My situtation: I have a 2002 LS430 Starfire Pearl, tan interior, ML and Navigation with only 57,000 miles. I bought it in 2003 with 23,000 miles. I am a nutcase about maintenance and upkeep and have every record since new. Every service has been performed by the Lexus dealer. The car is pristine inside and out-absolutley everything works. I drive 3 1/2 miles a day from my garage to the office garage. The car never sits outside in the sun for any extended period of time. I even had the timing belt replaced at 53,500 miles last December. I can't imagine a nicer 2002 LS 430 out there.

My problem: A month ago someone ran into me and I had to have the passenger side fender, front bumper and hood replaced (OEM parts) about $8,100 of repairs. Beautiful repair job-no issues, no complaints. My insurance company USAA paid for everything. In the state of Georgia we have a diminished value law. The insurance company pays me the difference between what the car was worth before the accident and what it is worth after the accident. They tell me they think the car was worth around $22,000 and now has "diminished in value" by $484.

I really think that the car to a wholesale buyer prior to the accident would have been worth around $14,000-$15,000. After the repair I took it to CarMaxx and they offered me $11,000 and said they based that price on what they could get for it at auction.

So my question to you, the experts-what do you think my car is now worth in a resale? I think it would have been worth $14,000-$15,000 wholesale before accident and feel that based on the Carmaxx quote, the diminshed value should be $3,000-$4,000, not $484. Again I have pictures of the damage, every record and absolutley evertything works. The car is beautiful. If sold to someone on this board (private party sale), what is your opinion of worth. Does that type of damage scare buyers off? Thanks in advance for your comments.

 

Yep accidents absolutely hurts resale value. Most buyers are afraid of an accident damage car.

You should be able to get a written offer from a place like car max or the Lexus dealer and ask them to write down how much the car is worth with the damage. And ask them how much more it would be worth with no accident and write down what amount they say and document the date, names, place, etc for the judge. Also get on Edmund.com and do a self appraisal on the car to get its worth (the tool assumes no accident).

My guess is you will have to file suit in small claims court to get insurance company to settle for more than the offer they made. Once you formally file they will likely respond with a better offer to avoid court costs. Just have your doco ready and present it to the judge. I'd say you lost $1000-2000 because of the accident in diminished value...so maybe sue for $1500-2000.

 

i have usaa also and them as in all insurance companys the nunbers are always backwards.
if you totaled it they would say your car is worth $11k maybe.you cant beat them in this game.
you will have to find the right buyer and it may take some time or you could drive the dog crap out of it.best of luck.
as far as value i would put $15k or best offer.

 

Carmax is offering you a trade in value...whether it be high or low, you will always get more private party or selling it on your own.

I have bought and sold cars for years. 99% of all my buyers have never asked me for a VIN, asked to run a carfax, etc. I don't think it will affect your resale value unless you bring it up or they ask.

Since it was fixed professionally, I would only bring it up if it is asked by the buyer. If it was a hack job, it would be easy to see. Since it probably isn't, no big deal.

 

It would impact my buying decision. I had a master mechanic who I knew look over my LS before I bought it, and he even drove it a bit before saying everything seemed to be in perfect order. He looked at a different vehicle for me before that, and advised me not to buy it due to the crash he could detect that it had once sustained; it was fixed fine but he said most vehicles are never quite the same afterward.

Sad to hear about your accident! We maintain our car exactly as you do, and know that the day may come when we're in the same boat as you. Interesting to hear how USAA has handled the situation too--we also have insurance with them....

 

So if the car gets totaled, they should give you 21K? insurance agencies are such douche bags i tell ya.

 

Well, after 3 weeks USAA decided that they would up the diminished value to $731.23! It was a losing battle to try to get more. However, I have been with them for 40 years, with a few claims, and still feel that they are the best in the business. The repairs were great, the car looks fantastic. With only 57,000 miles and driving 3,500 miles a year or so, I guess I'll keep it.

 

insurance CEO's are prolly politicians!!

 

There's no question an accident like that will diminish the resale value more than what you received in compensation, but there's probably not much you can do about it.

I remember a relative of mine was hit in their nearly new S Class Mercedes. The dealership repaired it perfectly (wasn't a salvage title) but when it came time to sell, the accident cost the resale value SUBSTANTIALLY. To the point where they considered not selling it and just driving it into the ground. In hindsight, they should have sued the person's insurance company for the difference, we're talking over $10k in lost resale value was what the dealerships were telling them in terms of what the offer would be without the accident report.

CarFax type services have really changed things, and you could argue it's not always good. It used to be only something like a salvage title would destroy a vehicle value, but now, people run from ANY accident report.