by dillyyo » Fri Dec 21, 2012 05:35 am
Hi all. He is the summary of my situation. I own a Infiniti G37S coupe that is loaded. I currently owe about $6,300 and it was in excellent condition. Edmunds shows a trade in of 18,889 and NADA shows a clean trade in of 16,600. Keep in mind that I am very mechanically inclined and have torn down previous hobby cars. Also, my car currently has an audiophile quality stereo system in it that totals about 4-5,000 in hardware value + installation costs.
I was involved in an accident on a NJ highway where I was smashed in from behind while sitting in traffic and was pushed into another truck in front of me. My current and newly obtained ins is Progressive (use to have Allstate). My guesstimates is that this might be a totaled car. My concern is being able to retain the car even if they want to total it. I know I could easily sell just the wheels off my car for 1000-1500, as they actually cost about 4000 and they are only about 2 years old (OEM wheels). I also know that I could easily strip down certain interior parts and get good coin for such parts as I kept my car in top condition.
Can you tell me how I might go about retaining this car if totaled and if it is, do they assess salvage value on scrap metal or on potential value on sold off parts? I would also like to know about my stereo equipment as I would like to pull all of it out, but I don't know what is working and what could potentially be internally damaged without installing again and checking it out. How should I approach addressing these issues.
A side note...my car is currently at a tow place, but I have an autobody repair and collision shop that I have known for years and would allow me unobstructed access to the car and work with me with whatever I wanted to do with the car. Do you advise moving it to that place so I am not restricted in any way, if there are inherent restrictions in the process?
Thanks for your time and feedback.
I was involved in an accident on a NJ highway where I was smashed in from behind while sitting in traffic and was pushed into another truck in front of me. My current and newly obtained ins is Progressive (use to have Allstate). My guesstimates is that this might be a totaled car. My concern is being able to retain the car even if they want to total it. I know I could easily sell just the wheels off my car for 1000-1500, as they actually cost about 4000 and they are only about 2 years old (OEM wheels). I also know that I could easily strip down certain interior parts and get good coin for such parts as I kept my car in top condition.
Can you tell me how I might go about retaining this car if totaled and if it is, do they assess salvage value on scrap metal or on potential value on sold off parts? I would also like to know about my stereo equipment as I would like to pull all of it out, but I don't know what is working and what could potentially be internally damaged without installing again and checking it out. How should I approach addressing these issues.
A side note...my car is currently at a tow place, but I have an autobody repair and collision shop that I have known for years and would allow me unobstructed access to the car and work with me with whatever I wanted to do with the car. Do you advise moving it to that place so I am not restricted in any way, if there are inherent restrictions in the process?
Thanks for your time and feedback.
Posted: Fri Dec 21, 2012 12:38 pm Post Subject:
This all starts with your insurance company. You have the right to have the vehicle towed to a repair shop for an estimate of the damage (do that ASAP! Lots of things turn up "missing" in tow yards, and the insurance company may not cover those losses). Make arrangements with your adjuster to have this done immediately!
If the cost of repairs exceeds about 75% of Actual Cash Value, the vehicle will be considered a total loss by the insurer. You can negotiate the salvage cost of the vehicle and the insurer will deduct that amount from the loss valuation, and you may then keep the vehicle. If repairable, you may choose to do that, and then retitle the vehicle as a "Salvage".
Salvaged vehicles are still insurable, but the ACV will be reduced by at least 25% as a result of the prior damage, even though repaired to like-new condition.
Posted: Fri Dec 21, 2012 05:58 pm Post Subject:
Thanks much for the expedient response. It's already been towed to the auto repair shop and is closed in their facility. I talked about various scenarios with the owner and he said we can discuss further once they determine Monday as to whether the car is totaled or will be repaired.
One last question I had is whether it's prudent of me to pay off my existing lien holder balance as fast as possible? Reason being is the possibility of the lien holder being included on the repair (if not totaled) payment check that is cut for either myself or the shop (Allstate always previously cut it just to us). This way I have full flexibility as to how I want to proceed once the decision is made on the state of the car. Can you provide some thought on that particular concern? Thanks in advance
Posted: Fri Dec 21, 2012 07:21 pm Post Subject:
Reason being is the possibility of the lien holder being included on the repair
I don't see an insurance issue that needs to be addressed. Your question concerns repayment of the loan.
Today, assuming the vehicle is not a total loss, the lender is only concerned about the repayment of the loan, and as long as you are making your payments on time, they will probably not interfere with your decision as to how you choose to proceed with repairs. They may rightfully withhold endorsing the check until repairs are complete. The auto body repair shop deals with situations like this all the time, and it will not prevent them from doing the work.
The money is all in the same pot, so to speak. Nothing will impede your ability to effect repairs. If your (total loss) claim is valued at $16,000, and you owe $6000 to the lender, you will net $10,000 one way or the other, and have that amount available for repairs (minus the salvage cost). If the lender permits you to retain the vehicle as a salvage and simply keep making your $400 monthly payments to them, you'll have most of the $16,000 available for repairs. Effectively, it's the same no matter how you look at it.
The lender will not prevent you from (a) claiming the vehicle as salvage or (b) making repairs as needed. However, your loan contract may have something to say about paying off the loan balance in the event of a total loss -- known as an acceleration clause -- because that is the security interest backing the loan. If the vehicle is totaled, rightfully, the lender is in line ahead of you for the balance owed on the loan.
That's the different issue that has nothing to do with insurance.
You can always try to get them to agree to allow you to continue making payments, but with such language in the loan contract, they are unlikely to do so, because if they do it for you, they have to do it for everyone else, or they can be charged with discrimination, which is far worse.
Read your loan agreement and see what it says.
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