# Brand new car (2 days old) hit by someone. HELP



## diwakar (Oct 27, 2015)

Hi,

I bought a new Hyundai Elantra 2016 Limited. I got the car last Friday evening (23rd Oct). I had parked my car in the basement parking lot of my apartment building. The car was rear ended by someone on Sunday morning (25th Oct). He had left a note with his contact details. Both the bumpers and the boot door are damaged heavily. The car is not in a drivable condition. I was not at the scene when this happened and the person responsible has accepted that he was at fault. I am worried that the car's value will be greatly depreciated after the repairs. Can I somehow get his insurance company to replace the car with a new one? This is my first car and I have no experience dealing with insurance. My insurance company is yet to send someone to inspect and tow the car. Please advice on what my options are. 

Thank You!


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## Mechanic (Oct 29, 2013)

Contact your own insurer. You may have a clause that will replace it as it's new and they will deal with the other insurer. It will definitely devalue. I would want his insurance to replace it if it were my vehicle, as it's brand new.


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## sags (May 15, 2010)

I had a new car for less than a couple of weeks and a recycling truck backed into me at a stoplight. The front hood, fascia, fender, bumper and radiator were damaged.

The insurance company fixed the car. It came out of the shop looking brand new.

The insurance company isn't required to replace the vehicle and it is likely they won't because they would have to replace the vehicle and would still have to fix it.

There is "gap" insurance available at the time of purchase, which pays for the replacement of a new vehicle, but only when the vehicle is "written off".

In our city, the police run an accident vehicle reporting station, where both sides go to assess damage and provide an accident report.

The report is the document that the insurance companies use to assess liability and move the claim along.

In Ontario, each person deals with their own insurance company. The insurance companies deal with each other.

You should call your insurance company and tell them you want it towed and repaired at the new car dealership.

The dealership will inspect the car, list the repairs needed and the cost, and then contact the insurance company for clearance to fix the car.

Most insurance coverage provides for a rental vehicle while the car is being fixed.

You should not have to pay the deductible ordinarily if you aren't liable, but since the accident occurred on private property it is up to the insurance companies.

When the car is repaired, you will have an opportunity to inspect the car and sign off that the repairs are satisfactory.


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## birdman (Feb 12, 2013)

Have only had a couple of minor dents fixed over the past 10 years but am very impressed how good the workmanship is. A similar situation happened to a friend on a 2 week old vehicle and you can't even tell it was ever hit. Don't worry and at least it was nice of the other party to leave a note.


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## al42 (Mar 5, 2011)

You should call your insurance company and tell them you want it towed and repaired at the new car dealership.

Exactly... similar thing happened to us a few years ago. Wife was Tboned when car was 3 weeks old.
insurance company wanted us to take it to one of their authorized repair shops but we insisted if they wanted to repair it it had to be at the Dealer.
After a little back and forth they finally agreed.


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## Eclectic12 (Oct 20, 2010)

diwakar said:


> ... I am worried that the car's value will be greatly depreciated after the repairs.


Driving it off the dealer lot depreciated it ... even if there was no accident.


Cheers


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## Rusty O'Toole (Feb 1, 2012)

You are entitled to have the car fixed by the repairer of your choice and to have them use original equipment parts (not aftermarket). Whether you can get a new car depends on the insurance company.

If the work is done right it will be as good as new.


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## diwakar (Oct 27, 2015)

al42 said:


> You should call your insurance company and tell them you want it towed and repaired at the new car dealership.
> 
> Exactly... similar thing happened to us a few years ago. Wife was Tboned when car was 3 weeks old.
> insurance company wanted us to take it to one of their authorized repair shops but we insisted if they wanted to repair it it had to be at the Dealer.
> After a little back and forth they finally agreed.


The insurance company's website says that the repairs will be guaranteed only if we use the preferred collision repair shop. This worries me in case I get it repaired at the dealer and something happens to the parts in the future.


