Car Insurance avoidance - HELP! - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Circa89 · 10-09-2020, 01:15 PM

Thank God for Teeneagers constantly throwing a wrench into my life plans.
- Daughter saved up for a car with her part time job. THe test was put on hold for 6 months due to Covid, got her license finally last week. Well 1 week to the day she hit a parked car and totalled ( written off) both her car and the car parked on the side of the road.

The car she hit was a 2004 Nissan sentra worth approx 2000-3000. The fine gentlemen said he was willing to settle.

What is the best way to do this? Do i buy the car from him for his asking price and then scrap it? Do i just give him the cash ( with a notarized letter) and he can keep the car?

any tips for me as I have never been in an accident and this is such foreign ground to me.

Thanks in advance

TorqueDog · 10-09-2020, 01:25 PM

Have him write up a bill of sale, you both sign it, and you are the proud new owner of a 2004 Nissan Sentra parts car. Just like as though you are buying a car privately.

You then dismantle the car and sell all the salvagable parts on the internet and scrap the rest, hopefully recouping some if not all of the money you paid for the car.

Ducay · 10-09-2020, 03:42 PM

Assuming you both agree on a $ price, just make sure you document everything.

Easiest & cleanest would be if you just buy the car as Torque mentioned. Slightly more complicated if the other party wants to keep the car since then you just have to make sure the documentation is well done and doesn't allow any wiggle room for him to come back with any further recourse (e.g. Say he didn't initially realize XYZ piece was damaged or as damaged as he thought and wants more).

Is there a particular reason to avoid going insurance? It might not hurt to look into it, and I believe the laws are such that you can't get dinged for calling and discussing the situation. It will only impact her rates if a claim is ultimately filed. If 2 cars were totaled, could be cheaper option even if her rates go up.

TorqueDog · 10-09-2020, 05:08 PM

I think Sentra guy is getting a steal of a deal if Circa89 is paying $2,000-3,000. If the owner were to have taken it somewhere to trade it in pre-collision, the dealer would probably have started trade negotiations with "so how much fuel is in the tank?".

llwhiteoutll · 10-09-2020, 05:30 PM

Quote:

Originally Posted by TorqueDog

I think Sentra guy is getting a steal of a deal if Circa89 is paying $2,000-3,000. If the owner were to have taken it somewhere to trade it in pre-collision, the dealer would probably have started trade negotiations with "so how much fuel is in the tank?".

Circa89 is getting the best deal of it stays off insurance. $2000-$3000 is less of a hit that insurance would deliver if they found out. Sentra guy would be smart to tack a premium onto the settlement knowing that.

calgarywinning · 10-09-2020, 05:43 PM

Who would want the job of parting out a Sentra? Keeping it off insurance claim is great. I'd say at 3k, there is a premium in there already. So Bill of Sale for 3k, then sell it back to him for $1 or have it towed to the wrecking yard.

Circa89 · 10-09-2020, 06:59 PM

Thanks

I have agreed on a $2500 settlement and as mentioned I will be the proud owner of a 2004 sentra that needs about $10K in repairs. I still see it as a bargain as opposed to an at fault insurance claim. My other child hit a car in his first 3 months of driving. His premiums rose from about $2k a year to almost $6k a year. Needless to say he is no longer driving.

thanks for the advice

CaptainCrunch · 10-09-2020, 07:10 PM

If you don't want to part it, I think the Kidney Foundation takes wrecks off of your hands and you get a nice tax receipt for it, plus it helps them because they part it out.

Fuzz · 10-09-2020, 07:19 PM

You get about $100 tax receipt, It's worth it if you hate a hassle. Otherwise maybe the thing still has some good tires, or someone needs a full parts car for $500 or something

Reaper · 10-09-2020, 10:46 PM

Quote:

Originally Posted by Fuzz

You get about $100 tax receipt, It's worth it if you hate a hassle. Otherwise maybe the thing still has some good tires, or someone needs a full parts car for $500 or something

The receipt can vary a lot based on the interchangeability of parts from your vehicle to others. When I donated my car I expected a receipt for $100 but ended up with more after they mailed out an adjusted tax deduction for $2200. It turns out there were a lot of parts from my car that were also used in the Chrysler minivans; specifically engine and transmission. YMMV.

Fuzz · 10-10-2020, 07:00 AM

Quote:

Originally Posted by Reaper

The receipt can vary a lot based on the interchangeability of parts from your vehicle to others. When I donated my car I expected a receipt for $100 but ended up with more after they mailed out an adjusted tax deduction for $2200. It turns out there were a lot of parts from my car that were also used in the Chrysler minivans; specifically engine and transmission. YMMV.

Ah, OK, I mostly thought they just scraped them. My 1989 Mazda MPV must not have had many parts left that weren't rusted to dust.

OutOfTheCube · 10-10-2020, 07:40 AM

How did you write off your car without going through insurance?

Canadianman · 10-10-2020, 08:23 AM

Quote:

Originally Posted by OutOfTheCube

How did you write off your car without going through insurance?

" I DECLARE THIS CAR IS WRITTEN OFF!"

Seriously though, just take it to a junker.

Locke · 10-10-2020, 10:57 AM

Buy another 2004 Nissan Sentra and use the two vehicles to keep one running forever.

TorqueDog · 10-10-2020, 01:41 PM

Quote:

Originally Posted by calgarywinning

Who would want the job of parting out a Sentra? Keeping it off insurance claim is great. I'd say at 3k, there is a premium in there already. So Bill of Sale for 3k, then sell it back to him for $1 or have it towed to the wrecking yard.

Who wouldn't? Taking things apart without the expectation of fitting them together again is fun. It's trying to get them put back together coherently that becomes the challenge.