BMW dealer wrecks M5 and won't pay for damage

Copied this from Lexus GS forum - Dealer is apparently in DFW area:




BMW dealer wrecks M5 and won't pay for damage

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We complain about our dealerships, but check this out. Everything I've read about bad dealers on this forum pales in comparison with this story.
http://www.m5board.com/vbulletin/e60...est-drive.html


Quote:
An M5Board forum member took his 2007 BMW M5 to the dealer for brakes and fresh oil. Their 20-year-old tech crashed it during a test drive. The dealership's offering him $2500 in parts. The problem? There's $30,000 in damage.

It's a topic of heated discussion over at M5Board, racking up over 108,000 page views so far and causing a bluster within the M5 community about the whole issue of service and owners rights. There are over 38 pages of commentary but we'll do you the favor of breaking it down to the key details.

The victim here goes by the handle "tjav8b" and this is how the whole thing started out:

Dealership rags my car and wrecks it on a test drive!
Took my car into dealership this morning for a oil/brake change. I get a call a few hours later (not even from the manager of the dealership) that my car had an "accident" while being test driven. They stated the driver hit a patch of sand and slid into the curb at 20mph. Damage...Wheel cracked, tire blown, front end will need repaint and the strut is cracked open. Immediately called B.S. on the story and it was obvious temp manager knew what really happened when I got there but would not admit it. I asked where it happened and he said a few streets behind the dealership. So, I go check out the area and it didn't take long to find it. Around a turn was 30ft of tire marks (no sand) and not only one but two separate curb impacts and coming to rest in a puddle of strut fluid. Total distance from first curb impact to strut puddle was about 120ft! So, it is obvious what happened, the mechanic was out ragging my car and lost control. Manager on duty actually had the balls to mention the lack of treadwear left on my rear tires as being a possible cause! We are talking a 100 degree day and dry as hell! He had nothing to say as to why the mechanic test drove in M mode (full dynamic off)! No M mode, no accident.
I have already told them to not touch anything and do not order anything until I contact them. I have already documented the crash site with video/pictures. Police told me they could not take a report because BMW had moved the car before I got there.
Anyone been in this type of situation before? Suggestions on how I should proceed?
Of course this incites the fires of hell in the commentary, and many suggestions to carefully document the incident, tell the dealer to do nothing until he gets some legal advice and then go from there.

This all took place this weekend. No doubt about it, the mechanic was driving reckless. I measured 110 feet from the point of intial impact to where the car finally stopped. This does not include the brake marks before impact. I forgot to mention this all happened on a 30 mph street.
After confronting the service manager with the evidence they dropped all pretense the damage came about as a result of bad road conditions. The previous claim of sand on the road causing a skid doesn't end with 110 feet of skid marks. The next update is a whopper:

Well...this is how the day went. They are not going to do anything other than have the car fixed. Of course they offered to fix it themselves and give me a loaner. They estimated a parts only cost without painting to be $2500. I talked to the GM (General Manager -Ed.) about depreciation, extended warranty, buying my car, selling me another car, you name it. He said if anything was damaged in the engine/drivetrain they would know it and they didn't find anything. They are not going to budge off of anything they feel like they are not required to. This is all after finally admitting they were grossly negligent and the 20 year old kid trashed my car like a rental! As soon as the owner said absolutlely no to any other option I told them not to do anything to my car, box it up and send to another dealership that another board member helped me out with (thanks again buddy). The GM then said they were going to immediately turn this over to their insurance. Get this, their deductible just happens to be $2500. They acted like this happens all the time and they already have a lot of lawsuits on them.
Contacting my lawyer in the morning for next course of action. I am willing to bet the next dealership is going to find a lot more wrong with this car.


And the next dealership did just that. After removing some body panels for inspection, they found a broken strut, borked inner brace, bent steering gear assembly, damaged rear suspension many instances of body damage, in total about $14,000 in parts and another $16,000 in labor. Currently the boned M5's owner is seeking further legal advice and negotiating with the dealer. One of the most clever parts of this story is how the actual dealer's name has never been mentioned, and that's by design. We're sure a dealership would be willing to work towards an amicable solution rather than have their name anywhere near this debacle. Our guess? It's either Autobahn Motorcars, Moritz BMW or BMW of Dallas given the M5Board member's from Fort Worth, Texas and those are the only three BMW dealers in less than 30 miles.

We'll stay tuned to find out how this all ends.

link fail

and this is e90 related because...

Because a few people on this post living in the DFW area may want to read about one of their probable dealers. Would you not be curious if it was a Phoenix area dealer - maybe yours?

I just ordered a 328xi from this dealer. I sure hope they will treat my wheels nicer!

Originally Posted by GTakacs

I just ordered a 328xi from this dealer. I sure hope they will treat my wheels nicer!

What dealer?

The dealer that wrecked the M5 and is being difficult about it.

Originally Posted by GTakacs

The dealer that wrecked the M5 and is being difficult about it.

