1998 V70 T5 - Actual Cash Value

[PolishRifle]

I was hit on the interstate this morning when a Chevy Avalanche switched lanes and didn't see me. Everyone was fine, we exchanged info but neither car was able to be driven. His truck had the front driver wheel at 180 degrees. The Volvo got the front quarter panel shoved into the tire. When the tow truck came he said he can see frame damage so I assume the insurance company will total it.

So the crux is what should I negotiate for when the come to the Actual Cash Value of the car. it has 165,000 miles on it runs, or I should say ran, great and when looking for a replacement the closest similar cars are 1000 miles away. I bought it in March for about $3,000 off the lot, spent a few hundred on basic repairs like plugs, wires, cap, stereo, bolting down the molding, and repairing the power to the power seats.

[tryingbe]

The first offer is usually low. Don't accept it.

Do you have full coverage?

[PolishRifle]

0 fault on me so its all on the other driver's insurance. When I called my insurance they didn't even start a claim under my policy so I wouldn't have to pay any of my deductible.

[E Showell]

I have been down this road before. Search my posts for insurance. In New Jersey, I can tell you a few things. Full disclosure, I am an attorney by trade. Disclaimer, I do not represent you and I am not offering you legal advice. In New Jersey, an insurer's obligations in adjusting an automobile loss are set forth in the Administrative Code (N.J.A.C.). The provisions are quite specific in terms of the insurer's obligations, including very short time frames and specific procedures that must be followed. From memory (it has been a few years) and without referring to the applicable code, in adjusting a total loss, an insurer doing business in N.J. must give you a settlement draft that would allow you to replace your vehicle with equivalent year, make and model with like options. They have to use comparables located within 30 miles of the principle place of garagement (if that is a word) of your vehicle. The check would have to enable you to go to a dealer's lot and purchase the equivalent car at dealer retail, including sales tax.

When you get the insurer's offer, ask to be provided with their comparable vehicles on which the offer is based. I can virtually guarantee you that none of the comparables they offer will be for a T 5 model (they will most likely all be XCs) and none are likely to be within 30 miles (but that's the NJ regulation). I don't know what the code requirements are in Pa., but this could well be an issue. [I'd do a Google search for PA regulations on adjusting a total vehicle loss, or words to that effect and see if you can come up with the applicable regs. Spend a bit of time reading them to educate yourself about the insurer's obligations to be able to determine whether they are following them. Most times they don't. Like everyone else, they want to cut corners to save money. This is to your advantage.] You will argue that the T 5 is a rare "enthusiast model" with a turbo charged engine of substantially greater horsepower than the bog standard model and which commanded a substantial price premium because of that when new. Accordingly, even a T5 wreck is worth substantially more than a base model wreck.

Predictably, they will never be able to find a T5 comp, but you should stick to your guns in arguing that their comps are not really comps since they haven't nailed the model -- don't forget to dicker over options -- although most have only nominal value. Practice repeating the words "rare" (if you can get some info on production/import figures that might help) "enthusiast model," and "higher horsepower." Look up the specs. on Edmunds.com to back up your claims and refer the adjuster to the site, or offer to send a printout. The turbo-charged, higher horsepower model has substantially more value than the plain vanilla model, at least that is your negotiating approach. Most of all, remember this is a negotiation.

You can be a bull or a bear, but don't be a pig. You can educate the insurer to bring up their offer, and maybe even go back and forth a couple times, but in N.J., if you can't agree on a value, you go to appraisal and you each pay half the cost of the appraiser. That will severely cut down your recovery. Better for you to negotiate for as much as you realistically feel you can get(which is generally a little bit more than you think, but not much more). Also, try to negotiate for the wreck if you can either part it out or fix it. If I recall, you're in Pa. Harry's is right around the corner and you can probably find body panels for cheap. Frame damage is another matter and may prevent putting the car back on the road, but wouldn't prevent parting it out if you have the time and space. I haven't dealt with frame damage before. Parting out may be your best option.

The insurer won't want the wreck. Too old and a headache for them to dispose of. Scrap value is probably $200 or less. You might pick up the wreck for $150. Don't hesitate to make what you think is a shockingly low value offer for rights to the wreck if the car is totaled. I mean like $75-100.

