Advice needed on accident

[Krox]

I'm looking for some advice from my fellow RFDer's on behalf of a family member. The situation is as follows.



My family member bought a car from a dealership, it's a 2007 SUV. The had the vehicle for a few weeks. There was a minor problem with the vehicle which the dealerhsip was going to fix. An empolyee from the dealership picked up the car from my family member to drive it back to the dealership. Unfortunately, this employee was in an accident (their fault) and caused a significant amount of damage to the vehicle such that it had to be towed.

To the dealships credit they have taken responsibility for the accident and have fixed the damage (almost $10,000 worth). However, my familty member does not want that vehicle back. They want a new vehicle. Does that seem fair to people? It seems fair to me and I wanted to know how I should advise this family member.

I would appreciate people's opinions.

[3weddings]

Tell your family member to seek counsel. Have them ask for diminished value since it was in that accident and isn't worth as much. They can use that money to get out of the lease (if it's leased). Irregardless tell them to just hand the car back into the dealership when the lease is over.

[raskal]

I fully understand where your family member is coming from, but I doubt they have any legal footing here.

However, if they maintain a good relationship with the dealer they should be able to make a reasonable deal on a new vehicle. It will cost them money, but in the long run they will be happier.

I've been in a similar situation and wished I had sold the car immediately even if I lost some money on it.

[Psycho44]

The family members should have made their intent for a new vehicle known before the $10,000 worth of damages were done. But if the family members weren't made aware or given the option of whether they wanted the car repaired or not than I think they have a legitamate reason for a new, similar vehicle.

[Krox]

They still don't have the SUV, the dealer does. Secondly, they never had the car after the accident, it was towed directly to the dealership.

The situation was confusing in the beginning b/c the dealer thought that my family members insurance should pay for it. In the end they the dealership took responsibility for it. However, there was no discussion on what the appropriate resolution should be before they fixed the vehicle. I personally find it a conflict of interest that they fixed it. They have a vested interest in minimizing their costs.

The vehicle is not leased but purchased.

I am just trying to get people's opinions to what is fair. I've thought of them asking for money associated with the diminished costs. I'm hesitant to recommend this b/c a car is never quite right after a major accident. It is just a bad situation for them. They had a 'new car' for less than a month, and the dealer that sold them the vehicle is a fault for wrecking the vehicle.(the cops have witnesses to say it was 100% employee fault). My personal opinion is if the dealership now thinks the car is in as good as condition then they should have no problem reselling it themselves. I understand they will be out the money of fixing it and some of the resale value as well. However, since they are 100% at fault, I think they should be the party out of pocket, not my family member.

[BartBandy]

Excellent thread.

I have no idea how to answer it, but it's very interesting.

[Roonis]

if the dealership is ultimately taking responsibility for the accident, then they have de facto admitted it was there fault (which I think it is). Therefore, I feel you are well justified in asking for another vehicle since it does diminish the vehicle's value.

You will definitely have a fight on your hands but I totally agree that you should get a new SUV.

[x95zsk]

Maybe a new SUV is too much to ask, but you can ask a compensation in terms of the depreciation of an accident. I would think that would be around $3000-4000 mark in terms of cash.

[BobW]

If the vehicle was new when purchased and your family member had it for less than a month, I'd say that they should be fighting hard for a new vehicle. The dealership can sell that one off of their used lot or turn it into a demo. I wouldn't want to own a vehicle thats been in that serious an accident, regardless on how well it was fixed.

[alamshahid]

What does the insurance company of your family member say? Perhaps you should get an opinion from them.

I would push for a replacement vehicle; since its only 1 month old its not that used.

[thelefteyeguy]

so they fix the damage...and now you want to consider a new vehicle?

...perhaps the dealership could have saved $10K and just sell the parts prior.

I highly doubt anything can be demanded after the vehicle was fixed. An agreement has already be made in returned for a repair vehicle.

[Menace]

I think the dealership is pretty smart on this case. You have to prove that $10k repair did not bring back the condition of a few weeks old car. It is pretty hard unless the car was damaged mechanically or structurally. You can give Car Help Canada a call.

[Krox]

so they fix the damage...and now you want to consider a new vehicle?

...perhaps the dealership could have saved $10K and just sell the parts prior.

I highly doubt anything can be demanded after the vehicle was fixed. An agreement has already be made in returned for a repair vehicle.

That is the point, no agreement was ever made.

When the accident first happenned the dealership said it was a 'grey' area and the vehicle's insurance had to handle it. My family member contacted their insurance (especially for liability reasons since there was another vehicle involved in the accident. basically empolyee ran a red light). Initially the insurance company said they would most likely take care of the damage. After the adjuster got involved and saw the reports and the damage, they claimed the dealership was liable and that they were going to take care of it.

After this when my family member talked to the dealership, they said they were still discussing 'options' and that they would 'take care of it'. Now they have said they've fixed the damage. Again there was no agreement.

When I say this family member wants a 'new car', I don't mean brand new off the line car. They would be willing to accept a comparable demo/floor room model. They just don't want a car that has been in an accident.

[BartBandy]

I have no idea how to answer it, but it's very interesting.

Seems nobody else knows how to answer the question either, but they aren't letting that stop them, so neither will I.

I'd be calling an insurance broker or a lawyer - someone who may have dealt with a similar situation in the past. There is no doubt the vehicle's market value has taken a hit. What you need to know is if anyone else has been successful in taking a dealer or insurance company to small claims court to recoup the difference, or force a new vehicle out of them.

[raskal]

your clarifications have changed my view.

arguing that the vehicle is worse off after the repairs will probably go nowhere, however, there will be a marked depreciation of the vehicle for it's resale value for being in an accident of over $X. (in B.C. X=$2000)


They had the vehicle one month so there's some depreciation there.... say $2000. That's all they should be expected to pay against an identical vehicle.

But if they get that far, watch out for dealer's hidden fees, cause that dealer will not be happy and try to get more $$ from them.

but seriously, they probably need some law counsel on this