Expert: Bennie719 - 10/19/2007

Question
QUESTION: Can you answer two questions? I have noticed the same or similar car from the dealer is usually higher than the market value of a total loss vehicle. The consumer usually has to buy the car replacement from the dealer instead of the private party. 1) Can the market value of a total loss vehicle be added the documents, title fees and tax that the dealer usually charges? 2) Can one request a similar car replacement if the market value is not acceptable? If so, what will the other car at fault insurance do? Thank you for your answer.

ANSWER: Hi Ray,
Just like no one pays 'sticker' price for a new car, No one pays asking price for a used car.  In each case these are posted numbers that the dealer would LOVE to receive, but he knows it is merely a starting point from which negotiations begin.  The dealer knows the bottom line he must get to achieve a profit and if you negotiate long enough you can get him down to or near that price.When you negotiate a total loss with an insurance company.....YES, I mean negotiate....you are selling and they are buying.  Their first offer is not etched in stone.  You can negotiate for a higher amount.  Once the amount is determined, they add sales tax for that dollar amount and reimbursement for the unused portion of your auto registration fees.  The only thing you don't get are the documentation fees.
No insurance company will ever purchase a used car for you as a replacement for yours.  This would leave open the door for claims from you every time you experienced a mechanical problem with that car.
I have seen many cases in all my years in the business where, if a fairly new (6-8 weeks old, or less) car was totaled, we would do what is called a 'contract substitution'.  We would purchase a brand new identical car from the same dealer and have the bank financing the car simply change the VIN number on the contract.  This way the client had a new car with the same loan balance and same monthly payments.
I have seen many cases where we got a lower price from the dealer than the client did and we were not only able to give him a new car but a cash refund of our savings.
But a used car............NEVER.
I hope this has been of help.  Please write again if I can be of more assistance.
Sincerely,
Bennie
San Francisco Bay Area 10-17-07 11:08 PM PST

---------- FOLLOW-UP ----------

QUESTION: Thank you for your answer. Can you answer one more question? An adjuster just told me the rental rate but did not say a receipt required. So I just asked my friend to drive me. Can I later demand the other car at fault insurance to compensate for the loss of use vehicle at the rate such as $23.19/day or I must trully get a rental car?

ANSWER: Hi Ray,
No.
If you agree to accept a rental car, the insurance company will contact the rental agency to approve rental for a stated period and have the billing sent to them.
Bennie
10-19-07 1:15 AM PST

---------- FOLLOW-UP ----------

QUESTION: Do you mean I cannot demand the compensation for the loss of use of vehicle if I ask my friend to drive me?

Answer
Hi Ray,
If you elect to not use a rental car, the insurance company is not going to pay you the daily rate for loss of use equal to a car rental.  If you ride the bus to work or pay a friend $3-$4 per day for a ride, then you can discuss reimbursement (ahead of time) with the insurance company.
Insurance is to make you 'whole' again, not to provide you with a profit, nor, does it pay for any 'inconvenience'.
Sincerely,
Bennie
10-19-07 11:51 AM PST