[alexrabbi]

Hi all,

Need advice from experts

I met with an accident (hit the divider on the road and then electric post) and damged driver side of the car.

My car is swift (vxi ABS) petrol 2005 december model, My insurance value(IDV) is 109000.

RNS dealer says it will cost approximately 140000 for repair. Insurance guy says he can only give me 50% or 45% of IDV.

Other option RNS dealer provided is to declare total loss and auction it online for scrap..he doesn't know what amount will i approximately get.

i also took opinion of local garage guy he told approximately 65000 for repair

i am confused whether to repair it or go for total loss option...if anyone has gone through similar situation...please advise.

Thanks
Alex

[cs_rajesh]

Quick thoughts that come to my mind as follows:


A) assuming for total loss, you might get 80% of IDV valu ~ 87200 INR income
B) repair at MS Dealer
your cost for repair : 114000 - (45% of 109000) ~ 65000 INR Expense.
C) Repair at local garage
your cost for repair : 65000 INR Expense.

Your decision is based on whether you need this car or willing to go for a new car.
If your decision is get a running car with repair then the options, then based on the quick calculation, repairing at MS dealer with insurance claim seems to better option.

[Aroy]

The car is 12 years old, nearing end of life of 15 years (as decided by RTO). So if you get it repaired and decide to retain it, you will have to renew the registration and pay tax beyond the 15th year of ownership.

As such paying even 65K for a car whose vale is around One Lac does not make financial sense, as what you will get after repairs (assuming you sell) is less than what you get for a total loss vehicle.

I would strongly suggest to declare the vehicle as a total loss. One suggestion is that you take out all the accessories that you have fitted as they do not affect the value of a total loss car.

[dass]

The question should be more in terms of how much damaged the car is. What parts of the car are to be repaired and replaced. For a car which is 12 years old, I don't think any amount of repairs will get it back to to survive many more years. Please post pictures of the car as well as the parts that are needing attention. Based on that, experts here will be able to provide a more logical reasoning.

[greenhorn]

Originally Posted by alexrabbi

Other option RNS dealer provided is to declare total loss and auction it online for scrap..he doesn't know what amount will i approximately get.
Thanks
Alex

Do you have comprehensive or third party cover only? if it's the former, you should get the IDV some % of depreciation. Someone with more experience with insurance should chime in

if the chassis has been damaged, then there is no point in repairing it at all

If its is mostly plastic & non chassis parts, its your call, but i believe totalling it should be the more economical option

[alexrabbi]

Originally Posted by greenhorn

Do you have comprehensive or third party cover only? if it's the former, you should get the IDV some % of depreciation. Someone with more experience with insurance should chime in

if the chassis has been damaged, then there is no point in repairing it at all

If its is mostly plastic & non chassis parts, its your call, but i believe totalling it should be the more economical option

Yes chassis is damaged.

Originally Posted by dass

The question should be more in terms of how much damaged the car is. What parts of the car are to be repaired and replaced. For a car which is 12 years old, I don't think any amount of repairs will get it back to to survive many more years. Please post pictures of the car as well as the parts that are needing attention. Based on that, experts here will be able to provide a more logical reasoning.

Picture of car's damage is attached. You can see chassis is damaged and shocks, etc. Also wind shield is broken.

[Aroy]

In that case better go in for Total Loss and hope to get a decent amount.

[yoscenario2000]

IMO, total loss seems practical option in this case.

Moreover, compromising on strucutral intergrity of a repaired vehicle does not make sense according safety point of view.

[hserus]

Originally Posted by alexrabbi

picture of car's damage is attached, you can see chassis is damaged and shocks etc...
Also wind shield is broken

If that impact was on the drivers side and you survived to post this, the swift is a stronger vehicle than I imagined. You were very lucky.

[gkveda]

Originally Posted by alexrabbi

My insurance value(IDV) is 109000.

RNS dealer says it will cost approximately 140000 for repair.

local garage guy he told approximately 65000 for repair

Thanks
Alex

I would do a simplified cost benefit analysis in the following way to arrive at a decision(I have ignored all interest calculation and methods of earning more money through investments in the below calculation)

I need to spend 1,40,000 OR 65,000 NOW to get the car in good shape.
If I sell off the car now, I need to pay 7 Lakhs to get another Swift(Assuming Swift is the next car too and its on road price is 7 Lakhs)

Case 1: I total the car NOW and go for a new car immediately.

Then, my total expenditure would be: 7 lakhs - 1 Lakhs(Assuming Insurance will give total IDV of 1,09,000 INR) = 6 Lakhs

Case 2: I repair the car by spending 140,000 now and retain the car. Say after 4 years, I sell the car and go for a new car.

Then, my total expenditure NOW would be: 140,000. Then, I use the car for 4 more years. Then, sell the car at say, 1 Lakh and purchase the same Swift after 4 years at 8.4 Lakhs(Value appreciation by 20%)

Then, my total expenditure for the the car is essentially 40,000 + 8.4 Lakhs = 8.8 Lakhs

So, Is it good to get the new car now by spending 6 Lakhs OR Is it good to get the new car after 4 years by spending 8.8 Lakhs?

If I put this 6 Lakhs in bank at 7.5% interest, will I get more than 8.8 Lakhs after 4 years? If the answer is yes, I will retain the car. If I get less than 8.8 Lakhs after 4 years, then, option is to go for new car now.

EDIT: Please change the values to real market values before taking a decision. The numbers here are not real market values but assumed values.

[hserus]

You forgot the key question - how safe is that car going to be to drive after repairing such extensive chassis damage?

He's got his money's worth out of the car in the past twelve years, should now be good to let it go and buy a new one.

Originally Posted by gkveda

So, Is it good to get the new car now by spending 6 Lakhs OR Is it good to get the new car after 4 years by spending 8.8 Lakhs?

If I put this 6 Lakhs in bank at 7.5% interest, will I get more than 8.8 Lakhs after 4 years? If the answer is yes, I will retain the car. If I get less than 8.8 Lakhs after 4 years, then, option is to go for new car now.

EDIT: Please change the values to real market values before taking a decision. The numbers here are not real market values but assumed values.

[gkveda]

Originally Posted by hserus

You forgot the key question - how safe is that car going to be to drive after repairing such extensive chassis damage?

With the data and information provided in the post, the amount of damage to the car, whether the accident is major or minor to conclude it is safe/unsafe to dispose / retain the car can not be concluded.

But, in general, Maruti car hits divider and a pole with all passengers surviving and safe implies that the accident is minor. (Expenditure may be more because of the costly parts getting damaged. This does not imply that accident is major and unsafe to retain)

hence, one way to decide is through the cost comparison.

[alexrabbi]

Originally Posted by hserus

If that impact was on the drivers side and you survived to post this, the swift is a stronger vehicle than I imagined. You were very lucky.

Yes i am fortunate to escape with minor injuries

[prithm]

Originally Posted by alexrabbi

i am confused whether to repair it or go for total loss option...if anyone has gone through similar situation...please advice.

Thanks
Alex

Don't take me wrong, but none of us will be willing to put a price to your life and limb with a car that has smashed to its bare bones.

Please reconsider your decision and go for a new car.

[wildsdi5530]

I don't think the damage is that severe. Chassis repair nowadays is very good. Besides I don't think the chassis is damaged. Suspension, Cross member and other parts are damaged.
I would go for a different option. Get the car repaired at the local garage, Provided he is good and claim insurance from there. Most MASS offer cashless insurance claims. And 65,000/- bill would mean ~10k outflow from your pocket.