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Do they do that? AFAIK he hasn't heard much from them at all yet, so I was assuming they'd make him an offer of cash.
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I think DavidHM is about right with a target price. These cars are going through the auctions in fair numbers around £4500-£4900. This is for Y 2001 1.4LX 3/5dr with low miles, but perhaps not autos.
Interesting you expected about £7000. These 206s seem to be suffering a huge hyping at garages with a staggering uplift between trade and retail.
I watched a contact recently buy one for £6000 from a dealer who told him he had other buyers waiting who'd offered £500 more just to get the car (!!!). I could have got him the same vehicle for £4000 at auction. Would he listen, would he hell. It was a 206 in a nice colour with alloys, he fancied it and was sucked right in.
M.M
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An update: his insurance company have today sent him a cheque for exactly £7000!
I advised him that while he could haggle for an extra £250, given his lack of mobility etc he should bite their arm off.
He thinks he's probably going to replace with a new car, and is looking at Clio's, only because he has a Renault dealer within walking distance! I suggested that he should also look at the Yaris but I think it fell on deaf ears. (He needs an auto 5 door)
I offered to save him some money by buying through the 'net, but he doesn't understand or trust the internet. (He is after a telly and Currys had posted a flyer through his door. There was a specific Sony in there which I found £120 cheaper on the net but he still went to Currys to buy it...and he really isn't rich!)
Anyway, bit of result on the insurance, and thanks to all here for your advice.
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When he decides what make and model of car he wants (even if it has to be a Clio) get the best UK broker price from HJ's best deals of the week and get the target price from latest What Car? magazine and use them as a haggling tool at the dealer. Don't go above the What Car target price and try and get close to the Broker price.
A friend of mine did this last month and got the local Audi main dealer to match the best UK broker price (admittedly had they not got very close to the price hge would have used the broker anyway) so got the best deal possible at the convenient local dealer.
Good luck
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P E
Is this the way it works? I am particualry interested because I was involved in a head on collision in my wife's car (Audi Cabriolet) on Tuesday and, by all accounts, it's a write-off (confo expected Tuesday).
Circumstances are that the other party has admitted full liability and the insurance company should pay in full.
The interesting bit is that following a visit to the Audi dealer this morning the Glass' guide values the car at £7,100 trade and £9,600 retail.
If the insurance company offers trade price or closer to it than the retail can I insist that they find me a replacement car rather than take less money than retail?
If so surely this will make them see sense and pay something more realistic.
This would be good news as I don't really want to be out of pocket on this. It was after all an immaculate vehicle and meticulously maintained.
Your comments have given me a glimmer of hope.
Huss.....newbie
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>>If the insurance company offers trade price or closer to it than the retail can I insist that they find me a replacement car rather than take less money than retail?
>>
some historic case data from the former insurance ombudsman scheme:
1. theft after keys left in pocket
www.theiob.org.uk/digest/r/reasonable_care_car_key...l
2. valuation of writtenoff cars
www.theiob.org.uk/digest/v/valuation_of_motor_vehi...l
"Usually the policy provides for payment of the ' market value' of the vehicle (or words to that effect). How do we establish that? So far as the Bureau is concerned, two points are now clear. First, that market value is not the second-hand value of the car (unless the policyholder was in fact intending to sell it before it was stolen or written off) but what a replacement of similar age, condition and so on would cost. Second, [See: VALUATION OF MOTOR VEHICLES para 2] there are different markets. The appropriate one is not, as insurers often assume, the market for private sale and purchase of vehicles, through newspaper ads and the like, unless there is evidence to suggest that that is the market in which the policyholder intends to buy a replacement. As a general rule, the appropriate market will be the public one, so the policyholder gets what it would cost to replace the vehicle through a motor dealer. How do we find out what that would be? All relevant evidence has to be considered, but in particular we have to rely on standard trade guides! "
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Dalglish
Many thanks for the links. Really excellent news.
I now await a) The write-off confimation and b) the subsequent offer with particular interest.
I'm off to the Audi website to seek a 'realistic' price for the replacement vehicle might be.
kind regards
Huss.....newbie
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Just a wee update.
The car was wriiten off as anticipated.
The insurance assessor's first bid was £9,500 - very close to the Glass' £9,600 retail price.
There were a couple of '98's in Auto Trader for about £1,000 less but I suspect not in such fine condiction.
Optimistically I pushed for £10,000 wich was immediately countered with £9,750.
One final push from me suggesting that it really was in pristine condition (which he accepted) resulted in a formal letter offer this morning on £9,850.
It proves the earlier points re not accepting the initial quote, and all in all a sensible bit of haggling that has resulted in the insurance company closing the case quickly and me being very happy with the outcome.
Other half alos happy(ish) as she will now get new car.
Huss.....newbie
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quick question...
the 'Gap Insurance' for £300, is this per year? or per policy of the car?
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£300 covers you for three years.
Blue
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£300 is roughly the market rate for three years' gap insurance. Whatever it is, make sure you know exactly what you're going for - I'm sure some people would try and sell you insurance for the gap between payout and current market value, which should be er... £0.
I'm sure it's a fairly big profit maker for the dealer and the insurers. Many motor policies offer new for old within the first year anyway, so often you're only protected between years two and three.
Invoice price is £12k
Value at one year is £8,500
Value at three years is £5k
Assuming linear depreciation in years two and three you get a mean market value/payout figure of roughly £6,750
The car has for argument's sake a 5% chance of being written off
You pay £300 to insure a mean gap in value of £5,250
That makes the mean payout - 5% of £5,250 - £262.50
Result - profit margin of £37.50 for the insurer and a feeling of smugness, hopefully, for the purchaser.
Actually that seems quite a low profit margin, but if the write off rate in years two and three is lower, that will increase significantly.
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Just a wee update. It proves the earlier points re not accepting the initial quote,
Huss.....newbie
pleased for you and your wife - good result.
only downside is that the increased payout by the insurer to you will be passed on in increased premiums to the insured motoring public.
so i hope that NOT many others will follow my advice to ask for dealer forecourt market value.
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Dalglish
I think you are too modest.
I suggest that the truth of the matter is that insurance companies will only ever pay out what it wants or has to, if the ombudsman gets involved.
As mentioned I cheekily asked for £10,000 but received less. The extra, if one refers to it as such, amounted to a maximum of £250 over book.
My belief that I received a good result was on the basis that I received a figure closer to the amount the insurance company WAS prepared to pay rather than an 'over and above'.
As a footnote I have today learned that I will now lose nearly 6 months of my annual premium because " those are the rules". So, in one stroke, nearly all of my 'bonus payment' has been reclaimed...
Hopefully this means that next years' inevitable hikes in insurance for 20 million motorists (including myself) won't now be blamed on me!
;-)
regards
Huss.....newbie
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Huss,
your 6 months premium is an 'Uninsured loss'. However it is a direct result of the accident, this can be claimed off the other parties insurance through a loss adjuster.
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