So Nov 30th I was rear ended. Long story short, replaced bed and all electrical, rear frame section and misc stuff. Total repair cost was $14,400 at a certified repair shop. I asked on the frame which they told me it was a 2FT section that ford has designed to take impact and be replaced. Well they replaced it from the cab back! So once truck is put back together and drove around for 2 months to ensure all the bugs were fixed, I take it to have it appraised for a Diminished Value claim. Truck est value at time of accident, $32,650. Truck value after repairs, $30,022 Fair Market Value. Diminished value $5,628, that the third party insurance owes me. I've never been in an accident so this is new to me. Does this sound right? I took it to the dealer to have them appraise it for trade in value and the quoted me $21,000.

Should I trade it and try to get rid of the negative equity? Any thoughts or help would be appreciated.

09 F-150 Lariat, black, 6" lift, 35" tires, 20"rims, clean interior, clean body now, 40,089 miles at time of accident, 44,450 miles now.

 

I thought once you took the check from the insurance, it was a done deal and you had no recourse at that point.

Personally, if i had a truck that needed a new half of a frame, it would be sold as quickly as i could.

 

^ What he said.....

 

Frame sections are replaced all the time. As long as its done right it makes no difference. I'm confused as to what your after. I've never heard if getting paid back the diminished value after an accident, my dad has been in the bodywork business all his life and my wife sells insurance. If lines up right and aligns fine id say its done.

 

I'm confused, too. What are the options and what are you trying to do?

 

What he's talking about is that if his truck was not in an accident, it would be worth x dollars. Because it was in an accident - no matter how well it was fixed - it's worth less than x. And trust me, when somebody sees $14 grand worth of repairs, they'll walk right away from buying it. So even if insurance pays to fix the truck, they haven't paid for the total loss to the owner - which is the repairs plus the diminished value.

Most people have never heard of this and insurance companies would love it if you didn't. Trust me, if my vehicles are ever in a crash, somebody's getting the bill for diminished value and it's not me. That's partly what I have insurance for.

 

What you're asking all depends on the laws of your state you reside in.....meaning those laws differ from state to state...

Usually the insurance company is only responsible for the repairs to fix the vehicle....not the damage disclosure portion that is affixed to the vehicle title after the fact.....

It would be wise of you to contact your insurance company or get legal advice on what your options are....

 

In all honesty, I think it would have been about the same cost to replace the whole frame. That is what was done on my truck. Cost of frame was $3300 plus moving everything over to it. Repairs on mine were $13,300, including frame, one front fender, bumper, grill, radiator support, inner fender, repair hood, and other misc. parts. As far as diminished value, can't help there as I haven't looked at values. I would think it would be about the same as before the accident as the frame was replaced by OE, not repaired.

 

Pretty much the same thing on mine.

What I' found out is this:

Truck to a private buyer could be $27,000 to $30,000 (reason for appraisel and diminished value claim)

Truck to a dealer is $21,000 tops (and use the $5,628 check to help off set cost)

I owe $29,000 on the truck. So if I trade it in then im in the hole $8-10,000 roughly. One way to get rid of the negative equity would be to upgrade to some crazy tricked out truck that tops the $55-65,000 price range to help eliminate the debt, so the dealer says.

I just was asking for advice on wether I keep it or trade it in and whats some good deals out there. The truck came out cherry and runs good, but I feel I'm in the hole big time on this.

Thanks

 

Exactly!!, I thought I would get more for the damage than $5,628, more closer to $10,000 to use on a trade in, but I was wrong.

My insurance paid for it all and collected from the other insurance because it was not my fault, so no deductible on my part.

 

One of the big differences - even in the best equipped and best intentioned collision shops - is process control. There's simply no way they can duplicate the the very tightly controlled processes used to weld, pre-treat, paint, assemble and test your vehicle at the factory.

I made that very case with the General Manager of a local Ford dealer when Ford finally agreed that the paint on my 1995 F-150 was indeed faulty. (Not fully hardened.) When the dealer offered to paint the whole truck free of charge, I asked the Body Shop Manager several questions:

1) Will you be able to guarantee that your paint job meets all factory specifications for coverage, thickness, gloss, hardness, corrosion protection, etc.?

2) Will you guarantee that nobody will ever be able to tell or figure out that the vehicle has been repainted?

3) Will you be able to guarantee that I will get the exact same amount for trade in as I would if the vehicle had not been painted?

The Body Shop Manager then looked at the General Manager and said, "I can't guarantee any of that. Get him a new truck." They did.

 

Ha my repairs were done by their body shop to! I'm gonna work these dudes till they give me what I want! I've bought 2 vehicles from them and referred 5 other people to them, all buying lariat and king ranch. So they better up the trade in value.

 

The dealer is full of it! There is no way to get rid of negative equity other than 1) Pay some of it off with cash 2) Sell it for more than you owe

Buying a higher priced vehicle will only give you more negative equity. Each vehicle loses x% of it's purchase price when you drive it off the lot. x% of $55k is a LOT more than x% of $25k, so your negative equity just skyrocketed by buying that more expensive truck. He's just trying to make some money off of you.


Honestly, the best way (financially) to handle it is to keep the truck forever. If the loss in value is $5k now, in 5 years it will be $2k (or some number similar) because the truck will be worth less.

Bottom line, if you want to do what is best, keep the truck. If it is in good shape and runs like it should, you're good to go. If not, make them make it right. And put that $5k+ in the bank for repairs down the road.

 

The worst thing you can do is trade in a vehicle in which you are upside down. If you can't afford to pay it down you can't afford a new one.

 

I wonder what percent of people are upside down when they trade in vehicles??? Financing negative equity is about the worst thing you can do. I know I said get rid of it in an earlier post, but if you are going to lose serious cash, then keep it for the long haul or restructure to pay it down sooner.