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Dealership damaged car

pbdistpbdist Member Posts: 1
edited July 2015 in General
Hello,

Here is the story. I drop my car off for 25000 mile service. They worked on the brakes and other parts. I picked up the car that afternoon and they said everything was ok including the mechanic test drove it. I drove it off the dealership lot and heard a clunking. I went to turn around and bring the car back to the dealership when the rear tire fell off. There is damage to the bumper,quarter panel, rim, brake hub and other stuff. The dealership said they will fix it but should I expect more from the dealer? Once it is fixed this will show up on carfax and bring down the value of the car. Has anybody experienced this before.
Thanks
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Comments

  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481
    edited July 2015
    You are referring to what we call "diminished value". As for diminished value claims, you can file one against their insurance even if they fix your car perfectly, since it is no longer original and you will presumably, when you sell or trade the car, have to divulge this accident. Exactly what a DV claim will bring you depends on the total amount, and type, of damage incurred. If it's a few thousand dollars, it may fall into the "fender bender" category, rather than 'severe collision", and the DV might amount to only 5 -10% of the car's current value. You didn't state the make model and year or condition so I can't say much about what that number is.

    You have to balance all this with the hassle of doing it. First you'll have to hire an appraiser who is a diminished value specialist---you MUST get an experienced person. If the DV appraisal is incomplete and naive, the insurance company will deny you flat out. It's bad enough they *hate* DV claims in the first place. You cannot, in most states, make a claim against your own insurance company. So the claim is called "third party" because you never made a contract with the dealer's insurance company--so you are free to DV away. You have to pay for this appraisal out of pocket however. Once you have it, you can send a "demand letter" to the dealer's insurance company. NEVER EVER negotiate with them orally. Insist that they put any settlement offer in writing to you.

    If the repairs aren't done well, then you can ask for more DV perhaps. So there's "inherent DV", meaning regardless of how well the car was fixed, and DV related to the quality of the repairs.

    If your DV appraiser is really sharp, he'll also make a claim for "loss of use" while your car is being repaired.

    Hope this helps.
  • steverstever Guest Posts: 52,454
    It's also possible that the dealer may repair your car and not report it to Carfax or AutoCheck. I don't think reporting is mandatory and if the repair is "off the books", well who knows. In that case, if the repair work is good, the repair will only be noticeable from an inspection by someone who knows what to look for. Unless the accident is disclosed by the seller.
  • pbdistpbdist Member Posts: 1
    The car is a 2013 explorer with 25000 miles. I bought it new. They are repairing the car but do I need to get the DV appraisal before I take the car back from them.
    Thanks
  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481
    No, you get the DV appraisal after repairs are completed, although it would be helpful to the appraiser if you had damage photos to show him/her. Don't use "online" DV reports. They don't work. Have a real set of eyeballs on the car.

    Steve's right---the dealer might not report anything. Do you know the amount of damage?
  • pbdistpbdist Member Posts: 1
    They are replacing the bumper and fixing the quarter panel. Repainting what is needed. Then they are going to check for damage when the car dropped when the wheel fell off. The axial,shocks,brake hub etc. The police made an accident report so I guess it will show up on the carfax
  • steverstever Guest Posts: 52,454
    edited July 2015
    Yeah, that'll probably trigger a Carfax/AutoCheck report. Guess the dealer decided to make a claim on their insurance.

    (btw, some of your posts kept getting grabbed by our automated spam filter, but I think we've fixed it).
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