I'm looking to upgrade my 14 year old car, a 99 wrx and purchase a brand new vehicle. Been eyeing the market for a few months and a recent small hail storm hit Perth and apparently a few dealerships are having significant discounts. The vehicles are "peppered" obviously I will need to check in person to see the extant of damage. I have called one of them and they can give me a genuine 10k discount off a car which sells for 40k driveway after mild haggling which for me is significant. This is the car: http://www.carsales.com.au/nearnew/details/Subaru-WRX-2014/A…, which can be had for 30k. It could cause me problems down the track but my "Ozbargainer" side is telling me genuine savings can be had for superficial damage, because the dealerships have insurance and will receive brand new models if able to liquidate these ones while insurance pays the difference. Should I stay away and forget about or give it a shot?
Discounted Brand New Car- Hail Damaged
Comments
Yes the actual one is the same just midly peppered. Even if the damage is very mild is it "safe" to buy it or will it cause more headaches than its worth? Obviously I will check and see, dealer told me the damage was cosmetic and mainly confined to roof and bonnet
Will you have issues with getting insurance?
http://www.choosi.com.au/car-insurance/helpful-stuff/guides/…
As someone in the industry I can tell you there is no way my company will offer comprehensive cover on a hail damage vehicle.
I know of people who have tried insuring and not disclosing the pre-existing damage only to have a claim rejected IN FULL later on (they had to pay the other person they hit too - yikes!)
If you can get it fixed for <$10K then you hve a good as new car but hail is notoriously difficult to repair over the thin areas of the roof etc (boot and bonnet are ok). Roof repairs look good when done and get wavy and pitted quickly later on - under insurance you can ask for it to be re-repaired but good luck if you get it repaired privately
Depends on whether you tend to build sentimental attachments to your car.
If so, then id suggest skip the offer and buy an undamaged one.
If you think about it $10,000 isn't that much money at the end of the day. Let's say you decide to sell it down the track in around 10 years or so, the WRX is a common car, there are heaps on the second hand market so people will really avoid the hail-damaged car like the plague, you're probably going to be pricing it at around a $5,000 discount to the market value.
So at the end of the day, you're not really saving $10,000 like you think, you're only saving $5,000. If you're only saving $5,000 then I would say it's not really worth saving. It's not just about money, think about it in terms of cost-benefit. What else are you going to do with $5,000 and is it absolutely necessary you have $5,000 more in your bank account. Also think about driving the car day in day out.
Whilst it might not bother you at the start because of the "ooooh, new car!" feeling, think about whether it will be something you will resent in the future when you notice it every time you get in your car. Of course, it's all up to you and how important that price difference is.
How much do you think a 10yr old WRX will sell for? 2004 models are $5000 - $8000 at the moment and the standard discount for hail damage is around 25% but becomes less important in older second hand cars due to most of them having some sort of cosmetic damage by that time anyway. Even if we used your example of $5000 difference, you should really look at it as $5000 + 10yrs accrued interest which would be $7454 based on todays historically low interest rates.
Okay, $5000 is exaggerated, but main point I was trying to make is that it's all about cost-benefit and what it's worth to OP.
The car is also marked as Hail Damaged even if you do the body repairs, trade in or sale later will be low.
$10000 off rrp isnt massive, go to another dealer and see how cheap you can get an undamaged one for.The $40k is drive-away but the cars-sales one is not so add a few more thousand on that price.
Personally, for some so cosmetic, a 10k saving is massive and definitely worth buying if it suits ur preference of saving money and not caring about looks.
You only problem is finding car insurance covering you, coz ur car isnt worth insurancing. U will probably only get 3rd party cover.
But personally, I'd do it, I don't even believe in insurance anyway. Each to their own though.
Why not check out the car, take some photos and see how much it would cost to repair the damage?
If it's cheap to fix go for it, no one would know about it later when you are re-selling.
If the buyer does a REVS check they will see it is a repairable write off.
Not worth it IMHO, firstly you can only get 3rd party insurance and won't get as much when selling it.Also just think if you pay $30K for the car and you can only get 3rd party insurance.
What would you do if you accidentally crash the car and write it off or someone without insurance (cloudy) crashes into you car, (3rd party will only cover 5k of your car) then you also have the hassle of chasing the other person up in court to get your money to repair the car.Even if someone else with insurance actually crashes into you, you car will only be covered for the market value.
An insurance companies valuation of your written off hail damaged car might be a lot less than 30k, especially after 6 months. They might only say it is worth 10k.Just a few things to think about.
Really? Hmm… I assumed a REVS record would only exist after the car is registered.
+1
Is this car a write off? It's still brand new off the lot, no insurance company has written it off?
If you intend keeping the car for say 10 yrs then it may not be such a big problem.
If you tried to sell it after a short time then you would possibly loose what you have saved so it would be just like a regular depreciation. Ie: resale price would be market value less say $10k.Confirm with your intended insurer about any hiccups there. They do vary on hail damage.
I'd certainly go for the 10K off, or more if possible and put the cost on a credit card(s).
Having a new card is responsibility and worry that any tiny scratch spoils it. Call a few insurance companies and then get the online quotes.
If the car yard agreed to $10000 off then you still have room to haggle further. You are the one doing them a favour. If resale value is of concern l would buy a 1 to 2 year old car with no damage rather than the damaged one.
simple answer…. to save MORE than $10K and get a car without major cosmestic damage, just buy one second hand. car prices drop ridiculous amounts after the first year. i never see the appeal in spending $X,XXXs just for the shiny new car feeling.
As above, better off buying a 1yo car that is the same price as your brand new damaged car.
Also doubt youd be able to insure it with pre-existing damage.
Sample photo only not actual vehicle?