topic Re: Diminished value of vehicle in Auto Loans

Diminished value of vehicle

Creditplz — Sat, 22 Oct 2022 01:13:40 GMT

Ummmm so not sure where to post this, but I took my 992 Porsche GT3 to my dealer for break in service..... service tech took it for a drive after oil change and they crashed it, went up a curb... rim is bent, tire exploded... front bumper is coming off and undercarriage is leaking fluids....

yes they crashed my 300k car... lol. Ummm they said they can repair it and make it look new...

I called my lawyer up, he said we need a payment from them for diminished value, we hopped on a call with the GM, gave them 2 options... buy the car from me for the $295k we value it at, or pay us diminished value and fix my car (which I will now sell regardless).

What can anyone here recommend I do?. I know this is a credit forum but I need advice people!

Re: Diminished value of vehicle

SweetCreditObsession — Sat, 22 Oct 2022 04:04:12 GMT

I'm so sorry that this happened to you, especially with getting a car these days being a hassle.

Since you want to sell it if it gets repaired, would taking the $295K pay off what you owe and position you to get the car that you want? If yes, what's holding you back from doing that?

If not, you might want to ask your lawyer if you have other any other options to get more money.

Re: Diminished value of vehicle

Creditplz — Sat, 22 Oct 2022 04:36:13 GMT

@SweetCreditObsession i paid $238k for the car, I currently owe $172,120 with PFS.

the car pre accident was easily worth 280k, market value is 295k and they have one in stock for $299k with 140 more miles then mine..

I just want the fair value of the vehicle, cause simply putting it, this car will have major issues down the road if it's fixed, paint will never match as it'll be done in a body shop.

to be honest, I'd even be willing to take what I paid for the car at this point so long as they give me another allocation.

My lawyer said we will wait till Monday for the GM to review our proposals and take it from there.. but he agrees any value from before has significantly taken a dive.

has anyone here dealt with diminished value?

Re: Diminished value of vehicle

cashorcharge — Sun, 23 Oct 2022 17:14:43 GMT

Despite them willing to fix it, I would never take the car back. You're exactly right that it will never match, it will never be the same and whether you decide to keep the car for six months or six years, it will always be a stigma and you will never know exactly what that lost value will be when the time comes for you to get rid of the car. I would let it go now and make them take the loss.

And find a new Porsche Dealer!

Re: Diminished value of vehicle

Shooting-For-800 — Mon, 24 Oct 2022 02:45:41 GMT

They are a dealership, have them sell it.

Give me fair market value plus attorney fees plus $10% inconvience.

You can't buy a replacement for what you paid, right?

Why should you suffer for their problem.

They have insurance and make plenty of money.

Re: Diminished value of vehicle

disdreamin — Mon, 24 Oct 2022 23:39:40 GMT

I'm with the crew saying let the dealership offload it, they wrecked it. They should pay you the true market value of the vehicle, no sense in taking anything less. Let them repair the vehicle and sell it, you shouldn't be forced to deal with selling it due to their error.

You may have already seen this, but the website below was an interesting read related to your question:

https://www.pca.org/news/diminished-value-an-insurance-industry-secret

Re: Diminished value of vehicle

Creditplz — Tue, 25 Oct 2022 04:00:07 GMT

Today after being contacted by The Drive & Jalopnik they agreed to buy the car for $295k with a NDA & "settlement & release agreement" saying I will not name them.

We agreed... and they sent the payoff to PFS, and wrote me a check for the difference.

At first the GM came at me saying, we gave you an allocation at cost (not true) and the car should be sold back for what I owe on the loan... then when I showed him the journalist who have contacted me etc.... yeah.... they caved in 3 seconds looool.... needless to say I probably won't get an allocation for a GT3RS anytime soon...

this probably costed the dealer $160k+

Re: Diminished value of vehicle

cashorcharge — Tue, 25 Oct 2022 20:57:52 GMT

@Creditplz wrote:
Today after being contacted by The Drive & Jalopnik they agreed to buy the car for $295k with a NDA & "settlement & release agreement" saying I will not name them.

We agreed... and they sent the payoff to PFS, and wrote me a check for the difference.

At first the GM came at me saying, we gave you an allocation at cost (not true) and the car should be sold back for what I owe on the loan... then when I showed him the journalist who have contacted me etc.... yeah.... they caved in 3 seconds looool.... needless to say I probably won't get an allocation for a GT3RS anytime soon...

this probably costed the dealer $160k+

I wonder how "the Drive" and "Jalopnik" got wind of the accident?

I am glad you held your ground and got what you should have. Had they fixed the car, you would likely not see that kind of future payoff and I was thinking about 'gap insurance' but I don't know if PFS offers that...plus getting that to pay out would have been lots of drama.

Re: Diminished value of vehicle

pizzadude — Tue, 25 Oct 2022 23:20:42 GMT

@Creditplz wrote:
Today after being contacted by The Drive & Jalopnik they agreed to buy the car for $295k with a NDA & "settlement & release agreement" saying I will not name them.

