DV on $50k Collision Repair

[Mayer]

My 2021 Model S Long Range suffered $50,000 in damage. Both frame rails being replaced; parts on back order. Accident was back in April. Still waiting for parts.
Reputable repair outfit insists vehicle repairable; estimate at 90% of 80% total loss threshold.
I’m in PA and insurer offered to pay diminished value (DV) of $5k.
Looks like pre-crash value of 2021 Model S LR is close to $70k.
Any thoughts or suggestions on DV?
I don’t really want vehicle declared total loss since I paid $78k on 12/31/20, and loan has low interest rate of 2.5%.

I wondered if anyone here has been through this; negotiating DV claim after $50k in damage is repaired.

 

[ATPMSD]

Really surprised they did not total the car. If the repair Bill is really $50,000 and the car value is $78,000, that is 64% of the value. On average cars to totaled at the 70-75% poInt. Given the high cost to repair Teslas they are often totaled a lot earlier. $5K is about right for diminished value.

https://www.jdpower.com/cars/shopping-guides/how-to-calculate-diminished-value

You can hire a lawyer and maybe get more, but i doubt it will be a big number.

In any case, best of luck!

 

[Mayer]

Agreed, should have been totaled. Repairer initially appraised damage at $30k. After parts arrived last week and vehicle placed on frame measuring device, appraisal increased to just over $50k.

I guess it may get totaled yet.

 

[Mayer]

And while I appreciate JD Powers’ formula, it seems the DV of a $50k repair should be more than $5k. $5k sounds reasonable if there was no structural damage.

 

[TLLMRRJ]

Repairer initially appraised damage at $30k. After parts arrived last week and vehicle placed on frame measuring device, appraisal increased to just over $50k.

That's the game the body shops play now to make big bucks. They hook in the insurance company with a low ball repair estimate knowing it will cost more and then take the car apart and burn through the initial estimate before springing the additional costs on everyone. That's why you're driving a Tesla and they have a collection of Lamborghini's.

 

[Mayer]

Right, except I’m not driving my Tesla because it’s been collecting dust at repair shop for two months, so far.

But yeah, seems the delay in identifying the frame damage was deliberate. Now I’ll be waiting another month for those parts to arrive, or longer. And still waiting for insurer to inspect and/or authorize the increased repair estimate which is now at 90% of the total loss threshold (80% of FMV).

Frustrating.

 

[VT_EE]

My 2021 Model S Long Range suffered $50,000 in damage. Both frame rails being replaced; parts on back order. Accident was back in April. Still waiting for parts.
Reputable repair outfit insists vehicle repairable; estimate at 90% of 80% total loss threshold.
I’m in PA and insurer offered to pay diminished value (DV) of $5k.
Looks like pre-crash value of 2021 Model S LR is close to $70k.
Any thoughts or suggestions on DV?
I don’t really want vehicle declared total loss since I paid $78k on 12/31/20, and loan has low interest rate of 2.5%.

I wondered if anyone here has been through this; negotiating DV claim after $50k in damage is repaired.

Get a diminished value lawyer. They will get you way more than $5k and include loss of use.

 

[JenniferMoore]

Believe it or not, because of that repair history, your car has lost almost half of it's pre-accident value. You will have to do your own research but there is one appraisal company that confirms their diminished value opinion by querying six sales managers at new car dealerships. Any other DV appraisal that you obtain will be based on a formula such as Rule 17C ( same as algorithms), sure to be rejected by insurance companies.

 

[Mayer]

Thank you Jennifer.
Vehicle was declared a total loss yesterday.
Payout is $69,900.
Probably for the best.

 

[TLLMRRJ]

Thank you Jennifer.
Vehicle was declared a total loss yesterday.
Payout is $69,900.
Probably for the best.

Looking at what’s for sale, are you seeing that can you replace your Model S like-for-like for $70k?

 

[Mayer]

Tesla has two.
Both are about $72k but with under 15k miles whereas mine had 24k miles.
Auto trader has several for below $70, and most are closer to $65k.
I have the pre-yoke steering refresh, build date in 2020.

 

[TLLMRRJ]

Looks good then. And yes, you would definitely not want a car so heavily rebuilt by some body shop.