Hail Yes or Hail No?
Hail Yes or Hail No?
Courtesy of The Car Secrets Guy
Don Roach
www.carsecrets101.com
My expose’ today deals with hail damage and hail damage sales.
Recently we have had a lot of storms. These storms have led to a lot of hail damage to property including vehicles. It seems that all the commercials on television right now are related to “Hail Damage Sales”.
Can the consumer benefit from the “Hail Damage Sales”?
This is something that you need to be knowledgeable about if you are considering buying a hail damaged
vehicle. It’s been my experience that the dealer is going to come out ahead in all cases. Keep this in mind.
If the hail damage is $2500 (and that is minor) the dealer has already been paid by the insurance company for the damage. They have the choice of repairing the damage even if it’s in their own shop or selling the vehicle at a discount to YOU. You are thinking that discount sounds like a great deal so what’s wrong with it?
There may be a lot wrong. First they can fix it at a wholesale price if they own their own body shop or have an alliance with a shop that they use all the time. You, however, will have to pay retail prices.
If they have extensive damage (amount varies state to state) they must disclose this to you if this is a new vehicle. This can make the potential buyer very cautious and sometimes scare them off. They will benefit by selling this now while you the consumer is aware of the hail from the storms.
Here is the catch. You are now focused on the hail damage instead of the negotiating you need to do on the vehicle. When you get to the dealership you just want to get this unpleasant experience over with and you will, if you haven’t done your homework, let your guard down and pay more than you should.
In my book Car Secrets101 I teach you how to save in the negotiations. If you haven’t received your copy yet go to http://www.carsecrets101.com for the book .
One huge thing that you must be aware of is that you will get a portion of what the dealer received from the insurance BUT in a couple of years when you try to trade it in you will have a huge deduction on the value of the damage. The deduction will be more than you received for the damage. If you receive $2000 discount you will receive a deduction of probably $3000 – $3500 when you trade it in. If you get it fixed and they do less than a perfect job of repairs you will receive a deduct for the sub-quality repairs.
What do I advise you ask?
1. Take the vehicle to a body shop that you trust and have them estimate the repairs. Use this estimate in your buying process.
2. Decide whether you are going to repair it or live with it before you make the purchase.
3. Don’t think that you can buy it, wait a few months and turn in a claim into your insurance company and get it fixed. They keep records and pictures and besides that’s called fraud.
4. Consider that if you are going to keep the vehicle 4-6 years that you will look at those little dents each and every day as you get in your vehicle. Can you deal with this?
5. Negotiate your future loss now if you decide to buy it.
6. Don’t forget to negotiate the lowest price on the vehicle, financing and extras. Don’t let the hail damage be a smoke screen and divert your attention.
7. If you do purchase the vehicle be aware that there are dent specialists that can (on minor dents) bring the dents out and not require repainting. It would behoove you to get an estimate from one on these people before you buy the vehicle. If the dealer won’t let you take the time to do this leg work then run. If you don’t it will cost you.
Again I emphasize, Do Your Homework. The money you save can be the more than you earn.
Any questions or things to report e-mail me at don@carsecrets101.com .
Till the next time,
Don Roach The Car Secrets Guy
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