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Old 29th August 2009, 10:20   #31
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For once I hear something positive about a dealer. I'm impressed by the manner in which they have handled this situation. It must be a nightmare for them too since they will be incurring a big loss in an already bad market.

If his financial situation allows him, I would suggest that your friend take option 3 - ideally the new Civic because the outgoing model will again suffer from a lower resale value. I believe the new model will be out in a couple of weeks.
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Old 29th August 2009, 21:24   #32
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Originally Posted by 14000rpm View Post
what happens to the ICE ? what if a particular had 1.5L worth of ICE.who is goingto pay for that and how will that be handled by the insurance?
I'm still looking for answers to my query. how does the insurance account for the Custom ICE?`
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Old 29th August 2009, 21:41   #33
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I'm still looking for answers to my query. how does the insurance account for the Custom ICE?`
If you buy extra ICE, and want to be compensated if anything should happen, you should get it valued seperately and pay a higher premium.
If you didn't do that, its your problem.


Generally for any modifications done to the car, you are supposed to inform the insurance company.
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Old 29th August 2009, 21:44   #34
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Originally Posted by simplythebest View Post
If you buy extra ICE, and want to be compensated if anything should happen, you should get it valued seperately and pay a higher premium.
If you didn't do that, its your problem.


Generally for any modifications done to the car, you are supposed to inform the insurance company.
perfect. thats the reply i was looking for. but do any of us with High end ICE do that? what if one such ICE set up existed on one of the 'submerged' cars and insurance not informed, is it gone down the water,literally.
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Old 29th August 2009, 21:46   #35
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Many people do insure their high end ICE. And if you didn't and something similar to this happens, yes, it's completely in the water.
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Old 29th August 2009, 22:08   #36
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Its indeed great to see DH owning up and doing everything possible to compensate the affected parties. I have given my car for servicing to them for the past year, no issues. They are professional and well mannered people.
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Old 29th August 2009, 23:28   #37
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DH reverted - am not quoting actual figures for now. Deal proposed as follows:

IDV topped up a little
A good discount on Civic
Foreclosure costs to be borne

The double whammy affecting my friend is the car price increase since 2007 and the low insurance meaning he would have to shell out nearly 50% of what he paid for his old car. Need to think hard
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Old 29th August 2009, 23:37   #38
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Sorry, but what is IDV?
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Old 29th August 2009, 23:43   #39
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Sorry, but what is IDV?

To the best of my knowledge , it is Insured Declared Value.
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Old 29th August 2009, 23:52   #40
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Insurer Declared Value
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Old 31st August 2009, 10:59   #41
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Ajit, the way that I see it, your friend couldn't be less bothered about the market value (or quick depreciation of the Civic). To him, he has lost a Honda Civic that had run only 7,500 kms and was as good as new. I mean, 7.5K on a Honda is NOTHING and the car would have served him just as well as a brand new Civic.

The dealer is the one that has to carry the liability. Net net, a majority proportion of the loss vis a vis your friend (and other car owners). I suggest:

1. A MASSIVE discount (by dealer) or a nominal payment upfront (by friend) toward a new Civic. At the end of the day, a new car is one of the only ways that your friend can walk out - positively - from this unfortunate situation.

2. Is your friend a business owner? Had he claimed depreciation on the damaged car?

3. Can you put some hard numbers here? As in, the onroad price of the car at the time of delivery in 2007, whats the exact amount that the insurance is paying for salvage, which insurance company is paying (dealer or friends), the foreclosure penalty (on the loan), onroad price of new Honda Civic etc. etc. Then, we can work out exactly what the dealership out to shell out - in a reasonable way - to make up.
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Old 31st August 2009, 14:42   #42
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I see it the same way: compensation should be such that it puts the owner in the same position as he was before the incident.
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Old 31st August 2009, 17:07   #43
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Quote:
Originally Posted by Thad E Ginathom View Post
I see it the same way: compensation should be such that it puts the owner in the same position as he was before the incident.
Unfortunately, that will never happen. Because when a car depreciates, it loses value. But the owner will never feel it. He still has a beautiful car. Only when something happens, will the effect of depreciation hit him. Hard.
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Old 1st September 2009, 15:59   #44
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One way for a theoretical fair settlement would be to retrieve the value that was lost - identical to what Thad E G.. proposed:

A sum of:

1. Equivalent value of a 2007, 7,500 km run Honda Civic

2. Complete Value for getting the above vehicle back on the road (Road Tax, Insurance as before)

Less:

1. Chances of an accident if the vehicle had been anywhere else other than DH (less than 0.1% - a guess)

For 1, I think it is fair to ask a new Civic at ex-factory at cost, with negotiation on the difference between 1 above and the ex-factory price.

For 2, I think there should be complete compensation (with little negotiation at best).

Cheers,

Last edited by diffsoft : 1st September 2009 at 16:04.
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Old 1st September 2009, 16:07   #45
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We are focussing on 1. A new Civic. The difference to step up to this is the point of negotiation as this car was planned to last for a while
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