Theoretical problem.

[Knorton]

After a close call by someone pulling out! this crossed my mind? I have purchased a Yaris Cross on the 3rd of Feb this year (A/W delivery) and my dealer gave a guaranteed trade in price that appears to be above book trade. So if my present car (Up GTi) was written off by a 3rd party and insurance was involved, would the insurers  be liable to meet the price that I have in writing from my Toyota dealer?

[FROSTYBALLS]

No.

[YarisHybrid2016]

4 minutes ago, Knorton said:

After a close call by someone pulling out! this crossed my mind? I have purchased a Yaris Cross on the 3rd of Feb this year (A/W delivery) and my dealer gave a guaranteed trade in price that appears to be above book trade. So if my present car (Up GTi) was written off by a 3rd party and insurance was involved, would the insurers  be liable to meet the price that I have in writing from my Toyota dealer?

No. They will go by "the book figure" (usually Glass's Guide or similar). You can try and negotiate, but don't hold your breath.

Do what you can to look after it between now and trade-in day.

[Hybrid21]

Hi Kevin, I don't think the insurance company would need to honour the dealer trade in price as this has been negotiated using criteria only the dealer can use.

You wouldn't really expect them to 🙂

[FROSTYBALLS]

Part exchange value and market value (the price an Insurer would value the car at) are two different valuations.

Market value (the insurer's valuation) would be what the car is actually worth within the market place.

Part exchange value is what a dealer would allow against the sale of another car - be it new or used. Within this one has to factor in considerations such as how keen the dealer is to get the sale as regards monthly targets, how long a car may have been with the dealer, what the demand is for the car being bought, etc, etc. 

Insurers aren't interested in or obliged, either legally or otherwise, to pay a part exchange value that may be offered by a dealer to achieve a sale. 

Similarly one won't get retail value for a car that has been written off, as the retail value includes an element of profit for the dealer, which the insurer won't pay.

[Cyker]

No, but you can use it and other, similar spec and mileage, examples from their Used section and e.g. Autotrader as evidence they're under-valuing it to try and get the insurance company to up their payout. Never accept their first offer.

[Knorton]

Thanks people. Your thoughts are pretty much in line with what I thought they would do! As Cyker says I would never accept the 1st offer anyway.

[Bob66]

You would be lucky to even get book price from insurance company.

[TonyHSD]

Most if not all insurance companies will only offer trade in value when writing off a car, this is the lowest possible value of all 3 , trade in, part ex, market ( retail) value. As Cyker says, you need to argue and push for more, sometimes it will work but sometimes it won’t. , but you have to try unless the value is reasonable and you are happy with what you receive. 👍

[MikeB2]

On 4/10/2023 at 6:27 PM, Knorton said:

After a close call by someone pulling out! this crossed my mind? I have purchased a Yaris Cross on the 3rd of Feb this year (A/W delivery) and my dealer gave a guaranteed trade in price that appears to be above book trade. So if my present car (Up GTi) was written off by a 3rd party and insurance was involved, would the insurers  be liable to meet the price that I have in writing from my Toyota dealer?

I read your post with some interest. I was also offered a "guaranteed trade in price" back in December last year way above the book price on condition that I ordered a new car. I thought at the time it was a no brainer to refuse so placed an order for a new YC having only having my current YC for 3 weeks. On Tuesday of this week the dealer contacted me to come in to sign the agreement for the new car, however when the paperwork was shown to me there was a difference of nearly £800 less in the trade in price. I queried this and was told that the trade in price and the repayment amount was locked in at the time of order. This figure was based on the "guaranteed" price  less the outstanding balance on finance at that time. I have paid back over a £1000 from the original settlement figure so I thought (wrongly) that the equity would be higher. After making a complaint to the dealers head office I was told that I had probably misunderstood the "guaranteed" price as they could not hold that price for 5-6 months and they would have to go on the market value at the time of signing the agreement. I think this is mis-selling on the part of the dealer but they dispute this and said they could not allow me any more in the part exchange price that had been "locked in". They said I was still getting a good deal but if I had known all this I would not have placed a new order. The so called "guaranteed price" is not worth the paper it is written on. Please all owners that are contacted by a dealer saying your car is worth X amount if you order a new car beware!

[RonYarisX]

Above is true, YOUR insurer will only pay out the market value of the car.

The elephant in the room tho is the OP said someone pulled out.

If it's a non-fault claim, that's to say it's the other parties fault, then it's very likely you'd be able to claim the difference between the pay out from your insuance and the agreed price from the dealer back from the 3rd parties insurance as compensation.

You shouldn't be placed out-of-pocket if the accident was caused by another party.

Of course that's assuming the other driver had insurance cover !

 

[RonYarisX]

6 hours ago, MikeB2 said:

The so called "guaranteed price" is not worth the paper it is written on. Please all owners that are contacted by a dealer saying your car is worth X amount if you order a new car beware!

I used to trade cars in many moons ago but that all stopped when the auction sites started up ( such as WeWantAnyCar.com ).

My tip is never trade a car against the other - treat the selling and buying as two seperate transactions.

I could give pages of examples over the years but here's the craziest. I negotiate hard so I'm confident I get near the dealer's best price.

1: Dealer A gave me changeover figure.

2: I found it was cheaper to buy the new car and then sell the old car to a broker.

3: The broker giving the best price happened to be the chain that dealer A belonged to.

4: When selling the car I was told to take it to any of their dealers. I took it back to dealer A.

So, buying the same new car from the same dealer and giving them my car in return, just as I would have done if I px'd, it saved me £1500.

Dealer A couldn't believe it. He said said their group buying service was a completely different operation with different profit margins.