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Discussion Starter · #1 ·
Hello everyone I recently purchased a BMW 328is on 9/17/2011 and I loved the car! Unfortunately I just had a front end collision and the car has been deemed totalled. Now the insurance company is making me a settlement offer which is low in my opinion. I payed $7,400 for the car less than 3-months ago and they are trying to settle for $5,600. I was wondering if anyone new of resource to give me some leverage during the negotation process. Kelley Blue Book Suggested is $7,214

My Car was

1997 BMW 328is Automatic
Black
84,000 miles
Condition - Excellent to Great as rated by body shop
No Previous Damage or Accidents
Packages
Everything Standard
-Sliding Sunroof
-Metallic Paint
-Power Everything
-Heated seats
-Side Airbags
-CD player
-Fog Lamps
-Leather Seats
-Tilt Wheel
-Climate control

They compared my car w/ two other dealership w/ similar cars that that recently sold. I have looked into the dealership and they used and both are unscrupulous or poor comparisons. One is a wholesale liquidation company and the other has several open investigations w/ attorney general for fraud and they typically buy totalled cars and repair them for resale.

Any help would be greatly appreciated. I already started looking for other cars for sale matching mine and the asking prices are around $7,900 from dealerships
 

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Smiling from gear to gear
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Not to be harsh, but it doesn't really matter how much you payed for the car. They are only going to give you the calculated value.

If I were you, I would take whatever they gave me, buy back the car for cheap, and then fix or part it out depending on the condition. Although, you may not have the time or ability to do so.

Either way, sorry to hear about your accident and good luck.
 

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If you hadn't noticed or expected it, you are in a negotiation and they've made an offer. Now you make a counter offer with your back up of KBB value and the other cars you've priced.
If you're uncomfortable negotiating this, contact an attorney, but be aware the attorney cost will eat up some of your settlement. I'd meet with one to discuss this as that likely won't cost you anything, and you might get a letter written from the attorney to the insurance company for $200-$250 that might get the offer bumped up $1K or so.
Unfortunately you don't really have any way to create leverage here because the difference between their offer and book is only $1600.
Wish there was better news here........
 

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probably not going to get what you paid, as cars diminish in value. you may be able to negotiate some, but as stated, the $1600.00 difference isn't a whole lot.

again, this is general practice, as i do not know what your policy states, or what sort of coverage you have. some policies have a 'replacement value' clause, and charge a premium for this, iirc.

do you still owe on the car?? did you have gap insurance if you do??

it sounds as if you are unharmed, which is good news. hope it works out for you.



df
 

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Discussion Starter · #5 ·
I understand that cars diminish in value but used cars dont dimish value over short periods of time. I purchased this car 3 months and well I dont expect to get what I paid Im looking to cover what I still owe which is $6,800. There estimation methods using the CCC database present a poor representation of the market. I have currently compiled a list of 8 cars matching mine w/ similar mileage (within 35,000 Miles) of both dealer cars and private party On the web.

Average dealer asking price is around $7,900 and it can be assumed they will sell for 5-10% lower than asking or around $7000-$7400

Average private party asking is around $6500 and they all have near double the miles as my car.

My current plan is to represent these cars to the insurance company and get them to restimate my car. I like the suggestion about parting out and I am planning on buying the car from the insurance company and getting a salvage title for the car to part out. it was a front end collison but it is driveable and has a good engine/transmission. I am calling them back today to see what I can negotiate for.

I will keep this thread updated with settlement values and what I end up getting for the car along with the success from parting it out.
 

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This situation has always concerned me, and I hope my car is never a write off. I really don't have any good advice for you. The fact is, you don't really have any leverage. Bring as much to the table to prove the higher value as you can I guess.
 

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I was in your shoes years ago, and was told that I could look around myself and present them with cars I
Felt were in like condition. I did just that after declining the first offer, and ended up meeting with them at a field office to present my case.
Ended up getting exactly what I wanted plus a little more since they gave me the sales tax on the average transaction price too.
Present all receipts as well that you may have.
Good luck
 

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The Canadian Prick.
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Bring them any receipts of any work you've had done sine buying the car as mentioned. It is not unreasonable to expect an inurance company to pay out what you've recently put into a car. ie: last February I was involved in a small accident, and my insurance company sent out 3 evaluators. (2 of whom were morons) but the initial price I was quoted was ~$11,000. Get an appraiser of your own if it comes to that.


Edit:

Also mentioning that if they choose to short you here, your loyalty factor for their company drops significantly.
 

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Thats promising news for me jonesin.... seeing as we live in the same city.
 

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The Canadian Prick.
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Insurance: CAA
Company that I will NEVER take my car to again: Concordia Carstar on Cyrville.
 

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I Am The Machine
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Sorry but you badly overpaid for that car. Anyway, to the issue at hand, insurance doesn't care about blue book, black book, NADA, or anything else. They look at sales prices of recently sold cars and use 3 to establish a basis comparison. If you present them a different set of data from the same area that the adjuster can use as a valid baseline, they'll likely go with it because they can tell you'll be a pain holding out for what you want and really just want the file off their desk. Get all your maintenance receipts as well because you'll get reimbursed for those too. Good luck, and do your research on your next purchase so you don't get taken again.

Sent from my LG Revolution 4G from BimmerApp
 

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BMWCCA HPDE Instructor
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Yeah, you definitely overpaid by a lot. Their offer isn't a lowball at all - it's actually pretty fair. And not that it matters, but '97s don't have side airbags.

Your numbers are way off, too, since you are not a dealer. I priced out your car on KBB (as a private party), and I got $5694 in excellent condition (which it probably isn't in), and $5419 in very good condition (which it probably is).
 

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If you did overpay for the car (which varies largely by region) then the insurance will likely not cover up to what you paid. Its not really their fault you paid too much.... otherwise everyone would be buying beatup dodge neons, forging sales receipts and playing bumper cars =]

Craig
 
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