Glad I wasn't driving a convertible...

[GT Pony]

Hey Matt Maran the way I see it is yea it's now $13500 but how much of that is his labor? At least half? So in essence he'll give you $26k but $6,750 of that was labor paid to him so he's getting the car for <$20k

Gotcha that makes sense now, thanks. Well in that case it sounds like we'd both win. I get more for my car and he gets a great deal on a car, right? :cheers:

Yeah, you can't really deduct his "labor" in this analysis if the work has already started - nobody is going to fix it on their own dime unless they buy it for much less. It's going to take $13,500 for the body shop to fix it regardless if he buys the car for $26K or Matt keeps the car to sell it outright or trade it in someday. I guess he could give Matt $12,500K for the car and Matt just pockets the $13,500 in insurance money (if no work was ever started), but either way it's the same end result.

Plus you already got some extra in diminished value payoff from the 1st accident. What would the car blue book at if it was never in a wreck, then adjust accordingly to see if $26K is what the price should be for the repaired car to see if his offer is fair.

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[Computer Guy]

I appreciate the break down but I'm trying to understand your math. The repairs will cost 13,500 now (they found a few more pieces that need replaced). But I'm not sure how that factors in if he's still fixing the car either way and getting that check either way as well. From what I can tell, he's willing to give me 26k which I doubt I'd ever get if I traded it in to a dealer, so it seems like a good deal for me. I think the upside for him is he's worked on it so he doesn't care about the damage, and it's a few grand cheaper than retail on a fully loaded 2016 GT with 12k miles.

Matt,
Wow, $13,500 in repairs.

I stated this: "So, assume that you originally agreed to pay $36,000 for the car (roughly what I paid for my 2011 Mustang GT), which would be $38,160 if you had to also pay 6% sales tax. If you sell the car to the repair person for what you owe on the car, you will effectively lose $38,160 - $26,000 + $1560 = $13,720 and not have a dime for a down payment..."

An attempt at explaining the math... In my example, assume that with tax you paid $38,160 for the car. If you trade in that car at a dealership on a new car and get $26,000 as a trade-in value, in some states with 6% sales tax that trade in will result in the sales tax of the new car being reduced by $26,000 * 0.06 = $1,560. So, if you sell the car to the repairman, you are then losing another $1,560 when you buy another car from a dealership. Even if the dealership will only give you $25,000 for the car on trade in, you would still be about $500 ahead.

Look at it another way. There is a certain depreciation hit in the first year of ownership of a car that is higher than the depreciation hit in the following years. If your car did not have a second accident, you would likely not be ready to start taking the hit on another first year depreciation on a new car right now. If the repair man is good at what he does, and the car will appear as new when finished, as his offer of $26,000 suggests, the repaired car that you receive in a couple of weeks will be just as good as any off the lot, except that you know how your current car has been treated by you, and how it has saved you from serious injuries twice. As such, it makes financial sense to hold onto your current car that is repaired until you are ready to buy the next car that brings as much excitement as your current car that is currently under the knife. Plus, you will have a story to tell about your current car after driving into a car show.

 

[DJinAC]

Same thought

I agree Matt I would fight for her to be a total loss. I don't like the looks of that c pillar and they are going to have to turn it into a convertible to fix it. I hope they do total it.

 

[Bullitt]

What would the car blue book at if it was never in a wreck, then adjust accordingly to see if $26K is what the price should be for the repaired car to see if his offer is fair.

So that's what makes the offer so attractive. If this car was never hit, in it's current condition it would trade in for between 26-28k. So basically he's offering me blue book value for a car that will almost certainly never be valued that highly again.

Matt,
Wow, $13,500 in repairs.

I stated this: "So, assume that you originally agreed to pay $36,000 for the car (roughly what I paid for my 2011 Mustang GT), which would be $38,160 if you had to also pay 6% sales tax. If you sell the car to the repair person for what you owe on the car, you will effectively lose $38,160 - $26,000 + $1560 = $13,720 and not have a dime for a down payment..."

An attempt at explaining the math... In my example, assume that with tax you paid $38,160 for the car. If you trade in that car at a dealership on a new car and get $26,000 as a trade-in value, in some states with 6% sales tax that trade in will result in the sales tax of the new car being reduced by $26,000 * 0.06 = $1,560. So, if you sell the car to the repairman, you are then losing another $1,560 when you buy another car from a dealership. Even if the dealership will only give you $25,000 for the car on trade in, you would still be about $500 ahead.

Look at it another way. There is a certain depreciation hit in the first year of ownership of a car that is higher than the depreciation hit in the following years. If your car did not have a second accident, you would likely not be ready to start taking the hit on another first year depreciation on a new car right now. If the repair man is good at what he does, and the car will appear as new when finished, as his offer of $26,000 suggests, the repaired car that you receive in a couple of weeks will be just as good as any off the lot, except that you know how your current car has been treated by you, and how it has saved you from serious injuries twice. As such, it makes financial sense to hold onto your current car that is repaired until you are ready to buy the next car that brings as much excitement as your current car that is currently under the knife. Plus, you will have a story to tell about your current car after driving into a car show.

