Sister-in-law got rear (not her fault) ended 2 days after finally purchasing and getting her brand new Mach-E. She’s okay, but car was declared totaled. At first, insurance was going to repair, but Verifacts came and reviewed and saw frame damage. Because of that, it’s now totaled. Not a lease, this was financed. In California, and with the knowledge presented, is there any good course of action she can do? Or is it totaled, have to deal with financing (she owes more than totaled amount), and just overall awful situation to be in?
Did she BUY GAP? I’m assuming she paid markup since you say she owes more than it’s worth unless she rolled - equity
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Pics or it didn’t happen.
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If there was ever a reason to have GAP, this is it
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Bro tell me she ticked the box that asked about GAP.
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Look at the bright side. If it wasn’t totaled she would be driving a vehicle that was even more underwater.
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No markup, but no GAP. ACV came in below what she paid, so will need to pay difference unfortunately.
Yeah – I get it. You never expect it to happen to you, until it happens to you.
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If she’s had it less than a month
How the hell is the insurance not covering it all WTH
again you NEVER take the insurances first offer
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Regardless of gap or not, that first phrase is probably the most important.
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I think having it repaired and being able to continue to drive it would have been a best case scenario. Value would have taken a dip sure, but she financed it because that was going to be her car for many years. Sucks more that parts were coming in and she was told it could be sooner than expected to get it fixed. Until she was told about the frame damage, which meant insurance says car is now totaled.
This is helpful actually. I don’t know if she took the offer yet since she initially requested the car to be fixed. Maybe she can keep holding out and asking for more. Thanks
If the car has frame damage
Just let it go you don’t want that headache but do not take their first offer
Good luck!
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Yeah, we get this part for sure. But after seeing she is fine, the reality hits hard that this situation just sucks.
Do not take the first offer ever. You can send them comparable vehicles in the area and have them match market value plus they will pay tax as well.
Having the car totaled at is WAY better as you don’t want to spend all that money on a car with such a major accident.
Fight with the insurance for a higher payout and get a brand new one. If she bought it for MSRP, a fair payment should cover her full loan.
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Two valid reasons are possible
- She rolled negative into it
- She got taken for a ride by dealer.
Real estate presumes the price paid to be the market price. Not so for cars.
If neither of those situations are present, then fight the insurance for a higher payout. Really you probably want to fight either way. But how insurance works/rights of consumer v insurer is so state specific you need someone who really knows CA insurance law to give you advice (assuming your sister is also in socal).
Edit - I would guess an EV is worth more in CA than say Texas due to additional rebates and higher gas prices. I’m curious how insurance companies value a car. Is it average retail price where insured lives or based on a national database like NADA. I have no idea but if anyone knows I would be curious.
OP If she has literally signed the car with dealership two days ago, the deal may not have been funded by bank yet. Go meet the GSM in person and see if they can do anything possible to help her. In some states, the customers car has insurance from the dealership for the first 30 days to give customer chance to get their own. Not sure about CA. How much negative does she owe ?
I am sure if she convinces them on buying another Mach E with them, the GSM or GM may try to help some how.
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Thanks everyone for all your helpful tips. It’s really cool to see so many people give advice/tips on a crummy situation.
Found out she is talking with a lawyer today, so hopefully it all works out. If I hear the exact outcome, I will post here so others can use this thread in the future.
Many thanks to you all!
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Not sure how it applies to a totaled vehicle, but you can go after the insurance for diminished value value claim when repairs are done. Again, not sure if this applies to your situation.
Didn’t want to recommend this because I am not sure of economics (too many people say talk to lawyer without thinking about legal fees) in California but this is probably a good first step. Especially if it is a lot of money in question.
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