Expert: Richard - 4/2/2007

Question
QUESTION: Hi Richard, During the last snowstorm I slid into a snow bank and severely
scraped the bottom of my 2004 Mazda 3i. As  a result, I tried to get off the
bank, not realizing the oil filter had been knocked out, and all of the oil was
leaking out of the engine.  It was determined that I blew the engine and it
needed replacement.  I was shocked because there is no body damage, but
the cost of the rebuilt replacement engine is $7,100.  The car currently has
36,000 miles and is in excellent condition otherwise.  I am responsible for my
$500 deductible and also the horrifying amount of $1,764.00 for NYS
betterment fee and NYS tax $147.00 .  The total amount is $2,411.74 that i
will be required to pay in order to have my car repaired.  I am working with
my GEICO adjustor but it seems to be a lot of money to pay.  The adjustor
claims that the betterment fee is calculated my charging 1 of each thousand
miles you have on the car.  Is this correct?  Do all insurance companies charge
a betterment fee?  Is a betterment fee only applied to internal damage
(engine, etc, ) not body damage.  Would you recommend selling a car after
the engine has been replaced?  In the end is this just an unfortunate
occurrence that has happened or am I being scammed by the adjustor and
the
body shop?  Thank you in advance for taking the time to answer my
questions.
ANSWER: Hi Melissa, I am not all that knowledgeable with betterment fees but I do know that they are applied to more than merely the engine replacement.  Have the adjustor fax, mail or E-mail you the particular section of the law that governs the calculation of the fee.  As far as the issue of the rebuilt engine goes, I have never heard of anyone whom was happy with one.  My opinion is to have the work done and then sell or trade in the car immediately afterwards.  Since the car was not listed as a "total loss" there should not be any type of black mark associated with any VIN search.

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

QUESTION: Richard, I would prefer to sell the car on my own rather than to trade it in.  Would you recommend that I disclose the fact that the engine has been replaced?  I really do not like to be unethical about things, but I am not sure what you meant when you said that there would not be any 'black mark" associated with the VIN search.  What would you do? How do I truly find out what the book value is on the car and what the appropriate price is that I should be asking for when I do sell it?  Thanks again in advance for your candid response.    Melissa  

Answer
Hi again Melissa, there are a number of websites which can give you the value of your car as both the price you would pay for it from a dealer and also if you were to buy it privately.  Kelly blue book is the one most frequently used but there are others such as Carfax.  What I meant by "black mark" was that when a searcher wants to find out the history of a vehicle that he or she is considering purchasing they can use those services to find out if the vehicle was ever considered as being "totalled" by an insurance company.  This would mean that it was involved in an accident in which it was damaged beyond what its actual worth was.  In checking the history of the vehicle it is possible to find out how many times it has changed hands during its lifetime and the reported mileage on it at each transaction.  This can show whether the odometer has been tampered with.  Most used car buyers are going to ask if the vehicle has had front end damage but would not ask if the engine has ever been replaced.  The question of wheher or not to divulge the information about the engine is up to you and your conscience and also depends upon how the vehicle is performing after the transplant.