Does accepting a Cash & Keep diminish the car value?

[merlin803]

Ford replaced the engine on my 22 GT and although it seems to run fine now, I am eligible for a buyback. As an alternative to that, they have offered a cash settlement if I choose to keep the car.

If I keep it, is the value diminished from accepting the cash & keep option? In other words, does something like that show on its Carfax?

I assume that the Carfax is already going to show a new engine regardless, so that in itself would be a deterrent to reselling.

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[Rapid Red]

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[joe603]

It's similar to getting diminished value from the insurance co. after an accident. They are paying for the difference in what the car should be worth when you sell. I know I steered away from cars with major components replaced, such as the engine when I was looking for my 21 GT. I found a great deal on a GT350, but it had the engine replaced...I obviously passed on the car.

 

[merlin803]

It's similar to getting diminished value from the insurance co. after an accident. They are paying for the difference in what the car should be worth when you sell. I know I steered away from cars with major components replaced, such as the engine when I was looking for my 21 GT. I found a great deal on a GT350, but it had the engine replaced...I obviously passed on the car.

Unfortunately, I don't think the "cash & keep" option is going to cover the difference in value (about $4,000 is the offer on a $56,000 MSRP car with about 8,000 miles on it).

On the other hand, if I just let them buy it back, it's not like I can just walk into a showroom and even find another one with my color and options (not to mention the interest rate today on a loan). Kind of screwed either way I guess.

 

[TW Merema]

Do they brand the title? If not then I doubt it really diminishes the value especially if it was a factory replaced new engine. In fact, to some buyers it might even raise the value to know the engine is newer than the car itself. Hell, my 2020 had the mega cap TSB done last October at 13,000 miles, they had it down to a short block and having seen the level of some techs out there I’d have rather had a new engine. Probably would have been quicker too, since it had a front cover leak upon reassembly and they had it an extra 3 days to fix.

 

[merlin803]

Do they brand the title? If not then I doubt it really diminishes the value especially if it was a factory replaced new engine. In fact, to some buyers it might even raise the value to know the engine is newer than the car itself. Hell, my 2020 had the mega cap TSB done last October at 13,000 miles, they had it down to a short block and having seen the level of some techs out there I’d have rather had a new engine. Probably would have been quicker too, since it had a front cover leak upon reassembly and they had it an extra 3 days to fix.

I guess that is the question, if I accepted the cash & keep option, will it show on the car's history as a Lemon Law Transaction? I saw a Carfax the other day that showed it was a "Lemon Law Buy Back".

 

[TW Merema]

If it shows as a buyback then I’d expect a 25-30% decrease in value. In that instance I’d let it go and look for something else.

 

[MISFITGT]

So carfax 90% of the time shows everything. Hail damage is shown as an accident (had it on my 16). On my Genesis G70 even though it was barely hit, it showed up on the car fax as moderate damage (which is to be expected). Anything, even if its small, will show up on the carfax. This could scare away potential buyers in the future.

As of diminished value, we just finished negotiating with the insurance for $4500 on my Genesis G70. They started at $500 and wanted to stop at $2000 until we threatened small claims court and provided a diminished value report (which costs $200).

Just my two cents

 

[EFI]

Unfortunately, I don't think the "cash & keep" option is going to cover the difference in value (about $4,000 is the offer on a $56,000 MSRP car with about 8,000 miles on it).

Why do you think a Ford replacement engine is going to lower your long term value by more than $4,000?

Honestly, I think it would barely lower it if at all. Replacing an engine (especially with a genuine one from Ford) is not like an accident that damages the body and/or chassis.

I would gladly take a brand new engine and $4,000 cash in the bank.

 

[MISFITGT]

Why do you think a Ford replacement engine is going to lower your long term value by more than $4,000?

Honestly, I think it would barely lower it if at all. Replacing an engine (especially with a genuine one from Ford) is not like an accident that damages the body and/or chassis.

I would gladly take a brand new engine and $4,000 cash in the bank.

Just depends if it shows anything on the carfax that would deter dealers or potential buyers. When I attempted to sell my 16 Ecoboost back in the day dealers would lowball me more than normal because they thought it was in an accident, and had no context of what the damage was. (which was hail damage)

 

[merlin803]

Why do you think a Ford replacement engine is going to lower your long term value by more than $4,000?

Honestly, I think it would barely lower it if at all. Replacing an engine (especially with a genuine one from Ford) is not like an accident that damages the body and/or chassis.

I would gladly take a brand new engine and $4,000 cash in the bank.

I don't necessarily think that just the engine replacement would. However, there are some other factors like waiving your right for a lemon law case if you take the agreement.

Also, the original question - does accepting a Lemon Law Cash & Keep show up on the car's history?

I know if I were buying a used car that the history showed had an engine replacement & was part of a "Lemon Law" case that I would just pass on it (not to mention showing that it was in and out of the repair shop multiple times over a 4 month period).

 

[WItoTX]

Take cash, make race car. Problem solved. Never need to sell it, so who cares about resale, and you get money for upgrades. Win-win.

