Buyer Beware: The Downfalls of Purchasing A Vehicle With Hail Damage


BUYER BEWARE: The Downfalls of Purchasing A Vehicle With Hail Damage

So you purchased a new vehicle with hail damage. First off, congratulations! A newer vehicle is always an exciting time. That newer car smell. Something different to drive and more comfortable. We would like to discuss some items you should know for future reference.

Car Insurance

When you go to sign up for new insurance on this vehicle some insurance agents will want to see the vehicle in person or at least have pictures on file. If there is any indication that is has hail damage even in photos you may be denied for any future hail damage claims.

Future Accidents and Claims

We have even seen insurance companies subtract the damage amount for hail damage on a panel for a collision or accident. Lets say your hood for insurance has $500 in hail damage, please note this is NOT a lot of damage. You later get in a front end collision in your vehicle which damages the hood. Some insurance adjusters will then subtract the $500 in hail damage you have on the hood prior and not pay out that amount to have the vehicle fixed from its collision. This is rare and a complete headache for the vehicle owner and the repair shop. Even I myself cannot believe this is an issue but I have seen it myself first hand. So say it costs $1200 to have a body shop take the car apart, paint a new hood, install the new hood, blend the color into the fenders for a color match and put it all back together. The insurance company may only pay out $700.00 total because of the preexisting damages on the hood. Something to take note of.

We touched up damage disclosures and salvage titles here, Click Here To Read More!

The vehicle has a salvage title or damage disclosure is that the vehicle is now valued at a lesser amount. If the vehicle is then totaled out for damage again you will receive much less than the blue book value for the vehicle, often times using rough trade in for a value amount is in the ballpark.

CarFax History Report

Have you heard of Carfax? Its like a credit report for a vehicle. Whenever an insurance claim or accident is reported this information is then uploaded to Carfax to show the vehicle has some type of incident. Lets say this damage slips through the cracks and somehow is not recorded through Carfax. This vehicle gets to you with out any Carfax History Report. You then take the vehicle to a local body shop to have an estimate for your hail damage that you want repaired. Some body shop estimating systems and dealer computer systems report their info to Carfax. EVEN IF YOU DON’T HAVE A REPAIR DONE! So now your vehicle has been reported without your consent to Carfax and everyone from now on will know if they check the vehicles history, it had hail damage, or at least damage all over the vehicle. Some of these common body shop estimating systems include CCC One, Mitchell or Audatex. So be aware!

 

Have you NOT bought a vehicle with hail damage yet but thinking about it? Check out more information HERE BEFORE you buy a vehicle.

 

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