Bob H

Damaged 1990 Reatta Convertible at Auction

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22 minutes ago, Ronnie said:

Could you elaborate on how that works? Are you saying they paid off the insured hoping to recoup their money at auction?  I've been lucky and not had to deal much with insurance claims and how they are settled. Only a few fender benders and they were taken care of quickly and easily.

 

Yes.  In most states (of course insurance can differ by state) an estimate that is over 75% (I know some are 100%) of the value of the vehicle means its a total loss.  There are also variations of that.  Here in Kentucky, for example, airbag costs don't have to count in that.  A "normal" total loss would be, say, a $10,000 car with over $7500 in damage.  The insurance company pays the $10,000, sells the salvage for, say, $1500, and thus are out $8500 on the claim at the end.

 

On a constructive total loss, you might have a $10,000 car with only $4000 in damage.  Either the owner (because they don't want the car fixed for any number of reasons) will ask it to be a total loss, or the insurance company, if they know the salvage is valuable, might ask the owner if they would rather total it.  If the car appears to be worth more than $6000 as it sits damaged, then paying the $10,000 and selling if for $6000 would net the same result and everybody is happy.  That's a risk they take that it's actually going to sell for $6000.  It's very easy to predict what popular late model cars sell for as there is plenty of auction data on them.  It gets more difficult to predict what a car like this Reatta would sell for because there isn't any data on this type of car with this mileage selling any time recently, or maybe ever.

 

Generally, the insurance adjuster wants the owner to be happy and will do what they can defend to their superiors as making sense, in order to settle the claim.

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A friend of my dad got in an accident and they totalled his car for the airbag going off. This was last year and it was an 06 Honda CR-V. My guess is if a ten year old car they made a lot of gets totaled for an airbag. A 30 year old car no ones heard of definitely will. Could be as simple as that. 

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I have been looking into bidding on it you can hire a broker to bid but there are fees that total almost $900.00  plus transport to my location is $550.00 

so that's $1450.00 cost. So just to start I am looking at 2950.00   

 

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49BuickEight,

Thanks for the explanation. It was very enlightening for someone like me who knows little about insurance. I have a feeling that whoever gets the money for this S-60 is going to be disappointed with what it sells for considering it doesen't have a clear title and it is dealer only auction that prevents most Reatta enthusiast from bidding. I hope it goes to a good home.

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The other factor at least in Florida is that a regular title costs $70. A salvage (branded) title costs $7. Could be that simple.

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Like maybe it ripped the pan off the engine, it  ran out of oil and the engine seized.......just a minor problem

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FYI, the car sold for $5500 plus fees. The reserve was met at $5000 so it indeed did sell. The only hint to the buyer's identity was that  Missouri is home. That could be a broker's base of operations. Hope it doesn't become a flood car! Bob H

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Billy (39 BuickEight) has the inside track on how these deals work.........what has not been addressed is the insurance company is in business to make money.  The transaction is not just what the car is worth and what they can scrap it for......

The other part of the equation is what we call in manufacturing, overhead.    Every day it cost a business so many dollars per hour to keep the doors open.  Everything from rent, taxes, utilities, etc, etc, and pencils.

When a vehicle is wrecked,  it looks like the two choices are,  (1) fix it  (2) scrap it.   Each choice has its plus and minuses,  and every hour someone at the insurance company spends on that case add additional cost.

It seems fairly common with Reattas for them to be scrapped.   I believe that is done because if the fix option is used, someone must not only fix the vehicle, but find the parts.   In the case of Reattas, it may be hard to estimate what the parts will cost and

secondly can they find all the parts they need.   From the insurance company standpoint,  it is probably much cheaper to scrap the car,  eliminating many hours of searching for parts etc...and if the owner is happy with the check amount, the deal is done.

Remember, even if the decision was to fix the car,  the owner must be happy with the results .....or more time (overhead) is expended by the insurance company before that case is closed.   

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Would be interesting to know how the car was insured and for what amount.  That car should have been insured for no less than 20K and I know the car changed hands for north of that when bought.  

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Posted (edited)

Has anyone figured out where this car went and if it is going to be fixed or parted out. I could sure use a red floor MAT

Edited by Booreatta
correction of spelling (see edit history)
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