Diminished value after an accident?

[garycordell]

Hi everyone-- My '05 Cashmere Bird is in the shop for some extensive front end repair (not my fault but when the First Dent is a big one you still cry over it). What I want to know is how to assess the resale value of the car now that it is no longer pristene? We bought it figuring it would keep its value as a collector's edition, and having the front end rebuilt would seem to take it out of the collectible's market.

Thanks, Gary

[Gobird]

Re: Diminished value after an accident?

Gary, As of now it's just a used car, repaired or not. It will be many,many years before it will ever be worth much as a collectible. Now if your talking 30 years from now then it's value may increase but not for quite a while.
As for being wrecked. I would say if everything that is replaced is with original Ford parts then it shouldn't make a difference. And if the work is done right. Good Luck on the repair.

[My Raven]

Re: Diminished value after an accident?

Gary, What exactly is being repaired and the parts replaced?

[MATBird]

Re: Diminished value after an accident?

Gary:
I believe that GoBird is correct, it may be many years before these cars appreciate.
Having said that, there are many old classic and antique cars out there that have been restored and look pristene. These draw a lot of value, and you have to know that over the years not every one of them made it through life without ever having been in an accident.
So relax and enjoy every minute with your TBird!

[bronzebird]

Re: Diminished value after an accident?

Gary:

Don't know how it works in California but in Georgia a vehicle that has been in an accident requires the insurer to issue a diminished value report that sets out the percent of damage to the vehicle under five classifications ranging from minor to unrepairable. Based on that, the insurance company pays the insured the loss based on that percent times the current value. (in addition to repair costs, if any).

That is a public report that will follow the car and it will always have diminished value.

I did not buy my '05 as a collectible. I bought it to enjoy now. By the time its' value moves into a higher range I will be long gone.

Bronzebird

[Leroy]

Re: Diminished value after an accident?

Gary, Don't be surprised if the Insurance Company totals it if the front end damage is really extensive, both fenders, hood,ect. See Sandmans thread on page five ( Need a complete front clip ) . His was a 2002 and they couldn't find the parts used, and I don't know if they couldn't get new parts or if they were too expensive, anyway they totaled it and they got a check for $23,900. Not bad for a 2002. You could get a 2005 for that now, and probably still have a little cash in your pocket. Leroy

[JAB02LHS]

Re: Diminished value after an accident?

Gary, What exactly is being repaired and the parts replaced?

GREAT LOOKING AVATAR, JOE

[Daktari]

Re: Diminished value after an accident?

Hi there,

Gary, as Rick mentioned in an earlier post, I would check in to the 'Diminished Value' clause as it stands in your state of California. Like Rick, I am in Georgia and after the work was done I received a check through the mail for nearly seven hundred dollars. I did have to ask about it though, I guess a lot of money is saved by insurance companies who rely on folks not knowing about it.

The way it was explained to me is if two identical cars were for sale for the same price and then a search was done on the cars history. One of them was found to have been in a minor wreck and had a real good repair job done. This would obviously put the potential buyer off and so the asking price would have to be lowered to try and keep the buyer interested. This, I understand, is the amount paid out to compensate for the car's now tarnished history.

It worked for me so it's certainly worth looking in to.

Good Luck, Gordon.

[UncleTurbo]

Re: Diminished value after an accident?

After your car is repaired drive it for a while and then see how you feel. If you find evidence that the car is no longer "pristine" sell it and look for another T'bird. I bought my '04 with 24K miles in Nov. of '05. The price was $24K which was lower than most, and it was for sale by a Ford dealer. Upon PA inspection the mechanic showed me some evidence of "overspray" in the wheel well of the passenger side front wheel. The car had been repaired. They did a good job and we could not determine whether it was a minor or more extensive repair. 25K miles later I've had no issues related to the repairs done. The dealer offered the car at a fair, and reduced, price and I am fine how things have worked out. I plan on keeping the car for a long time and I'm not concerned with its collectible value. It is nice to see the T'birds seem to hold their value pretty well and depreciate less per year than many other cars.

[007Cruiser]

Re: Diminished value after an accident?

Unfortunately, we do not receive anything here in NJ for the decreased value. Insurance only covers the cost of repair. You replacement fenders will not have the factory Ford stickers with you VIN on them. My daughter had a 2000 Mustang that was hit in the front due to no fault of her own. The car was repaired perfectly by the best body shop in the area. When it was time to trade the dealer saw that the stickers were missing and offered way below its value for a trade. She ended up selling it privately for much more. So, yes, your value has gone down. Will you be compensated? Depends on where you live apparently.

[joe166]

Re: Diminished value after an accident?

It depends on where you live, but it is not free money! If the insurance company has to pay you for this decreased value you can bet they charge you more money. And knowing insurance companies it is a whole lot more than they pay out.

[garycordell]

Re: Diminished value after an accident?

I appreciate all the replies from everyone. I found from a bit of Googling that Georgia may be the only state that has diminished value laws, and that in California the only way to recover it is to sue the responsible party and prove you actually lost money. Apparently the only sure way to do this is to sell the car and also document the sale price of a number of identical cars in your area. Probably not worth the hassle.
BTW: I heard a long time ago that there is a good reason the insurance companies all owned tall buildings with marble floors.... G

[prbre]

Re: Diminished value after an accident?

If the repair job is done right and you still enjoy the car keep it. But as a consumer who is looking for a Thunderbird.(I'm not) but if I was, If I knew your car had extensive front end repair, I would run. Like Robert up above mine too had some paint work done. If I knew this at the time of buying it, carfax did not show anything. But, I still love my car. I just wouldn't have bought it at the price I did. But on the bright side at lease your front bumper will match you front clip now..

[My Raven]

Re: Diminished value after an accident?

I guess I am the odd man out ... I never have felt the same about a car that I know has had extensive paint work or collision damage before or after I bought it.

I had no intention of keeping the Mustang if the insurance company had not totalled it and the one T-Bird I bought and found out later had paint and bodywork didn't last long in the stable.