Actual cash value vs. Retail value?
Question by starsrblind: Actual cash value vs. Retail value?
I understand the price they offered is the actual cash value. Is it true that the ACV is always lower then the retail value??
I was involved in a car accident and it’s determined that it’s 100% the other party’s fault. My car was a total loss. . My insurance (Allstate) did the valuation and offered me a below market price for my car.
The car I lost is a 1997 Toyota Camry LE 4 cylinder, 4D, Green, 73,800 miles on the odometer, clean title, regular maintenance, fairly new tire, CD player, excellent condition.
They used two same-model cars for comparison when doing the car valuation. One is with 188000 miles and the other is with 114000 miles. And they averaged the two values and came up with 97. But the one I lost is at 73,800 miles.
With 97, I can only get only get a Camry with about 130000 miles, almost doubled the miles I had, according to Yahoo Auto search result. They argued that 130000 miles is comparable with 73,800 miles……..
Best answer:
Answer by the bad seed
they were VERY generous with you..
Add your own answer in the comments!
September 7th, 2010 at 10:28 am
If you believe the estimates are too low, do the research yourself. Check out http://www.craigslist.org as well as in your local newspaper and if you get them the penny saver.
If your mileage was lower than the two they compared, they should have at least used the price on the lower mileage model.
If they don’t want to deal with you, consult a lawyer on your rights. Most accident lawyers will give you a free initial consultation, and you can determine what type of case you have.
September 7th, 2010 at 11:11 am
It depends on the insurance you’re dealing with. Some do retail and some do actual cash value. But they shouldn’t be adding milage to determine the value, that’s wrong. Keep in mind that an attorney could help you get the difference from the other party’s insurance if allstate refuses to pay the correct amount.
September 7th, 2010 at 11:32 am
I would ask them to locate a car with under !00,000 miles for a comparison. Go look on auto trader.com or at some of your local dealerships. Also ask for extra money to cover sales tax and licensing fees for the replacement car.
September 7th, 2010 at 11:48 am
Yes, actual cash value is always lower than retail value! Who ever buys a car for MORE than retail?? Doesn’t happen.
I just ran a quick value on http://www.kbb.com – with my zip code, not yours, but your everything else including milage, and came up with $4705. IF the cd player was customizing equipment, it’s not covered unless you paid extra for customizing equipment on your policy. So I didn’t count that.
I think $6500 is more than fair.
You need to look at private party sales, not retail sales. Retail includes commissions, insurance, overhead, detailing, warranties, etc.
September 7th, 2010 at 12:41 pm
Hiya:
Hopefully they explained ACV to you. ACV is the market value of your vehicle.
That is…if you were to try to sell it the day before it was in an accident – what you would sell it for is the ACV.
Hopefully they told you that the ACV is determined by the area you live in. A Camry in Kentucky is not worth as much as a Camry in Ohio for example.
BTW – if they are not able to find a comprable vehicle…they have to go up to the next newer model year….they can not go backwards. And – if they are using vehicles with more mileage…the simply take a mileage deduction to adjust the value. That is the same with your vehicle.
Anyway….if it’s a total loss and you owe money on it….you’re not going to get the entire value they offered you.
So, hopefully you know by now that a USED vehicle can NEVER be sold for RETAIL.
Clear as mud, eh? lol.
Best o’luck to you!
~jifr!