Expert: webfoot - 4/17/2007

Question
QUESTION: I have a 1988 Nissan Pulsar that was involved in an accident and totaled. The other party's insurance company has accepted liability. The Pulsar had 213,000 miles on the odometer at the time of the accident. However, I had replaced the engine in 2003 with a fully warranted (3 years/36,000 miles) Jasper remanufactured engine at considerable expense ($2295 for the engine plus $670 for labor). The new engine was installed when the odometer read 139,000 miles, so this engine had just 74,000 miles on it.

I have put quite a bit of money into this car over time and the adjuster said he took these expenses into account in making me an offer on the vehicle. However, the insurance company is unwilling to give any consideration to the value of the engine I had installed in 2003. The person I am dealing with told me she could not offer a higher settlement because the engine is a rebuild.

Based on my own research, remanufactured engines are considered to "tantamount to new," as was the ruling in a court case I found.

In determining the value of a car, shouldn't the engine be taken into account? And, if so, what amount should be added to the settlement?

Thank you for your help!






ANSWER: It sounds like you're splitting hairs at this point.
If not for the 03 engine replacement, this vehicle would not have even been on the road.  I havn't even heard the word "Pulsar" since the mid 1990's.  If you got 4 more years out of the vehicle for a $3,000 engine, I don't see how the insurance company would owe you extra for that in 2007.

Good luck!

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

QUESTION: Thanks for the fast response but why disrespect my car? Yes, the Pulsar was last manufactured in the 90's and it was rare to see one on the road these days, which is why I enjoyed driving it. It was well maintained and in great shape for a car that old. It served me for many years and I had hoped to drive it for a few more.

Yes, it would not have been on the the road had I not replaced the engine. By that same logic, it would still be on the road had a careless driver not run a red light and caused a wreck.  If I had the opportunity to sell the car outright , wouldn't the fact that it had a four-year-old engine with 74,000 miles on it affect the value?

Answer
No disrespect to Pulsars.  Nissan made a better car then in some ways than they do now.
If you were selling the car outright, the lower mileage engine would not likely make much of a difference.  It is the mileage on the odometer that deternines a vehicle value more than anything.  The engine in just about any Pulsar with your mileage would have been replaced by now for them to still be on the road.  Now if you had just installed the engine a few months or just a few thousand miles before the total, it would make a little more of a difference, but according to most item betterment guidelines, 75,000 miles is 75% worn out.