In Tarrant county?


From the pictures I've seen it looks like the car is either currently at or was at BMW of Dallas. Those pics are definitely not taken at Autobahn. But the unknown is were they taken before the car was moved or after.

I'm biased but I would be exceedingly surprised if this happened at Autobahn. I know the GM personally and I know a lot about the owner and this is not the way they would operate. At least I hope not.


Something about this story does not pass the "smell test".

Originally Posted by tturedraider

In Tarrant county?


From the pictures I've seen it looks like the car is either currently at or was at BMW of Dallas. Those pics are definitely not taken at Autobahn. But the unknown is were they taken before the car was moved or after.

I'm biased but I would be exceedingly surprised if this happened at Autobahn. I know the GM personally and I know a lot about the owner and this is not the way they would operate. At least I hope not.


Something about this story does not pass the "smell test".

You should ask the GM about it.

Originally Posted by andyffer

link fail

Try this one

http://www.m5board.com/vbulletin/e60...est-drive.html

bad things happen in life.

if they offered to repair the car, to put it in the exact condition as it was when he brought it in, then his only other possible damages are diminution in value, if his state allows it.

Caveat, I'm a defense attorney, so lets assume there is liability, and the only thing we are concerned with at this point is the amount of damages.

What else does he think he's entitled to, punitive damages, consequential damages for emotional distress, mental pain, anguish and suffering?

I know it totally sucks, and that's life....just like getting in an accident....you can be sitting at stop light, minding your own business, and get rear ended. Your get your car fixed, its not going to be perfect....but that's it, should your insurer or or the other driver have to give you a new car, just because you don't want a repainted trunk lid?

Originally Posted by pilotman

bad things happen in life.

if they offered to repair the car, to put it in the exact condition as it was when he brought it in, then his only other possible damages are diminution in value, if his state allows it.

Caveat, I'm a defense attorney, so lets assume there is liability, and the only thing we are concerned with at this point is the amount of damages.

What else does he think he's entitled to, punitive damages, consequential damages for emotional distress, mental pain, anguish and suffering?

I know it totally sucks, and that's life....just like getting in an accident....you can be sitting at stop light, minding your own business, and get rear ended. Your get your car fixed, its not going to be perfect....but that's it, should your insurer or or the other driver have to give you a new car, just because you don't want a repainted trunk lid?

Did you read the original post?

They were offering to fix it up to the tune of $2500. The car actually has $14k worth of damage (in parts alone).
Translation: they were offering to do a cosmetic fix + glue and duct tape on the mechanical bits sufficient to get rid of this poor sap.

Originally Posted by tturedraider

In Tarrant county?


From the pictures I've seen it looks like the car is either currently at or was at BMW of Dallas. Those pics are definitely not taken at Autobahn.....I'm biased but I would be exceedingly surprised if this happened at Autobahn. I know the GM personally and I know a lot about the owner and this is not the way they would operate. At least I hope not".

I agree with you. I have received excellent service from Autobahn and would be surprised if it was that dealership. However, one poster in the other thread says it was Autobahn of Ft. Worth:

"Name has been released, it was Autobahn in Ft Worth"


I would like to see some confirmation of that and would be very disappointed if true.....

Originally Posted by tturedraider

From the pictures I've seen it looks like the car is either currently at or was at BMW of Dallas. Those pics are definitely not taken at Autobahn. But the unknown is were they taken before the car was moved or after.

Taken after the car was moved. On something like page 12 of the thread, the OP notes that the car was moved to another dealer, who started taking panels off to do a more thorough inspection.


FWIW,
George

Dealership is insured. The OP should demand some mad depreciation costs, or get something new all together.

Originally Posted by furby076

Dealership is insured. The OP should demand some mad depreciation costs, or get something new all together.

OP should talk with his insurance co. - they'll handle the dealer - they have motivation.

I hope when I get my M5, I am treated better than this.

Originally Posted by pilotman

bad things happen in life.

if they offered to repair the car, to put it in the exact condition as it was when he brought it in, then his only other possible damages are diminution in value, if his state allows it.

Caveat, I'm a defense attorney, so lets assume there is liability, and the only thing we are concerned with at this point is the amount of damages.

What else does he think he's entitled to, punitive damages, consequential damages for emotional distress, mental pain, anguish and suffering?

I know it totally sucks, and that's life....just like getting in an accident....you can be sitting at stop light, minding your own business, and get rear ended. Your get your car fixed, its not going to be perfect....but that's it, should your insurer or or the other driver have to give you a new car, just because you don't want a repainted trunk lid?

I have to agree. The dealer has to make the owner whole again if they are liable for the damages (which I think they are). Making him whole means repairing his car to pre-accident condition and compensate for a loaner vehicle during the wait period. I have not seen an insurance company that would pay for diminished value due to an accident and I've dealt with a couple of them due to idiotic drivers deciding to hit my cars.

Originally Posted by rgzimmer

You should ask the GM about it.

