My Fiesta was stolen. I have just had a cheque through rather unexpectedly from Tesco for £2990.00 A quick snoop on Auto Trader pulls only one example of the same spec, same age (T reg) on with a dealer at £3695, the only difference being that mine had 41,000 on the clock whereas this has 56,000.
Seems I'm being offered trade-in rather than what I'd have to pay to replace. Any thoughts?
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What is the specification?
Don't forget that £3,695 is the dealer's "bite your arm off" figure that would make his dreams come true if he got it, rather than his bottom line. A quick bit of haggling, plus say £200 for any warranty on the car, would mean that Tesco's offer is really only leaving you a couple of hundred out of pocket, apart from the mileage.
Use this advert as a bargaining chip to get more money from Tesco - negotiating costs them money, so they should be keen to settle - but accept that you shouldn't be put in a position where you actually get a free warranty on the car, plus a valet and all the other benefits of buying from a dealer.
Also I can't quite believe that there can only be one Fiesta with the same spec as yours, of the same age. What about S-reg cars with slightly fewer miles, or ones in a different colour, or maybe LXs with alloys instead of Zetecs with electric windows, and so on. All of those might give comparable valuations and will give you a better idea of whether the valuation is fair.
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Hello David,
My car was a 1.25lx 5 dr with a Zetec engine, metallic, f/e/w, a/c 2 owners fsh. I searched 1.25lx 5 door and was surprised to get only 1 car.
Searching 5door fiesta between £2k and £4k brings up lots including some 1.25lx and some 1.25 Zetecs. Most T reg seem to be about £4k, but all seem to have significantly more miles on them.
I'd have thought though that retail price is retail price, you shouldn't have to be a great haggler to be able to get near what the insurer is offering.
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"you shouldn't have to be a great haggler to be able to get near what the insurer is offering."
NONE of the incidents below relate to Tesco:
Many people make the mistake of assuming that their insurer is in some way on their side. They are not. The moment you have a claim that they are likely to have to pay out on, their motives change somewhat and tend to revolve around paying out as little as they can get away with - they are, after all, a business.
Many years ago I bought a bike for £240. A few weeks later it was stolen, and I was offered £120. I provided evidence (the receipt) and they immediately paid up.
Another insurer covered me for redundancy when I had a loan. When I had to claim, they send me a letter with a MADE UP clause stating that I couldn't claim because of my circumstances. I provided evidence (my original policy) and they immediately paid up. Close to fraud? Perhaps.
This is an industry that has been caught holding a seminar on "How not to pay on valid claims" (in the papers a few years ago). Close to fraud? Perhaps.
So, the moral of the story is that their first offer will normally not be worth considering. Get your facts together, write a reasoned and clear letter explaining why you think they are incorrect and you may get a pleasant surprise.
Haggle like mad - what do you have to lose?
V
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Haggle like mad - what do you have to lose?
The insurers clearly expect you to haggle with the car dealer to replace your car on the budget they have given you. So I guess they are happy for you to haggle with them!
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I'm sure someone will be able to give chapter and verse but I seem to recall something about you should not cash the cheque until you have agreed a figure. Went along the lines that if you cash the cheque then you will have been deemed to have accepted their offer as full and final settlement. As I say, not sure but just something that lodged in the back of my mind so be wary.
Cockle
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I certainly won't cash it until it's sorted. What's odd is that they sent me the cheque before they have received all the docs they want from me, V5, MOT etc, I still have all these and I wonder if I should hang on to them before the offer is upped.
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They are likely to try and tempt you with this low offer in the hope that when you have the chance of money in the bank now or a few hundred extra in a few weeks time you will jump at the current offer.
Remember that they will take into account any excess on your policy is added to this cheque so if you have a £500 excess then there offer is for £3400.
The usual bargain back with them is for to ask them to provide you with details of a car that will match your stolen one within their budget. Remember to emphasize the low mileage and full service history are essential.
I had this problem a few years back when my car was written off and they offered £1200 initially so I asked them to put me in touch with the person selling a Mitsubishi with full service history for £1200. 2 weeks later an offer of £2000 was accepted by me.
Why did they not make that offer first - probably they wanted to see if they cheque would tempt me.
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