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Any Thoughts Welcomed.

Posted by on Nov. 23, 2012 at 2:49 PM
  • 32 Replies

As many of you know, I live abroad most of the time. This is the second time we have moved outside the US and it is usually for 2 - 3 years. This time we did not sell the cars as both were less than 2 years old. I left one with our boys in PA, the other I left for my nephew to use in CA. He had just moved from Canada to join Yahoo for an internship of 4 months. Same age as my boys, he took very good care of it and left it all detailed and oil changed etc at my friends house when he returned. Well, my nephew got a full time job at Yahoo this year and I gave him the car to use again until he had his CA license and some credit history AND saved up some cash to buy a car. I included him in my insurance and he was paying me $150 to cover that and for using the car. Unfortunately he was involved in a bizarre crash recently when the car ahead of him on the freeway broke an axle and both cars were totaled.
The insurance is paying me a very fair amount, probably more than what I would have gotten if I sold the car last year myself. After paying off the bank loan I will have about $9000 left over. I shall be saving my payments  and the insurance for the next year (if I had the car to keep). My nephew will pay me the deductible for the insurance. Is that an even deal for me? Or should I be asking for more since our whole idea was to own a car at the end of the bank loan? BTW the car had only 28000 miles on it in 3 years now.

Thanks for all your insights.

UPDATE: On a side note, the adjuster got this weird mileage of 45000+ for my car and I of course questioned it. Says "oh, the car is too smashed up to get a reading off the odometer, so we went by an Oil Change Sticker that we found on the windscreen." Apparently the sticker said next oil change in Oct 2011 at 45200 miles! I don't know who or how that number came up becos the last oil change was at 19000 miles. I had it Smog tested in Mar 2012 and it was then 21700 miles. So, instead of being here on CafeMom, I have been going back and forth trying to get it corrected. The amount the insurance is offering depends on the mileage

by on Nov. 23, 2012 at 2:49 PM
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Replies (1-10):
suzeebloch
by Ronna on Nov. 23, 2012 at 3:12 PM

I'm not sure I am following this - "about $9000 left over"  - does this mean you still OWE $9000 or have a surplus of $9000 cash?  that's why I am not following your "is that an even deal for me?" 

CoeyG
by on Nov. 23, 2012 at 3:23 PM


Quoting suzeebloch:

I'm not sure I am following this - "about $9000 left over"  - does this mean you still OWE $9000 or have a surplus of $9000 cash?  that's why I am not following your "is that an even deal for me?" 

From the way I read it it sounds as if she will have $9,000 after all is said and done.  But yes OP I feel nephew should pay the deductible, the car, if not the accident was his responsiblity.  

suzeebloch
by Ronna on Nov. 23, 2012 at 3:56 PM
1 mom liked this

So save the $9000 plus the deductible, plus the payments you would have been making until the end of the term (minus the $150 the nephew was paying).  Then purchase a car of the same year, make and model.  I bet you would still have money left over and then you would "own a car at the end of the bank term"

Cindy18
by Platinum Member on Nov. 23, 2012 at 4:07 PM
I'm confused. If you have $9,000 in your pocket, why are you making him pay the deductible?
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amylulu1
by Amy on Nov. 23, 2012 at 4:28 PM

I'm wondering why there is even a deductible to pay since he was not "at fault".   Did the other car not have insurance, therefore your insurance had to handle it?  Or did they decide he was "at fault" (due to following too close to avoid the collision)?

Also, who would you be asking for more from?  Your nephew or the insurance company?  I do understand the reasoning for having him pay the deductible.  Had the car been sitting in your garage, it would not have incurred any damage.  By driving the car, he was accepting responsibility for anything that happened with it while in his care.  However, I think that him paying you the deductible is fair and asking for more from him would not be fair.  Just my humble opinion!

Sue1605
by Bronze Member on Nov. 23, 2012 at 7:08 PM

Since he rear-ended the other car he was deemed "at fault", so my insurance is the one paying. My nephew was aware of the $500 deductible and offered to pay it himself. Seems fair for me to accept it too since the insurance took it out of the amount they are offering me.

My brother is the one I basically had the deal with so he asked whether he should do more.  It was primarily the inexperience of both the drivers involved and it might just have been one of our two sons, so I am thankful that no one got hurt and am not asking for any more.

Thank you for your opinion - I value it.

Quoting amylulu1:

I'm wondering why there is even a deductible to pay since he was not "at fault".   Did the other car not have insurance, therefore your insurance had to handle it?  Or did they decide he was "at fault" (due to following too close to avoid the collision)?

Also, who would you be asking for more from?  Your nephew or the insurance company?  I do understand the reasoning for having him pay the deductible.  Had the car been sitting in your garage, it would not have incurred any damage.  By driving the car, he was accepting responsibility for anything that happened with it while in his care.  However, I think that him paying you the deductible is fair and asking for more from him would not be fair.  Just my humble opinion!


Sue1605
by Bronze Member on Nov. 23, 2012 at 7:11 PM

Yes, that is how I see it. Unfortunately there is a difference in opinion with my other half, he doesn't believe in buying ANY car second-hand. I think it is fortunate that we don't need to buy a car right now.

Thank you!

Quoting suzeebloch:

So save the $9000 plus the deductible, plus the payments you would have been making until the end of the term (minus the $150 the nephew was paying).  Then purchase a car of the same year, make and model.  I bet you would still have money left over and then you would "own a car at the end of the bank term"


Sue1605
by Bronze Member on Nov. 23, 2012 at 7:15 PM

That is becos the insurance put a value to the car and then reduced it by the deductible amount. I may end up with $9000+ now but no car when I need it at the end of next year. So the money will go towards a replacement.

Quoting Cindy18:

I'm confused. If you have $9,000 in your pocket, why are you making him pay the deductible?


Sue1605
by Bronze Member on Nov. 23, 2012 at 7:20 PM

Thank you, you put it so well.

I never had a car "totaled" before, so I needed some more perspectives....

Quoting CoeyG:


Quoting suzeebloch:

I'm not sure I am following this - "about $9000 left over"  - does this mean you still OWE $9000 or have a surplus of $9000 cash?  that's why I am not following your "is that an even deal for me?" 

From the way I read it it sounds as if she will have $9,000 after all is said and done.  But yes OP I feel nephew should pay the deductible, the car, if not the accident was his responsiblity.  


EireLass
by Gold Member on Nov. 23, 2012 at 8:42 PM

If I were you, I'd bank the $9000, accept the $500 and bank that as well. Whatever you car payment was, continue to put that much in savings each month too, then when necessary...when you come back to the US....pay cash for a car.

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