Auto Insurance Claims: Collision 2 Days Before New Car Purchase!, diminished value claim, new car purchase

Question
Hi there,

I was involved in an accident last Monday. It was a three car accident and I just happened to be in the wrong place at the wrong time (2 cars hit, and the impact sent one my way while I was stopped at a red light). I sustained damage to the front of my car- the hood has been pushed down (I can barely get my fingers in there to open the hood), the driver's side panels have shifted back so that the door grinds on the panel, the grill has been cracked, and the right front tire had to be replaced. I had an adjuster come out from the at-fault car's ins. co. on Thursday. I have not yet received an estimate.

My problem is that prior to the accident, I had signed a purchase order and put a deposit on a new car and was planning on trading in my car on Wednesday of this past week (mind you the accident was on Monday). Now I have to have my car re-appraised by the dealership. We have planned that I will keep the adjuster check for the repairs and they will reduce the value of the trade and they will repair the car. I am possibly facing a loss in the trade value and was wondering if I should seek a diminished value claim. The car is an '03 with about 36,000mi, and was valued at around 4500 prior to the accident (as a trade-in by the dealership). Again, I am not at fault for this accident and now have to wait to get my new car! :[

Thanks for the help, it is much appreciated!

Jenna

Answer
Hi Jenna,

Based on the relatively low pre-damage value of the vehicle and the relatively minor to moderate damage, there should not be much effect on the value of the trade. You will just have to wait to see if the dealership tries to lower the trade in value by more than the cost of the repairs. If they do, you should remind them that they will be repairing the vehicle at cost and will still be making a profit on the repairs. You just have to be ready to negotiate with the dealer.

I hope this helps
Richard Hixenbaugh