2016 Ram 3500 Crash / Diminished Value Result

[1Adam12]

This is a follow up post regarding the crash I had with my 2016 Ram 3500 Mega Cab DRW. I was sitting at a red light in August of 2017, and was rear ended at 35 MPH by a Class C Motorhome towing a vehicle behind it. We were not towing our RV at the time.

The truck had $13,500 in damage. After nearly four months and three trips back to the body shop, the truck wasn't right. I traded the truck with full disclosure. The accident was clearly visible on CarFax as well.

The truck had less than 12k miles on it and was garage kept. Before the crash it had a trade value of $52k. After the crash it was $45k, confirmed at four different dealerships. I heard lots of speculation and opinions on diminished value with no clue how it would turn out.

To settle the property damage portion of the claim, our attorney hired a diminished value expert who examined the car at the body shop and completed a comprehensive report.

I was able to recover the value lost as a result of the crash.

There are obviously lots of factors which can change the outcome. I'm posting this information to share a real world outcome, in hopes it may help someone who may find themselves in a similar predicament.

[jfkmk]

Perrysburg Dodgeboy wrote:

mtofell1 wrote:

dodge guy wrote:
a good shop will make the repair so it would be like it was before the accident so there will be no diminished value!

Can you please provide a reference to a "good shop" that can do this type of repair? I'll sell my house and rental property, empty my 401K and borrow or steal whatever else is needed to go buy this business because I'm going to be RICH!!

There are good shops and bad shops just like in any business or profession. I have a few buddies that are great bodyman. I also know some real hacks that I wouldn't send my worst enemy to. Send me your info and I'll have one contact you. Here is a good clue, any shop that is recommended to you by your insurance company, stay far away from! They are forced to cut corners, use junk aftermarket parts and are paid less then shop rate for the repairs.

That generalization of not going to a shop the insurance company recommends is just not true. The insurance company is going to dictate what parts to use (used, OEM, aftermarket) no matter what shop you go to. It's built into what they are going to pay for the repairs. No shop is going to use more expensive parts than the insurance company pays for and eat the difference. Of course you can pay the difference no matter what shop you go to.

Furthermore, I've hav a few repairs made from the recommended shop from my insurance company over the years. The repairs come with a lifetime guarantee from the shop backed by the insurance company. When I've had the repairs made, I simply pay the deductible at the end of the job and go. In my younger days I used a shop not recommended by the insurance company. I had to wait an extra week after the job was done for the insurance company to pay before I was able to pick up the car.

[jfkmk]

Perrysburg Dodgeboy wrote:

jfkmk wrote:

Perrysburg Dodgeboy wrote:

jfkmk wrote:

Agree with hanging onto the repair information. My SUV was hit while parked and suffered minor damage. When I traded it in I brought the repair info to explain the carfax and got a decent price.
Don't agree with not reporting the accident. Not sure if that is legal or not.

Did not say not to report the accident to the police. I said to inform the bodyshop, and insurance company in writing that you do not authorize them to report anything to any third parties! This means Carfax, AutoCheck and the like.

If you report an accident to the police Carfax will get it. To try to hide the fact a vehicle was in an accident is, at best, dishonest and may be, at worst illegal.
Posts like this are why I always buy new!

So where did I say not to tell the buyer your vehicle was in a wreak? I didn't! I said you can in writing tell the insurance company and the bodyshop not to report the repair to any reporting company!!!

I did just that with my 2004 Ram and the accident never showed up on any reports! Insurance companies, bodyshops and I guess now police departments? (not sure about that one) get paid to report your vehicle and that is why they do it! That is why Bionic Man the bodyshop reported you repair, they got a kick back! If it is in writing (and signed) they can not report the repairs.

When I sold my truck I gave the new owner the bodyshop repair order for replacing the right rear quarter panel,rim, tire and paint work. I do not trade in my vehicles, I sell them and I fully disclose any bodywork along with all repair/service orders.

Don

Why would you ask the body shop /repair shop not to report an accident if you aren't trying to hide the fact from future buyers? Makes no sense.

[mtofell1]

Perrysburg Dodgeboy wrote:

mtofell1 wrote:

dodge guy wrote:
a good shop will make the repair so it would be like it was before the accident so there will be no diminished value!

Can you please provide a reference to a "good shop" that can do this type of repair? I'll sell my house and rental property, empty my 401K and borrow or steal whatever else is needed to go buy this business because I'm going to be RICH!!

There are good shops and bad shops just like in any business or profession. I have a few buddies that are great bodyman. I also know some real hacks that I wouldn't send my worst enemy to. Send me your info and I'll have one contact you. Here is a good clue, any shop that is recommended to you by your insurance company, stay far away from! They are forced to cut corners, use junk aftermarket parts and are paid less then shop rate for the repairs.

I'm well aware of how the body shop and insurance relationship works. My obvious point is that there is no way to repair a vehicle perfectly. It will always show signs of the repair and, to the EXACT point of the thread, will usually have a paper trail and a DIMINISHED VALUE. We all have friends and know people that are great at their craft but there are limitations to anything. Wrecked cars/trucks are at the top of that list. Your perfect body shop guy's best work would be spotted and picked apart instantly. Just as I'm sure he'd spot a repair done by another "perfect" body guy. It's just not possible to leave no trace.

And, before you ask, no I don't have direct experience in auto body. One of my close circle of friends worked and managed body shops for years and now works as a highly paid consultant. He regularly testifies in court on diminished value claims and gets people money they are due. I've seen him in action numerous times and he can spot a repair by even the best repairman. There is no such thing as the, "pre-loss condition" that insurance companies and some blowhards on the radio scream about all the time.