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## RBull (Jan 20, 2013)

Ditto to what others have said about getting it fixed properly by the repairer of your choice. The amount of damage and the policies of your insurer will dictate whether you can have the car replaced. 

You should look into diminished value payout if your car is not replaced. Sometimes people can receive a settlement that compensates them for the diminished value the car may have and realized when it is sold as a used vehicle at a later date.


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## diwakar (Oct 27, 2015)

RBull said:


> Ditto to what others have said about getting it fixed properly by the repairer of your choice. The amount of damage and the policies of your insurer will dictate whether you can have the car replaced.
> 
> You should look into diminished value payout if your car is not replaced. Sometimes people can receive a settlement that compensates them for the diminished value the car may have and realized when it is sold as a used vehicle at a later date.


Thanks for the reply. From what I have seen on the internet, to file a diminished value claim I have to obtain an assessment of pre collision value and post repair value. Once I do this do I approach my insurance again?


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## Userkare (Nov 17, 2014)

In 2008, I also had a week-old car that I parked at the furthest end of the lot at work; still some moron in a delivery truck managed to back into it. The rear right door was dented in, but there was no structural damage, and the car was drive-able. The insurance company wanted me to go to one of those 'quicky' dent repair shops, but I insisted on taking it to the dealer where I had bought it. They fixed it so that there was absolutely no difference from how it looked before. They even re-apply the 'shine guard' to the new door panel.

Before taking it for repair, I took several pictures of the damage, and of the frame of the car around the area of the damaged door. I thought that if I ever tried to sell the car, and the buyer questioned the accident, I could show that there was no structural damage that might affect the safety. I would not consider reducing my asking-price because of this; I would say the car was worth more, because the one door is newer than the rest of the car.


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## liquidfinance (Jan 28, 2011)

I hate to say it but you purchased a brand new car. 

It has already depreciated significantly. Were you planning on selling next week? What impact will any reduction in value have? 
For sure it would be annoying knowing you have a brand new vehicle that has already been damaged but so long as it's taken care of by the insurance the value shouldn't be major issue.


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## dougboswell (Oct 25, 2010)

I got my back end crunched a couple of summers ago. I went to a auto repair shop and they were on my insurer's preferred list. I got great service and an excellent job was done. These guys on the preferred list will do a great job as they want the continued business sent to them by the insurer. If they were to keep doing crappy jobs, the car owners would be complaining to their insurers. They insurers would take the auto repair shop off their list if they got too many complaints.


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## lonewolf (Jun 12, 2012)

diwalker I don't think it is going to matter much since the car was new, new parts will most likely be put on the car.


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## AirPro (Mar 31, 2014)

No, they won't pay for a new car unless it's a write off. The thing is, to you it's still brand new and worth every penny you paid for it. For the rest of the world it's just another used vehicle and is subject to a whack of depreciation for the fact that someone else has owned it.

It's very unlikely that any repair will be as good as new especially where it's impacted multiple areas. It may be cosmetically perfect but paint will have cracked, seams will have shifted and their factory sealing will have been disturbed in areas close to the damaged panels. This will most likely result in premature rusting. As a long term or future owner I would be concerned about this.

This is especially true for what was a lower quality "value" vehicle to start with - weaker parts, thinner panels, lower quality paint job etc., etc.. Now, don't get me wrong, I own both an Elantra and Accent myself and they are great value vehicles but be certain that there is no mysterious H-factor. Having owned and worked on them - I know exactly how they do it ...de de da de da de de.

Carproof/Carfax will reveal the repair estimates to future buyers. Assuming the repair is minor, make sure you keep all the related receipts and paperwork to document the scope of the work to the next buyer. You want to be able to show that the work was cosmetic rather than structural. It's surprising how much even minor damage can cost. This will be important when you come to negotiate the selling price.

