Dealer employee totals car

[NJGOAT]

Originally Posted by Me007gold

I can claim that, because it is correct, and it IS the way this is being handled. The owners of the Camaro are NOT getting a used car like they wanted. They are BUYING a new one, and are PAYING difference for a new car and what they were given for the old car.

Again, you are on point with this. You can't claim losses that don't exist. I do feel that they may have had a case against the dealer based on the following scenario...

The dealer caused them financial loss of the stated value of the vehicle. However, the dealer could be held liable for the difference between the insurance value and the retail replacement value of the car. This is something many people can succesfully sue for in an accident and will often win on. It doesn't appear that the dealer was trying to dodge this though as many assumed.

The dealer offered to find them an identical replacement car (not easy) and this would essentially be compensating them beyond the value of their original loss to "make it right", since a retail purchase of a replacement 2012 ZL1 would be for more than what the insurance value of the wrecked car was. However, the dealer was not willing to simply give them a NEW car as that would have a value beyond anything the dealer could be remotely responsible for.

Here's an example using realistic numbers for this situation...

First, forget about how much the loan is for. The loan has no bearing on this at all. What he owes the bank for the car is not material, it really isn't.

The totalled car is worth $44,000. The "loss" is $44,000 and this is what the dealers insurance would pay.

However, the retail replacement cost of the car is more along the lines of $49,000. This $5,000 difference is something that the dealer could be held liable for in court. So, the dealers non-insurance covered potentialy liability here is around $5,000.

A new car costs $55,000. The dealer is in no way responsible for the full $11,000 difference between the loss value and the cost of a new car. They just aren't. It seems that what has happened is that the dealer is kicking in their $5,000 potential liability and the owner is then paying the remaining balance when buying the new car. Add in some financial tricks of lowering the interest rate or extending the term and you can get him back to the same payment.

At the end of the day though, everyone's rage at the dealership is misplaced as they are taking the exact course the dealership offered to begin with.