I think the wildcard here is the trade-in. Some people swear they got near blue book for a wrecked car, but the consensus from my car dealer friends is that it's about 20-25% that they knock off for a car with a bad CarFax. They can't "certify" it and most won't even want it on their lot so it would probably be sent right to auction. IF a dealer gave me 26k on trade which is around blue book, I see how I could come out ahead with taxes like you wrote above. But in reality they'd probably give me closer to 21-22k right now if I traded it in. In this light, I feel like I should jump on the body shop's offer.

 

[Tony Alonso]

What's your peace of mind worth?

 

[Bullitt]

What's your peace of mind worth?

Well I was a little leery of the car for a bit after the first accident but I regained confidence in it quickly. The body shop says with the additional welds they do the new roof will be a little stronger than the old one, so I'm confident in the repairs. I think the main reason I'd want to get rid of it is because it seems to be an accident magnet with these freak accidents. Plus, like I said earlier, I may come out ahead financially if/when I trade it in anyway, so I can't really see it hurting me if I take the deal.

 

[Clink]

Put a peanut butter ragtop on that thing and roll out

IMO I'd do whatever I could to get out of that car clean and clear

 

[Tony Alonso]

Should have said, "peace of mind in selecting an option at this point in time". You could probably pick any of the options for whatever are the good reasons. However, whatever one brings you peace is the one for you!

With the Guard being a unique color, I would have a hard time parting with it, despite the damage. However, with that Bullitt out there maybe, being "covered" with a Guard car you know or a replacement one would bring me a peace of mind.

I say to myself if the 2018 Bullitt doesn't come out, I will still love my current '15 GT. If I had to go through a repair, I would probably hang with it if I trusted the repair shop. I probably would be looking less at the financial aspects because of emotional peace of mind in being able to drive such a wonderful car.

Too much rambling so I will close with "hang in there"!

 

[Bullitt]

Should have said, "peace of mind in selecting an option at this point in time". You could probably pick any of the options for whatever are the good reasons. However, whatever one brings you peace is the one for you!

With the Guard being a unique color, I would have a hard time parting with it, despite the damage. However, with that Bullitt out there maybe, being "covered" with a Guard car you know or a replacement one would bring me a peace of mind.

I say to myself if the 2018 Bullitt doesn't come out, I will still love my current '15 GT. If I had to go through a repair, I would probably hang with it if I trusted the repair shop. I probably would be looking less at the financial aspects because of emotional peace of mind in being able to drive such a wonderful car.

Too much rambling so I will close with "hang in there"!

Thanks. Yeah I think what feels right to me is to move on from this car, get this other Guard 2016, and then not worry about whatever the future may hold with a Bullitt until next year. Swapping my car for one with no accidents, without any significant financial penalty sounds like a golden opportunity to have "my" car still, but without the bad history.

 

[Tony Alonso]

The option is worth your peace of mind :-)

 

[Moogatwo]

If KBB on the car is right around $26,000 and that's what your mechanic is offering, then that sounds like a good deal. What are the odds a dealer is going to give you the blue book value? Won't they use black book? The only crappy part about selling now is the timing.

If you want a 2018 you'll be waiting until fall, so you're stuck spending money on either a beater, or another new car until that happens. IIRC you were talking about going the zero down 60-ish month financing route if you were to get another new one? if a bullitt model does come out would you have equity in the intermediate mustang by then with nothing down and just a couple months payments?

Maybe it makes more sense to just hold onto it until you're ready to trade it in on the 2018 or Bullitt. It's too bad you don't have a second car though. All that money you'd save on the current guard green monthly payments could go into your 2018 fund!

 

[JKL1031]

Matt you are famous. Fix it and sell it to a fan! C'mon man think!

 

[Bullitt]

If KBB on the car is right around $26,000 and that's what your mechanic is offering, then that sounds like a good deal. What are the odds a dealer is going to give you the blue book value? Won't they use black book? The only crappy part about selling now is the timing.

If you want a 2018 you'll be waiting until fall, so you're stuck spending money on either a beater, or another new car until that happens. IIRC you were talking about going the zero down 60-ish month financing route if you were to get another new one? if a bullitt model does come out would you have equity in the intermediate mustang by then with nothing down and just a couple months payments?

Maybe it makes more sense to just hold onto it until you're ready to trade it in on the 2018 or Bullitt. It's too bad you don't have a second car though. All that money you'd save on the current guard green monthly payments could go into your 2018 fund!

It really all depends when the Bullitt comes, if it even does. If they're available by the spring then I may have some negative equity, but it still may end up being less than if I kept mine and got destroyed on trade-in because of the accidents. Some are saying it won't even be shown till spring or fall of next year, could end up being a 2019 model, etc. If it's a longer wait like that I may be able to build some equity. It's a wildcard that I don't think I'm gonna really worry about until Ford actually announces something.

 

[Spykexx]

Matt you are famous. Fix it and sell it to a fan! C'mon man think!

That's probably a pretty good way to lose viewers. I'm sure someone would totally buy it, but it would probably leave a pretty sour taste in people's mouth.

 

[MaskedRacerX]

Goddam, that's scary.

There's a long, fun road that cuts through from US1 to 95, and a long stretch of it is under a tree canopy. When we get non-stop rains, the saturated roots get loose and several times trees have fallen over on the road - one time recently a tree fell and hit a car, killed the passenger.

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