I'll assume you're in Ontario? The notion of diminished value has been tested in the courts here and precedent has been set. If your insurance company does not accept a claim for diminished value be prepared to seek proper legal counsel. You need to be able to show how much the value of the vehicle has been affected by the accident/repair. With properly performed minor cosmetic repairs, and depending on the extent expect to loose between 5%-10% of the value immediately prior to the accident.


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## diwakar (Oct 27, 2015)

Thanks guys. Here are a couple of pics of the car.


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## fraser (May 15, 2010)

I would not be inclined to insist that the dealership body shop do the repairs. There is no guarantee that their workmanship is any better because of the dealership affiliation/ownership.

Our experience, in several cities, has been that some of the better body shops are actually independent and have been in business for some time. Ask around.

And yes, your car has now been devalued because of the accident. You will find this out when you are trading it in or selling it privately...unless of course you do what we do and keep a car for a good long time until there is so little saleable value left that the accident has no impact.

When we shop for a 3-4 year old used car we will not even consider cars that have accident reports on them.


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## steve41 (Apr 18, 2009)

I have always thought that the sensible thing to do when you buy a new car is to inflict a small dent yourself, just to get it out of your system. I haven't bought a new car for many years, so I can't say I would follow my own advice if the situation arose.


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## scorpion_ca (Nov 3, 2014)

Is there any damage in the front bumper? Did the front bumper touch the front wall?


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## diwakar (Oct 27, 2015)

scorpion_ca said:


> Is there any damage in the front bumper? Did the front bumper touch the front wall?


Yes it did. It is still stuck on to the wall.


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## sags (May 15, 2010)

Nice looking car.....well it was and it will be.

Don't despair. The dealership will fix it up and it will look better than new.

Most body parts nowadays are "bolt on" from the factory and easy to replace. They are made to be replaced easily.

I worked in an auto warehouse and we had panels for every part of a car that were sent to us from the same manufacturer who supplies the assembly lines.

When new cars are delivered to the dealerships, they often have some minor dents or bruises that have to be fixed, from road hazards during transport from factory to dealership. Manufacturers store thousands of finished vehicles outside on large tracts of land, so they are subject to the weather. Then they are shipped by rail or ship to a depot where they are unloaded and loaded onto truck carriers. Then they are transported to the dealerships and driven off the truck into the dealership storage area.

The dealers drive them into inspection areas, then to fix anything, then to the wash up and maintenance area, then parked on the lot.

Lots of driving around and little bumps and bruises here and there, that are touched up at the dealership before sale. (that is why new cars have kms on them)

The dealership auto body shops are experts at lining up the panels. They have the specifications on the gaps and the equipment to measure and align them properly.

No doubt there are lots of other auto shops that could do a great job, but why bother with the hassle of shopping around ?


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## scorpion_ca (Nov 3, 2014)

diwakar said:


> Yes it did. It is still stuck on to the wall.


There could be structural damage too other than bumpers.


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## diwakar (Oct 27, 2015)

That's what I was afraid of. Structural damage.


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## m3s (Apr 3, 2010)

Hate to tell you but this will almost certainly decrease its resale value.

Anyone who knows what to look for will spot any body work rather easily, regardless if it was bolt on or paint. Even if you get a perfect repair (impossible in my experience) today there is a things called CarProof and CARFAX that will show the cost of the repairs, unless you get it done under the table which is pretty much impossible via insurance. I would be demanding some kind of compensation.. Many buyers will flat out avoid any car without a clean history nowadays, unless there's a deep discount

Today's "no fault" insurance policies are a sham


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## Synergy (Mar 18, 2013)

diwakar said:


> That's what I was afraid of. Structural damage.


That's what you should be hoping for! Structural damage that results in a complete "write off". If you purchased limited waiver of depreciation (24 months) you will walk away with the least of: the price you paid for the car, the MSRP on the day of purchase, the cost of replacing the car with a new one (same make / model). 

If the car needs to be repaired I'd go to the dealer or at the very least request all original parts.


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## sags (May 15, 2010)

Exactly why we purchased "gap" insurance when we bought our new car. 