[Perrysburg_Dodg]

mtofell1 wrote:

dodge guy wrote:
a good shop will make the repair so it would be like it was before the accident so there will be no diminished value!

Can you please provide a reference to a "good shop" that can do this type of repair? I'll sell my house and rental property, empty my 401K and borrow or steal whatever else is needed to go buy this business because I'm going to be RICH!!

There are good shops and bad shops just like in any business or profession. I have a few buddies that are great bodyman. I also know some real hacks that I wouldn't send my worst enemy to. Send me your info and I'll have one contact you. Here is a good clue, any shop that is recommended to you by your insurance company, stay far away from! They are forced to cut corners, use junk aftermarket parts and are paid less then shop rate for the repairs.

[Perrysburg_Dodg]

mich800 wrote:

dodge guy wrote:
Yes, but in the end if it was repaired properly they will both be the same truck!

Which one would you buy? One that was properly repaired with no issues or one with poor maintenance that looks like junk with no accidents?!

Key phrase "otherwise similar". In your example they are not comparable substitutes. Diminished value is like depreciation. The further from the initial start the less relevant it becomes in magnitude.

OK how about looks the same but had the ****/beat out of it. You would have no idea how it was taken care of until you buy it and then it is to late. If you have a good body shop fix your vehicle it will be as good as when you bought new. I don't have a problem with a vehicle being in an accident as long as the repairs were do correctly. BTW $25,000 in damage is nothing today, trucks cost $50K to $80K and higher.

How to spot a poorly repaired vehicle is real easy if you know what to look for. If you don't know what to look for I would say take any used vehicle to a repair shop and body shop and have them checked out.

[Perrysburg_Dodg]

jfkmk wrote:

Perrysburg Dodgeboy wrote:

jfkmk wrote:

Agree with hanging onto the repair information. My SUV was hit while parked and suffered minor damage. When I traded it in I brought the repair info to explain the carfax and got a decent price.
Don't agree with not reporting the accident. Not sure if that is legal or not.

Did not say not to report the accident to the police. I said to inform the bodyshop, and insurance company in writing that you do not authorize them to report anything to any third parties! This means Carfax, AutoCheck and the like.

If you report an accident to the police Carfax will get it. To try to hide the fact a vehicle was in an accident is, at best, dishonest and may be, at worst illegal.
Posts like this are why I always buy new!

So where did I say not to tell the buyer your vehicle was in a wreak? I didn't! I said you can in writing tell the insurance company and the bodyshop not to report the repair to any reporting company!!!

I did just that with my 2004 Ram and the accident never showed up on any reports! Insurance companies, bodyshops and I guess now police departments? (not sure about that one) get paid to report your vehicle and that is why they do it! That is why Bionic Man the bodyshop reported you repair, they got a kick back! If it is in writing (and signed) they can not report the repairs.

When I sold my truck I gave the new owner the bodyshop repair order for replacing the right rear quarter panel,rim, tire and paint work. I do not trade in my vehicles, I sell them and I fully disclose any bodywork along with all repair/service orders.

Don

[mtofell1]

dodge guy wrote:
a good shop will make the repair so it would be like it was before the accident so there will be no diminished value!

Can you please provide a reference to a "good shop" that can do this type of repair? I'll sell my house and rental property, empty my 401K and borrow or steal whatever else is needed to go buy this business because I'm going to be RICH!!

[dfm]

"I would rather have one that has it's complete bed than one that had a side cut out and re welded in, even if it "looks" perfect. "


Almost all significant damages to a vehicle are now full parts Replacement rather than repair. Labor for repair is more expensive than part replacement

[NJRVer]

dodge guy wrote:
Yes, but in the end if it was repaired properly they will both be the same truck!

Which one would you buy? One that was properly repaired with no issues or one with poor maintenance that looks like junk with no accidents?!

Your two trucks aren't identical. One is abused and one isn't.

We are talking two identical trucks, same mileage, same maintenance history, same options.

I would rather have one that has it's complete bed than one that had a side cut out and re welded in, even if it "looks" perfect.

[FishOnOne]

dodge guy wrote:
Yes, but in the end if it was repaired properly they will both be the same truck!

Which one would you buy? One that was properly repaired with no issues or one with poor maintenance that looks like junk with no accidents?!

I think you live in an alternate universe

[dodge_guy]

Exactly my point. You have to know what you are looking at.

[mich800]

dodge guy wrote:
Yes, but in the end if it was repaired properly they will both be the same truck!

Which one would you buy? One that was properly repaired with no issues or one with poor maintenance that looks like junk with no accidents?!

Key phrase "otherwise similar". In your example they are not comparable substitutes. Diminished value is like depreciation. The further from the initial start the less relevant it becomes in magnitude.

[dodge_guy]

Yes, but in the end if it was repaired properly they will both be the same truck!

Which one would you buy? One that was properly repaired with no issues or one with poor maintenance that looks like junk with no accidents?!

[NJRVer]

dodge guy wrote:
Dealerships love to quote diminished value so becareful. sounds like you found a bad shop. a good shop will make the repair so it would be like it was before the accident so there will be no diminished value!

In this case the reason for diminished value was the poor repair the body shop did!

Diminished value is take two identical vehicles, one with an accident on the record and one without, the one without will sell faster or for more money. Doesn't really matter how good a job the body shop did.

[Dadoffourgirls]

dodge guy - Are you saying that a 2018 Duramax HD pickup that had $26k worth of repairs should sell for the same price without one that had repairs as long as it is like before?