Negotiate for the wreck only after you have established a settlement for the car itself. Be noncommittal about whether you want salvage rights during the negotiation or you might end up paying more for the wreck than you have to. At the end do a Columbo -- just one more thing -- and mention that you might (but just might) be interested in the wreck. Remember, if they take the wreck, they'll have to pay a couple day's charges (most likely) in a storage yard and towing.

Good luck, let us know how you make out.

[PolishRifle]

The insurance company actual cash value came in at $2713 but when I spoke to them on the phone all the comparable were 1998-1999 S70s. When I said those cars are all sedans and not wagons she said that she could go back to the company and do a wider search but there is a chance my settlement could come back lower but I haven't found a wagon with a turbo for under $3000 within 500 miles of my home.

They rated my car in Good Condition and said it was 3% over the average mileage (168k on the odometer). She said to send her receipts for the engine tune up and brake job I did recently. Can I realistically expect a settlement in the $3500 range or should I be happy with the 2700?

[erikv11]

I would be shocked if they came back with a lower value when bumping it up to V70, I would take the risk. This is simply your second (as predicted to be necessary) round of negotiation. This would be a good time to ensure those comparable vehicles were all T5s, if they were then a useful approach may be to thank the adjuster for paying attention to that detail ...

Can you send her ads comparable vehicles?

[PolishRifle]

Well the other driver's insurance has now accepted full liability and they offered me more around what I was figuring I would get and I don't have to pay my deductible which seems like a much more fair deal. I saw a V70-R in that range about 150 miles away I'll see if he'll lower the price to what I get from my insurance. The work he's listed he has done is:

9/10/2012 Rear cam seal 19.46
9/12/2012 Oil cooling lines and seals 241.87
9/18/2012 PCV System, Dipstick, related seals and clamps 253.41
10/18/2012 Hatch trim repair kit 39.44
11/1/2012 Heater Core 216.28
11/2/2012 Thermostat 23.08
12/4/2012 Rotors, pads 476.15
1/17/2013 Prop shaft - Colorodo Drive Shaft 535.00
2/22/2013 Clip 5.95
3/23/2013 Clip 4.09
3/29/2013 CV Axles - Raxles 404.75
4/9/2013 Tune up kit - IPD 181.85
6/1/2013 Gasket, hose, clamps 16.04
6/20/2013 Radiator, hoses, O Rings, antifreeze 492.29
9/10/2013 IAT sensor 56.79
10/18/2013 Rear Main, Turbo Return line seal, Angle Gear seals, Engine mounts, Sway bar links, Install RAXLES front drive shafts 2,867.46
12/2/2013 Plastc part 18.40
12/19/2013 Reseal trans and fluid change 397.50
1/25/2014 Thermostat 23.69
4/28/2014 4 wheel alignment 114.43
5/9/2014 Warning lamp 26.32
5/10/2014 Misc repair parts, warning lamp 126.80
6/18/2014 Fuel Pump, gasket, Retaining nut 377.63
2014 Wheels 700.00
2014 Tires 600.00
2014 Used Wheels and Summer Tires 350.00

The inspection and emissions have expired but that is less than $100, I can't imagine I'll have to do any significant work on it in the near future.

[erikv11]

Strange that they ave a thermostat lasting only 15 months, that should go like 4 years. But raxles axles, Colorado drive shaft, tires and wheels, even the fuel pump has been done recently that is a nightmare on the AWD cars.

Agreed, as long as the shop is reputable and uses quality parts (likely!) this car looks like a winner!

What year is it?

[PolishRifle]

1998, he said the rear main, turbo return line, engine mounts, and front drive shafts were done by a garage, the rest he did himself. I know most people on this site do these repairs on their own so I don't have an issue with that and he has receipts for all the parts.

My other option is to pocket some of the cash and get a 1995 850 GLT manual transmission with 125k miles on it for around $1500 or a 1998 S70 T5 for $2200. The wagon has grown on me though.

[erikv11]

That 98 R sounds like a very fun and well kept car, I highly prefer wagons, I would go that way. Don't forget those 98 R seats are a dream.