Posted 20 April 2011 - 01:24 PM
why the insurer didn't insist on scrap certificate from car dealer is one contentious point
Posted 20 April 2011 - 01:38 PM
i believe it is a loophole they exploit and somewhat unethical.
usually for total loss basis, the justification is that cost of repair+paper value > market value of car
hence they will only pay you market value - paper value of the car
bcos market value - paper value < cost of repair
now that the car can be repaired and put up to market for sale, means
market value > cost of repair + paper value
means you have been taken for a ride because you could have resold the car in the market on your own at higher value than the amount they compensated you.
Posted 20 April 2011 - 01:51 PM
whether the car is road worthy will be an ethical consideration for the people that put it back into the resale market.
The question now is if the car is really road worthy?
i believe the car is still functionable though. many times the car repair cost is variable and arbitary due to the following factor
1) reputation and charge rate of the repairer (if undertaken by less reputed workshop, the labour cost can be cut by half from say 8k to 4k)
2) use of original brand, oem or reconditioned parts as replacement for the damaged parts of the car (prices vary considerably for these 3 categories)
3) forgoing some expensive part that does not make the car not functionable but rather make the car less safe (eg air bags are very costly to replace but chances of using it are close to 0, hence some workshop cut corners by not replacing the damaged air bags)
Posted 20 April 2011 - 02:11 PM
now if u buy from 2nd dealer.. you have to 1 more issue to worry ... what if you get a total loss vehicle...
Edited by Itsec, 20 April 2011 - 02:12 PM.
Posted 20 April 2011 - 02:42 PM
Sometimes, total lost is declared by the insurance company not because the car is beyond repair but its not economical to repair the car. Most of the time, front damages are repairable unlike rear damages (you can smash up the front and most of the parts will still be replaceable).
I don't think there is anything preventing the insurance company to sell the car to a WS or dealer.
As you have probably read in the news, insurance companies are losing money big time in car insurance partly due to inflated repair cost.
Thus some repairs that could be done for just less than 10K may be declared as 30K or more. Under such cases, I don't think the insurance company will choose to repair the car.
Posted 20 April 2011 - 05:44 PM
i sold my total lost vehicle to a dealer. Why not?
Hi, I was involved in a accident months back, and had my car total loss. I was compensated market value by insurer. I noticed that the car is back in the resale market. Is this legitimate?
Insurance declared lost but I insist to repair.
Insurance paid me the balance from Mktg value against paper value.
I bought a scrap car, remove all body panels, seats and under carriage stuffs.
First, cut the roof and weld it back. Second, replace panels and interior. Third, Spray it white. Fourth, add new white rims.
Looks like brand new but a total lost car.
Recently when I was at Kenny's Alignment, another badly damage swift was there.
Right Toe +1.24 and Left Toe -1.24 so car can go straight.
But with this toe set up, tire wear will be so great that after 10,000km, need to change new front wheels.
Posted 20 April 2011 - 06:52 PM
Posted 20 April 2011 - 07:52 PM
The insurance firm paid you the full value for total lost at time of market pricing & called for an auction and workshop (s) or dealer (s) won the bid and repair / replaced part at their own costs, passed LTA inspection and transfer under their new onwership & re-sales in the market as usaul BUT if the buyer don't know how to check the used car, then it became of transfer of this "problem" car under his / her onwership (If the buyer didn't get the STA / VICOM evalution report (If evaluated, then if the new owner happen to find out, he orhe could sue both the dealer & STA / VICION for the damages - price differences).
Edited by Jefkking, 20 April 2011 - 07:52 PM.
Posted 25 April 2011 - 06:59 PM
Posted 25 April 2011 - 07:01 PM
Yeah it's possible
Even if they don't re sell in local market, they can export it to other markets after repairing it.
The law doesn't make it that total loss means total scrap.
chassis wai already still can export meh? i tot no matter how u repair, so long as chassis wai wun be 100% straight liao and export market wun accept. Maybe I not familiar with the export market.
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