 

[EFI]

Just depends if it shows anything on the carfax that would deter dealers or potential buyers. When I attempted to sell my 16 Ecoboost back in the day dealers would lowball me more than normal because they thought it was in an accident, and had no context of what the damage was. (which was hail damage)

Pretty sure warranty work for mechanical reasons does not show up on Carfax, but it does on an OASIS report.

 

[XFactor7889]

I think this question would be easier to answer if we knew what your intentions were for this car before the engine was replaced. How long did you plan to keep it? Is it a weekend warrior, track weapon, or daily driver? How have these been impacted by the lemon status? How much time do you have to decide? Enough to drive it a bit and determine if it runs as it should and whether you're comfortable with it?

 

[Cobra Jet]

The engine replacement will show in Ford OASIS as well as VIN reporting services.

I've seen various VIN reports from XYZ VIN services where engine replacements, trans replacements and other major repairs are noted. In fact I was looking at a recent CarFax for a 2012 BOSS 302, it listed the engine was replaced @ 9k miles.

Does it matter on a GT? Not as much as it would for a S550 GT350, GT350R, GT500, Mach 1, 50th Anniversary LE, or Bullitt, where those vehicles have prominence by Limited Edition build quantities, Ford Certifications and "numbers matching" means more to a buyer of such niche vehicles.

I'm not saying your car isn't "worth it" so don't read into that above paragraph. All I'm saying is an engine replacement with back up documentation as to why it was replaced goes a lot further than just someone trying to sell a car that has a major repair on some VIN report.

Should you pursue any monies due to you? Yes.

Will you be able to get a diminished value payout based on a warranty engine replacement? No. Ford doesn't do "diminished value" payouts, that's what your Insurance Company does. If you feel you need "diminished value" for a warrantied engine replacement, contact your Auto Insurance Adjuster and inquire - and hope your rates don't get jacked if you accept some feel good payout.

I've been through the Ford RAV Buy Back process with my prior 2016 S550. I've helped others on this site with that process (just search these terms on here such as Ford RAV, Buy Back, MSRP Buy Back, Lemon Law, Lemon, etc). There's plenty of info to help along.

Unless something has changed, Ford isn't going to let a Consumer keep the car and offer some wild cash settlement.

They will usually offer:

1) A Ford ESP Plan of up to 75k or 100k.

Or

2) A Ford Service Plan up to 45k (or more), which covers things like free oil changes, etc.

And

Depending on the relative issue and concerns the Customer had to go through as well as total down time the car spent at the Service Center, they may offer the Consumer monetary compensation. If the vehicle is financed, that compensation will be equivalent to their car payment multiplied by X-months of down time. This decision and total payment is passed down by a Ford Regional Rep. if a Case was initially filed AND authorization by their Supervisor.

They won't offer the ESP and Service Contract deals above as a package, it will be offered as "on the table" and the Customer picks from the (2). If Ford does offer all (3) above to the Consumer, it's in extremely rare circumstances that evolved during the course of the initial concerns, how many times the vehicle had to go in for Service for a rep again length of down time that Consumer did not have their vehicle.

The Buy Back process is (2) options:

A) Refund:
Which is all monies paid refunded, collateral (vehicle) is turned over and the customer walks away from Ford. I've seen some M6G members state that even after getting a refund, that Ford has offered them $Xk off their next Ford purchase.

B) Swap of Collateral:
The Customer can pick any Brand New Ford on a local Dealer's lot and their collateral is swapped for that vehicle. The swap is MSRP value to MSRP Value. All discounts, Incentives (Ford or Dealer), A-X Plans, and any other form of discounting is not allowed - it's strictly MSRP to MSRP, doesn't matter what you initially paid for your existing vehicle at all, even if you bought below MSRP. If the new vehicle you pick is more $$ than the MSRP of your existing, you owe the delta to Ford via cash or financing it. With a swap of collateral, there are State Doc Fees that are applied. In some instances, there may be a mileage use fee. The doc fees and mileage use fees are based on your Home State's Lemon Law provisions - these are NOT "Ford" fees at all. In fact, Ford has to abide by the State's Lemon Laws and does not deviate from them. So any additional costs incurred that are "unfair", write to your State Senator or Governors.

I always recommend to anyone considering the above to read up and be aware of their Home State Lemon Laws and what rights are afforded to the Consumer as those laws vary State to State. When researching, make sure you are on your Home State's ".gov" website which will have the most current and accurate info. Do NOT use the 3rd party websites with Lemon Law info, 99% of the time they aren't accurate. Better Business Bureau has links as well, but sometimes even those are not as current as the actual ".gov" State site.

Once the Collateral is swapped or surrendered back to Ford based on (A) or (B) above, that Buy Back vehicle VIN gets flagged as a Lemon and it's flagged that way forever in Ford OASIS/ETIS, Insurance databases and any DMV/VIN Reporting database - you can wash a title, but can't wash away the VIN history.

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