market value for total lost 325i 2006

[ccgiap]

The Insurance company want pay me just RM200,000.00 and get to BMW for help and them reply me like this :-"Feedback from BMW that they are unable to provide a letter to estimate the market price/value for the said vehicle. But their advise is we can use the depreciation of 20% for every year to calculate the market value/price. Example :- Off the road price first year (2007) - RM305,573.00 - 20% = RM244,458.402nd year (2008) - RM244,458.40 - 20% = RM195,566.72Based on the above calculation, we are estimated the said vehicle market value/price is RM195,566.72."Is can be accept or not?

 

[E46Fanatic]

The Insurance company want pay me just RM200,000.00 and get to BMW for help and them reply me like this :-

"Feedback from BMW that they are unable to provide a letter to estimate the market price/value for the said vehicle. But their advise is we can use the depreciation of 20% for every year to calculate the market value/price.



Example :- Off the road price first year (2007) - RM305,573.00 - 20% = RM244,458.40

2nd year (2008) - RM244,458.40 - 20% = RM195,566.72

Based on the above calculation, we are estimated the said vehicle market value/price is RM195,566.72."

Is can be accept or not?

I don't see any 2007 E90 325i sports going for ~Rm195k. I think 20% is on the high side. I was told its 10-15% per year.

 

[cwkf]

Hi,

What is the market value for your 2006 325 sports in the 2nd hand market today? 305k in 2006 is just 200k today?

 

[JJTan]

From my observation, 2007 model is going for around 240K.

 

[astroboy]

If 2007 325i E90 is selling RM195k today, I would cross the road and let cars run over me for being an idiot to have bought a 2007 320i E90 at RM220k few months back !!!

20% depreciation is straight line fixed asset depreciation method for Accountancy standard la! So your car is scraped on the 6th year.. :wink:

Give them RM195k and ask the insurance company to find u such car la! :stupid:

What happen to the 325? Sorry if I didn't pay attention if u've mentioned earlier..

 

[David Yong]

Just take 10% will do.

 

[Bimmer910]

Dear CCGIAP,
You should talk to your insurer along the following lines :

1. Pay out policy for cars that have been written off is at the current market value OR insured sum (common law).

2. Ask them to get an independent invaluater to prove that the car value has depreciated to RM 195k+. If they are unable to do so, then suggest that you will take the sum which BMW is selling their Pre-owned cars (what better indicator of market value) for your year car OR The insured value of your car, WHICHEVER IS HIGHER, AS A SETTLEMENT.

3. They will offer you the lower value ie. on market value (RM240k sounds about right??)) or sum insured (i hope you didnt insure your car for RM100k).

3. You should receive >RM 220k for your vehicle along these lines.

I hope this helps.
Best of luck.

 

[ccgiap]

My car E90 325 just buy on september 2006 is burn it by self of fire on May when i was sleeping, and the car is total lost. the car is parking them after i come back for working at 9.00pm and the car burn it on 5.00am.

 

[Schwepps]

"Feedback from BMW that they are unable to provide a letter to estimate the market price/value for the said vehicle. But their advise is we can use the depreciation of 20% for every year to calculate the market value/price.

ccgiap, in a total loss, the claim payout should be the replacement cost for an equivalent unit if it doesn't exceed your sum covered. So it should be somewhere between the trade-in price and the selling price of a similar-age used car. You could call up a few used-car dealers and ask what their trade-in price would be. You could also check the pre-owned prices of BMW dealers. Ingress is having a pre-owned fair this weekend starting from tomorrow.

Advice from BMW is that depreciation is 20% straight-line? See for yourself whether they apply that to their pre-owned pricing.

Incidentally, I hope you can tell us which insurance company you're using. Insurance companies vary quite a bit in terms of their claims policies, and it pays to know which ones to avoid. :wink:

 

[astroboy]

Oh... now I remember... so, no luck with BMW Malaysia huh?!..

 

[lingzhi]

My car E90 325 just buy on september 2006 is burn it by self of fire on May when i was sleeping, and the car is total lost. the car is parking them after i come back for working at 9.00pm and the car burn it on 5.00am.

OMG?! the E90 just self combust and burnt by itself?! WTF?!

 

[ShiangHorng]

My car E90 325 just buy on september 2006 is burn it by self of fire on May when i was sleeping, and the car is total lost. the car is parking them after i come back for working at 9.00pm and the car burn it on 5.00am.

That's kinda odd.

 

[tamade7]

You should have a better chance to fight your insurance company because your car is less than one year old. Let me talk to my friend and see what he says.

 

[cloudbuster]

This is depressing....man........
20% is way too high for a Bimmer. Should make some official request to review the depreciation percentage as the value of depreciation differs from brands and makes of cars, in addition to the year of production/registration.
When dealing with the insurance companies, all requests should be in B&W, stating market facts with market prices of similar cars during the time of the accident.

Good luck!

 

[devilsadvocate]

Dear CCGIAP,

(1) What is the sum Insured of your car?
(2)If you bought the car from BMW Malaysia then you can and should write in for a market value report - it should be free(it was from 1999-2004 when i used to be an adjuster).
(3) Assuming that the sum Insured of your car is equal or greater to the market value then you should get nothing less than the market value as opined by the franchsie dealer - it is stated in the policy anyway
(4) If your car was bought from a grey importer then an adjusters (licensed) valuation would be used

Very important lesson for all - if you do not want to get into such hassle - you have an option of inserting a 'Agreed Value' clause into your motor policy. so when total loss - no argument - just pay agreed value.

Cheers

 

[Schwepps]

devilsadvocate, good to know that you're an ex-adjuster. Questions, if you don't mind answering:

1. If we disagree with a claim offered by an insurance co, can we hire an independent licenced adjuster and argue our case using his valuation if it's higher?
2. How much more premium would inserting an agreed value clause cost?

 

[tamade7]

Like what devilsadvocate has suggested:

1) Get a market value report
2) If the insurance company refuses to follow. Lodge a complaint to http://www.fmb.org.my/

Good luck brother