Payout formula is as follows:
Car is deemed total loss if repairs exceed the following:
Fair Market Value + taxes/title of replacement vehicle + salvage * 70%
Once it exceeds that car is total loss. That formula is:
FMV + taxes/title + salvage value.
FMV = 32,000
Taxes/title = 5,000
Salvage = 5,000
Payout = 42,000
Total loss if repairs exceed $29,000
Nada is used to calculate FMV using VIN for options.
New car replacement is different but the formulas above are fairly consistent in the industry.
Last edited by x3brian; 11-03-2012 at 08:49 AM.