see what their thoughts/practices are on vehicles that have had this type of damage.

 

Insurance companies have no interest in what happens after they have paid their part, dealership can give you a realistic idea of what it is going to be worth if SeanSmith decides to trade it in.

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And KBB, NADAGuides, and even Edmund's might be a good resource but isnt what the dealers use and will usually show an inflated value from what a dealer would be willing to pay. It may be good for pricing out your vehicle  for a private party sale but not so much on determining trade in value. The dealers use a different resource for pricing the trade ins. They actually use the Black Book which is not publicly available and shows the latest sale prices from the dealer only auctions to decide on a trade in value. It is constantly changing and updated.

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