We agreed... and they sent the payoff to PFS, and wrote me a check for the difference.

At first the GM came at me saying, we gave you an allocation at cost (not true) and the car should be sold back for what I owe on the loan... then when I showed him the journalist who have contacted me etc.... yeah.... they caved in 3 seconds looool.... needless to say I probably won't get an allocation for a GT3RS anytime soon...

this probably costed the dealer $160k+

I heard of a similar situation a few years ago. A dealership parked cars awaiting service in an open lot adjacent to the service area, left the keys in the ignition, so somebody just hopped into a Mercedes and drove away. The police found the car a month or so later, and the owner negotiated the following with the dealership: a very large check for diminished value, another large check for the stolen contents of the car ( golf clubs, electronics,...), full repairs, new tires & rims, 100% service & warranty coverage for as long as they own the car.

I'm sure the dealership has insurance for situations like this and it's laughable that they'd try to lowball you on the buyback, I'm sure they'll have no trouble selling it once it's repaired.

Re: Diminished value of vehicle

FLLGuy — Tue, 25 Oct 2022 23:59:43 GMT

If not in CA someone in FL will always buy that car. Exotic rebuilt titles are very hot here in South Florida, i'm sure the dealer will get their money back after they genersouly take care of you first.

Re: Diminished value of vehicle

Creditplz — Wed, 26 Oct 2022 03:41:21 GMT

@cashorcharge i may be responsible for starting a Reddit post that had 8k upvotes and 1.6k comments hahahaha, but they asked me to delete it, which I did once we signed all the paperwork and got the check...

the GM said this car has "extensive" damage and the issue is.... the leaking stuff in the undercarriage and bent control arm... etc.. he said they will 300% find more issues when they tear the car apart at the body shop and will more then likely just wholesale it at auction..

another issue he said was the GT3 car has to use Porsche factory parts which are in VERY short supply, so it'll have to be wholesaled anyways... he said this after everything when I was grabbing all my contents from the car.

Re: Diminished value of vehicle

Creditplz — Wed, 26 Oct 2022 03:44:28 GMT

@FLLGuy yeah I'm in SoCal! I know people rebuild these with OEM parts but OEM parts are in veryyyy short demand for the 992 GT3, I'm sure it will end up in FL with someone who is interested in a rebuild! Hopefully at a bargain price!

im kicking myself, I asked for a loaner for a month.... as a term that I needed... I should've asked for a allocation for a '23 GT3!!!! **bleep**!

Re: Diminished value of vehicle

Creditplz — Wed, 26 Oct 2022 04:08:27 GMT

Also I'm getting a '23 R8 GT... after this loss kinda feels necessary... I will update pics when the car comes in! Already approved for financing with Audi financial Serv

Re: Diminished value of vehicle

cashorcharge — Wed, 26 Oct 2022 17:26:38 GMT

@Creditplz wrote:
@cashorcharge i may be responsible for starting a Reddit post that had 8k upvotes and 1.6k comments hahahaha, but they asked me to delete it, which I did once we signed all the paperwork and got the check...

the GM said this car has "extensive" damage and the issue is.... the leaking stuff in the undercarriage and bent control arm... etc.. he said they will 300% find more issues when they tear the car apart at the body shop and will more then likely just wholesale it at auction..

another issue he said was the GT3 car has to use Porsche factory parts which are in VERY short supply, so it'll have to be wholesaled anyways... he said this after everything when I was grabbing all my contents from the car.

HAHAHA! I guess the nudgeing worked in your favor @Creditplz !

I've had great experiences at Porsche Newport Beach. PM if you need a contact.

You're right...they'll likely wholesale it...or maybe it will show up in Scottsdale at Barrett Jackson in January 2023.

Enjoy the R8

Re: Diminished value of vehicle

Creditplz — Wed, 26 Oct 2022 19:41:05 GMT

Thank you @cashorcharge I actually bought my first 911 from Gio when he was at walters in riverside, and know the GM very well!

I like Newport but since their a small dealer I can't get a GT3RS without a $200k ADM... also from what I've heard, 918 clients come first... then GT2RS then us..

oh well... thanks everybody !!

Re: Diminished value of vehicle

SweetCreditObsession — Wed, 26 Oct 2022 22:23:44 GMT

@Creditplz wrote:
Today after being contacted by The Drive & Jalopnik they agreed to buy the car for $295k with a NDA & "settlement & release agreement" saying I will not name them.

We agreed... and they sent the payoff to PFS, and wrote me a check for the difference.

At first the GM came at me saying, we gave you an allocation at cost (not true) and the car should be sold back for what I owe on the loan... then when I showed him the journalist who have contacted me etc.... yeah.... they caved in 3 seconds looool.... needless to say I probably won't get an allocation for a GT3RS anytime soon...

this probably costed the dealer $160k+

I'm glad that you've got the car off your hands and got a little extra in your pocket.

I agree with others, however, I'd be DONE with this dealership. It's clear that they weren't acting with integrity toward you until you had to threaten them.

Best wishes with finding a better dealership and a car that you can be happy with...that's in tip top shape!