[CBlazer]

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.

[14000rpm]

Originally Posted by 14000rpm

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?`

[simplythebest]

Originally Posted by 14000rpm

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.

[14000rpm]

Originally Posted by simplythebest

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.

[ImmortalZ]

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.

[hrman]

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.

[ajmat]

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

[Nikhilb2008]

Sorry, but what is IDV?

[aaggoswami]

Originally Posted by Nikhilb2008

Sorry, but what is IDV?

To the best of my knowledge , it is Insured Declared Value.

[nitrous]

Insurer Declared Value

[GTO]

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.

[Thad E Ginathom]

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.

[Nikhilb2008]

Originally Posted by Thad E Ginathom

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.

[diffsoft]

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,

[ajmat]

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