If you drive it off the lot and get in an accident, the general insurer will pay their assessment and the gap insurer tops the amount up to the price of new vehicle replacement.

In either case, the general insurer doesn't pay for new car replacement.

Right......wrong.........or indifferent, that is just the way business operates. No extra warranty or extra insurance = no extra coverage.

Get the car fixed and drive it for 10 or more years and depreciation won't matter. People buying new cars should keep them that long anyways so they pay for themselves.


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## diwakar (Oct 27, 2015)

Yup. I did purchase the limited waiver of depreciation. Glad I did that. I guess I just have to sit back and wait for the estimate.


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## sags (May 15, 2010)

Sort of good news then, but it only applies if the car is a total write-off. 

When our car got smashed into, they fixed the car. Our gap insurance wasn't applicable because it wasn't a write-off.

It will depend on the frame. If it is bent, the car should be totally written off.


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## diwakar (Oct 27, 2015)

Can you tell if the frame is damaged? That's the pic of the part that's right after the back bumper. The bumper fell off and this was exposed.


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## sags (May 15, 2010)

Can't tell from looking at the picture.

They will put it on a hoist and inspect it from the bottom.

Since it happened in a parking garage, it isn't likely there would be enough impact to damage the frame.

It looks bad because the parts are designed to crumple and fall off as they absorb the impact. Otherwise they could be a jagged piece of sheet medal ploughing into the cabin of the car.

Your car is new, so they will have no problem matching the factory paint perfectly.

Don't stress over it. In a year or less, you will have stone chips and parking lot dents............that is just what happens.


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## diwakar (Oct 27, 2015)

My car was towed today. Let's see what the estimator says. I'll probably hear from them tomorrow. Here's a better view of the damage.


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## diwakar (Oct 27, 2015)

Update : the estimate is about $11,000. The estimator says that the rear body panel would have to be removed and a new one will be welded. According to him, the car will be as safe as it was before. Doesn't look like it will be a write off. Any suggestions? Should I just agree for the repairs?


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## Mechanic (Oct 29, 2013)

If it isn't a write off you're stuck with it. I would inspect it very closely after the repair and wouldn't sign to accept unless it was perfect, all body panel gaps even, perfect paint match, etc. Maybe you should ask your dealer what you can get for trade in after you get it back and just get another new one. That way it won't bother you as much, or else just keep it for a very long time.


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## diwakar (Oct 27, 2015)

What do you think of the "rear body panel" being replaced? Will it actually be as safe?


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## diwakar (Oct 27, 2015)

Synergy said:


> That's what you should be hoping for! Structural damage that results in a complete "write off". If you purchased limited waiver of depreciation (24 months) you will walk away with the least of: the price you paid for the car, the MSRP on the day of purchase, the cost of replacing the car with a new one (same make / model).
> 
> If the car needs to be repaired I'd go to the dealer or at the very least request all original parts.


The rear body panel is damaged which I assume is a structural damage and they say that it would not be a write off


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## scorpion_ca (Nov 3, 2014)

I would get at least two other estimates specially one from a dealer for this repair.


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## Mechanic (Oct 29, 2013)

With that much damage, I personally would be discussing the situation with a lawyer. There is going to be huge loss of value after repair, you only have to talk to the dealer that you bought from and ask about the effect it will have on you trading it to give you an idea of the amount. If I was looking for a used vehicle and saw that much repair on the carfax report, I wouldn't even consider buying it.


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## sags (May 15, 2010)

The car lists for $26,000 brand new.

The cost of a lawyer would exceed any claim you could make for diminished value.


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## Mechanic (Oct 29, 2013)

Never thought about the value, probably not worth pursuing. I had one of those a couple of years ago but only kept it for a year


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## diwakar (Oct 27, 2015)

I'm surprised that the car is not written off even though the frame is damaged. I have no experience with this but from what I have read in the forums, I assumed that it would be written off.


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