Expert: webfoot - 12/21/2006

Question
In late August of this year while my vehicle was stationary
and third in line of 5 vehicle stopped behind a stop sign. Another motorist lost control of his 1987 S10 blazer due to high speed and wet roads while attempting to turn into the street I was on.  With no way to avoid the on-coming car my 2003 Mustang Mach I was struck in the left fender, A-post, drivers door and rear quarter panel resulting in $5,700.00 in damages.  

At the time I filed a claim against the other motorist insurance company Ohio Casualty Group for repairs and diminished value.  After several weeks of negotiations with OCG of Lexington,KY I was forced to file the claim for repairs with my insurance company who was recently reimbursed by OCG.   

At first OCG denied the inherent diminished value claim, and I sought an appraisal group to determine the amount of diminished value through Appraisal Group of America LLC of Portland, OR who I forwarded all reports, repair estimates and detailed repairs with overall repair costs after the vehicle was repaired and $300.00.  

Appraisal Group reported repair costs in their report that were in error, one estimating 9,740.00 and in a later report of $4,296.57 but still showed a loss of $7,540.00 on both inaccurate reports which had been forwarded to OCG. (I am currently working with the appraiser in producing an accurate report but my confidence in them is less than low. Their mistakes have practically ruined their credibility)     

OCG yesterday offered to settle by paying $1,461.00 and stated they could have used GA Rule 17c but they claim they have offered more than the rule would have allowed.

So my question based upon your experience; is this $1,461.00 a fair diminished value on a 2003 Mach I which is a limited production car of which 6,500 models were produced in 2003?  For further consideration the vehicle suffered structural damage to the A-post (which was repaired) along with the fender, quarter panel, windshield and the drivers door which I had replaced with a genuine Ford door at my own expense for $233.00 beyond covered repairs.  

The repairs look excellent but the vehicle still has the stigma of being wrecked.  Additionally, I have been told that Ford dealers, should they take a structurally repaired trade-in, are not allowed to sell them from their lots, they go strait to auction which also effects resale value.  The pre-condition of this car was excellent, it was garage kept, stored in winter from Nov thru March each year had 39,833 miles at the time of collision.  In watching the market these cars are selling for $17,500.00 to $23,000.00. NADA Auto Check reports the damage to the vehicle as "Left side impact with another vehicle"

Thank you for your time and consideration.

John

Answer
Hey John.
As I work in Georgia, the only system that I'm familiar with is GA Fule 17c and therefore, in my opinion, you have received more than a fair DV settlement.  

There are a couple of things to keep in mind.  As a car ages, it becomes more and more difficult to find nice used samples.  If you take good care of this car, it will likely sell itself regardless of what the NADA report says.  

Secondly, what the Ford dealer told you is incorrect.  If they refused to resale any vehicle that had structural repairs then they would have to wholesale half the cars that are traded.  As nearly every car has unibody construction, anything other than a bolt on part is technically considered a structural item.  This includes radiator supports, rear body panels, fender aprons, rocker panels etc.  It is the rule, not the exception that these items will become damaged in the majority of accidents, even at very low speeds.

What is most important is that the car was repaired properly.  As long as an appraiser is not able to find poor workmanship, I don't think you'll have a problem.

Take care.