r/Insurance • u/Parachuter- • 14h ago
Diminished value question
I bought a 2025 new-used truck a couple of months ago with only 7000 miles on it.
I had the truck 12 days and was rear ended. It ended up being $7600 to make the repairs and they gave me a rental truck for a month and a half while my new truck was in the body shop.
I paid $65000 for the truck and I have the title. The truck shows it’s been in an accident already on carfax.
I reached out to carmax to see what they would pay me for the truck and they offered $55000.
I’m waiting on the insurance companies, appraiser for diminished value to see what they offer. My feeling is that I would like for them to pay me at least $10,000 so I can just sell this truck and go purchase another like truck with low mileage, so I do not have to deal with this if I go to trade it in in the next year or two. I typically trade vehicles every one and a half to two years because of my use of it with my job.
If they come in with a lower offer, would I be unreasonable for asking for at least $10,000?
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u/wacky8ball 14h ago
You are not getting 10 grand in DOV. Remember, Carmax has 1 sole mission, to give you the lowest trade in they can to make more money. You can't use their initial trade in quote to determine your loss. Just see what they offer you and go from there
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u/Bigger_Stronger 14h ago
Lmao you are never getting 10k diminished value for 7600$ damages that ain’t happening you’ll be lucky if you get 1/10 of that
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u/LacyLove 14h ago
10k is not going to happen. It lost 10k the moment you drove it off the lot as a used car. You won't be getting the 7,600 either, you will get a percentage of that.
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u/crash866 14h ago
Even a generous DV offer is 15% of the repairs. Usually around 10% for minor damage on a run of the mill truck.
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u/Current_Inevitable43 13h ago
Purchase price
Trade in value
Value before accident
Value after accident
Are all very different values
Carmax (scum) wants to pay 55k will go through it, detail it, inspect it, do paperwork ect ect then flog it off likely for 65k as sure as hell i wouldn't put name to a vehicle to make a few pennies
Your purchases prices likely included fees and paperwork.
Do you think you have lost nothing having another owner on the paperwork and your use.
How teh fuk do you think AT LEAST 10k is reasonable that you should at least break even if not make a proffit
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u/TechnicalFan7479 14h ago
What CarMax offered you doesn't really factor into the truck's appraisal. You can't use dealer pricing to negotiate that. I'd only expect about 2-3k in the DV payout.
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u/IntelligentBox152 14h ago
You’re missing a number. You’re not owed the difference between what you paid and what they’re willing to pay you now. You still have to prove it but the number you’re looking for is the difference between your truck and an undamaged version of your truck. No one is paying you retail value of what you paid for a used truck now
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u/Sufficient-Yellow637 14h ago
Using the 17c formula and using your original purchase price, you might get around $4800. But you won't because the cash value of your truck is very unlikely to be the $65k you paid a dealer .... so figure something less than this. Mind you the 17c formula isn't necessarily the gold standard, but there is legal precedent behind it. $10k isn't going to happen.
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u/WatchGuyUSA 13h ago
Carmax would have offered 55k to the place you bought it from as well. DV would be the difference in value from before to after the accident, not from what you paid to value after the accident.
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u/Lucky_Boy13 13h ago
lol, you aren't getting $10K. Carmax would offer you several grand less than what you paid retail regardless of accident
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u/drjenkstah 14h ago
I would temper your expectations on a Diminished Value payout. Your vehicle is a 2025 so it’s not brand new and already lost value from you driving it. You’re going to have to support your reasoning for a $10,000.00 payout especially since the repair costs are only $7,600.