Depreciation % of repair for a week old car...

Phibsboro

Hi,

I had the misfortune of getting a smack in the back in my then week old car. Their insurance company accepted responsibility no problem and the repair via my dealer came to approx 4k. Their insurance initially offered 5% depreciation (so around 200eur), when I asked them to rethink that they came back with 10%. My dealer had informally suggested that a basically new car would be more like 20%.

Does anyone have any experience of this type of situation? Anyone ever get more than 10% depreciation?

Eggs For Dinner

Phibsboro wrote: »

Hi,

I had the misfortune of getting a smack in the back in my then week old car. Their insurance company accepted responsibility no problem and the repair via my dealer came to approx 4k. Their insurance initially offered 5% depreciation (so around 200eur), when I asked them to rethink that they came back with 10%. My dealer had informally suggested that a basically new car would be more like 20%.

Does anyone have any experience of this type of situation? Anyone ever get more than 10% depreciation?

A car in it's first year should normally expect depreciation of circa 15% of the repair cost. If I had a week old car, I'd be pushing for replacement with new.

Still waters

Eggs For Dinner wrote: »

A car in it's first year should normally expect depreciation of circa 15% of the repair cost. If I had a week old car, I'd be pushing for replacement with new.

Why? What would be the cut off point for replacement, if they fix it why would they replace with new

Vestiapx

Still waters wrote: »

Why? What would be the cut off point for replacement, if they fix it why would they replace with new

If you were buying a 1 year old car with 5 ,000 km on the dial and a genuine reason for sale would you pay the same for the exact same car but with a repair that cost 4k.
A car that has been repaired is simply worth less money.

Eggs For Dinner

Still waters wrote: »

Why? What would be the cut off point for replacement, if they fix it why would they replace with new

It's about indemnity. You had (effectively) an unused car and are entitled to like for like. If you wanted to compromise, I'd take a demo. If the accident was a few months after purchase, a % of the repair cost is reasonable

Phibsboro

So this is my reply to the 10% email...

Hi <xxx>,

The advice I am getting is a car in its first year should be getting a minimum of 15% depreciation contribution. I am also being advised that such a significant repair in a week old car may well warrant a like for like replacement - i.e. you guys buy me a new <car model>. Could I ask that you run this by your manager for their input?

I await their response!

Eggs For Dinner

If you have Comprehensive insurance, some policies allow for full replacement if your car receives significant damage within X months of new. You could go down this route and your insurers will seek recovery of the full amount. Shouldn't be a problem when liability is agreed