I probably will next week.

Originally Posted by galahad05

Did you read the original post?

They were offering to fix it up to the tune of $2500. The car actually has $14k worth of damage (in parts alone).
Translation: they were offering to do a cosmetic fix + glue and duct tape on the mechanical bits sufficient to get rid of this poor sap.

This is the issue. I think the OP is "embellishing" the story; not telling all the facts exactly as they really are.

Originally Posted by GTakacs

I have to agree. The dealer has to make the owner whole again if they are liable for the damages (which I think they are). Making him whole means repairing his car to pre-accident condition and compensate for a loaner vehicle during the wait period. I have not seen an insurance company that would pay for diminished value due to an accident and I've dealt with a couple of them due to idiotic drivers deciding to hit my cars.

For those who may care, diminution in value is recognized by courts in FL as long as the insurance policy does not expressly preclude it. Coincidentally, I'm in the middle of negotiating a "proper" settlement for a friend of mine whose rebadged Toyota (SC 430) was hit by a woman who was painting her nails while driving . The insurance company offered diminution but of course, low-balled him despite clear documentation otherwise from the rebadged Toyota dealer.

Originally Posted by pilotman

bad things happen in life.

if they offered to repair the car, to put it in the exact condition as it was when he brought it in, then his only other possible damages are diminution in value, if his state allows it.

Caveat, I'm a defense attorney, so lets assume there is liability, and the only thing we are concerned with at this point is the amount of damages.

What else does he think he's entitled to, punitive damages, consequential damages for emotional distress, mental pain, anguish and suffering?

I know it totally sucks, and that's life....just like getting in an accident....you can be sitting at stop light, minding your own business, and get rear ended. Your get your car fixed, its not going to be perfect....but that's it, should your insurer or or the other driver have to give you a new car, just because you don't want a repainted trunk lid?

Back in 1970 I owned a 911 and was rear-ended. I recall seeing an article citing a court case in which a Porsche owner was granted more than the cost of repairs because the Porsche was determined by the judge to be a "special" vehicle - not just run-of-the mill Ford. Surely an M5 would also fall into that category. I'll bet there is some additional case law supporting that finding.

Now the problem is that this happened in Texas - California where I lived. Texas is a Republican, pro-business, state. It wouldn't surprise me if it has weak consumer protection laws. One reason (among many) why I would never live there.

Originally Posted by furby076

Dealership is insured. The OP should demand some mad depreciation costs, or get something new all together.

Exactly! I would argue for a new M5 and the dealer's cost and have him give me trade in credit for my car at the high Kelly Blue Book value.

Seems to me the OP also holds the card of exposing who the dealer is to the BMW community. Does the dealer really want that kind of publicity? Does BMW want it? This could cost the dealer a lot more that the cost of a new M5 in lost sales.

Originally Posted by gizmo jean

For those who may care, diminution in value is recognized by courts in FL as long as the insurance policy does not expressly preclude it. Coincidentally, I'm in the middle of negotiating a "proper" settlement for a friend of mine whose rebadged Toyota (SC 430) was hit by a woman who was painting her nails while driving . The insurance company offered diminution but of course, low-balled him despite clear documentation otherwise from the rebadged Toyota dealer.

Good luck getting a claim paid. Reality is that the insurance industry is very familiar with it, and many top insurance companies have made changes to their policy forms in the past several years to specifically exclude diminished value.

Originally Posted by SARAFIL

Good luck getting a claim paid. Reality is that the insurance industry is very familiar with it, and many top insurance companies have made changes to their policy forms in the past several years to specifically exclude diminished value.

If you sue your insurance company sure, they could have an exclusion, but if you are sueing someone elses insurance company their exclusionary clauses matter not to you. If the dealerships insurance company won't pay then the dealership has to pay. Considering they have the assets then all the plaintiff has to do is convince a judge to allow it - which shouldn't be hard. An ///M5 with a serious accident is valued a whole lot less then an ///M5 without an accident

Originally Posted by SARAFIL

Good luck getting a claim paid. Reality is that the insurance industry is very familiar with it, and many top insurance companies have made changes to their policy forms in the past several years to specifically exclude diminished value.

Insurance company committed to paying...even made a counteroffer. The only thing left to negotiate is the final number my friend will accept. They're only about $3k apart right now.

Originally Posted by hpowders

I hope when I get my M5, I am treated better than this.

Good luck with that. According to some here that even the 3 series gets treated like a rare one-off Ferrari at dealerships and porters and techs take every opportunity to beat on them...What chance does an M5 stand?

For those of you wishing to have a fun read...Search for "Savage BMW" here. I was somewhat involved in that saga and all I can tell you is, you're only seeing one side of the story.

Having witness this first hand, the M5 owner should have immediately contacted HIS insurance company and have them deal with the dealership's insurance rather than try to haggle with the dealership. That or call his lawyer "friend" immediately and have him show up at the dealership with him.