My $1,900 Test Drive
10/29/14, 05:23 PM
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My $1,900 Test Drive
Longtime lurker, new poster here. Not sure what sub-forum this is appropriate for, so I figured I'd start here.
Yesterday afternoon, I stopped by a north Jersey Ford dealer (name being withheld for now) to test drive the new 2015 Mustang Ecoboost. Nice car, just a little wanting for power.
On my way back into the dealer lot, I nicked the edge of the curb, which left a ~ 1/2 inch scratch on the edge of the rim, and on the tire. The sales manager then promptly informed me I would be required to pay to replace both the tire and rim, and associated labor costs, which came to the tidy sum of $1,892! ($1,200 for a single 20" rim, $400 for the Pirelli summer tire, then the rest in labor).
Frankly, I'm not entirely sure what recourse I have in this situation. I held off on filing an insurance claim for the moment, since I would still need to pay the deductible (which is rather high, due to my older 2006 GT), and it would show up on the 2015's Carfax as an accident. The dealer also doesn't want to file an insurance claim for the same reason (high deductible + unwanted accident report). The dealer claims, since I was behind the wheel, I was liable, and they would sue me in small claims court if I don't pay.
I'm debating whether it's worth a protracted legal battle (along with widespread naming and shaming of this dealer), which I have no idea my odds of winning, or simply settling for a more reasonable amount.
Does anyone have any experience in this situation? I find it hard to believe I'm the first person to nick a rim on a test drive.
Yesterday afternoon, I stopped by a north Jersey Ford dealer (name being withheld for now) to test drive the new 2015 Mustang Ecoboost. Nice car, just a little wanting for power.
On my way back into the dealer lot, I nicked the edge of the curb, which left a ~ 1/2 inch scratch on the edge of the rim, and on the tire. The sales manager then promptly informed me I would be required to pay to replace both the tire and rim, and associated labor costs, which came to the tidy sum of $1,892! ($1,200 for a single 20" rim, $400 for the Pirelli summer tire, then the rest in labor).
Frankly, I'm not entirely sure what recourse I have in this situation. I held off on filing an insurance claim for the moment, since I would still need to pay the deductible (which is rather high, due to my older 2006 GT), and it would show up on the 2015's Carfax as an accident. The dealer also doesn't want to file an insurance claim for the same reason (high deductible + unwanted accident report). The dealer claims, since I was behind the wheel, I was liable, and they would sue me in small claims court if I don't pay.
I'm debating whether it's worth a protracted legal battle (along with widespread naming and shaming of this dealer), which I have no idea my odds of winning, or simply settling for a more reasonable amount.
Does anyone have any experience in this situation? I find it hard to believe I'm the first person to nick a rim on a test drive.
10/29/14, 05:34 PM
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Ouch, that blows. Sorry about your luck.
On the other hand you were driving, so I'm not sure what choice you have. I'd say that's what insurance is for, and if you choose not to use it than the rest is on you.
On the other hand you were driving, so I'm not sure what choice you have. I'd say that's what insurance is for, and if you choose not to use it than the rest is on you.
10/29/14, 05:45 PM
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10/29/14, 05:48 PM
#4
FR500 Member
That's an interesting claim. In my almost 35 years of auto insurance claims, I can't say I've personally run into that situation. The closest it seems to a coverage issue is this: if you rent a vehicle it serves as a temporary substitue vehicle and your policy would respond. But I don't see that as the case here obviously.
However, in NJ it is the car that is insured, not the driver, so the dealer is misinformed.
The dealer has coverage for this. In all liklelyhood you signed no waivers or hold harmless agreements....you probably just gave the dealer a copy of your DL and he handed over the keys. It appears to me that he assumed the risk.
Think of it this way....I lend you my car for 30 minutes, and you get into an accident. It is my insurance company, not yours, that responds.
My gut reaction is that the dealer's carrier handles this.
My advice is to contact a claims manager at your insurance company. Don't bother calling the agent....deal directly with the claims department.
I'd be curious to know who your carrier is....it might be the company from where I just retired here in NJ, or I might even know someone at your insurance company. Feel free to PM me.
Good luck.
However, in NJ it is the car that is insured, not the driver, so the dealer is misinformed.
The dealer has coverage for this. In all liklelyhood you signed no waivers or hold harmless agreements....you probably just gave the dealer a copy of your DL and he handed over the keys. It appears to me that he assumed the risk.
Think of it this way....I lend you my car for 30 minutes, and you get into an accident. It is my insurance company, not yours, that responds.
My gut reaction is that the dealer's carrier handles this.
My advice is to contact a claims manager at your insurance company. Don't bother calling the agent....deal directly with the claims department.
I'd be curious to know who your carrier is....it might be the company from where I just retired here in NJ, or I might even know someone at your insurance company. Feel free to PM me.
Good luck.
10/29/14, 06:26 PM
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That's an interesting claim. In my almost 35 years of auto insurance claims, I can't say I've personally run into that situation. The closest it seems to a coverage issue is this: if you rent a vehicle it serves as a temporary substitue vehicle and your policy would respond. But I don't see that as the case here obviously.
However, in NJ it is the car that is insured, not the driver, so the dealer is misinformed.
The dealer has coverage for this. In all liklelyhood you signed no waivers or hold harmless agreements....you probably just gave the dealer a copy of your DL and he handed over the keys. It appears to me that he assumed the risk.
Think of it this way....I lend you my car for 30 minutes, and you get into an accident. It is my insurance company, not yours, that responds.
My gut reaction is that the dealer's carrier handles this.
My advice is to contact a claims manager at your insurance company. Don't bother calling the agent....deal directly with the claims department.
I'd be curious to know who your carrier is....it might be the company from where I just retired here in NJ, or I might even know someone at your insurance company. Feel free to PM me.
Good luck.
However, in NJ it is the car that is insured, not the driver, so the dealer is misinformed.
The dealer has coverage for this. In all liklelyhood you signed no waivers or hold harmless agreements....you probably just gave the dealer a copy of your DL and he handed over the keys. It appears to me that he assumed the risk.
Think of it this way....I lend you my car for 30 minutes, and you get into an accident. It is my insurance company, not yours, that responds.
My gut reaction is that the dealer's carrier handles this.
My advice is to contact a claims manager at your insurance company. Don't bother calling the agent....deal directly with the claims department.
I'd be curious to know who your carrier is....it might be the company from where I just retired here in NJ, or I might even know someone at your insurance company. Feel free to PM me.
Good luck.
The issue is that, although the dealer does have insurance coverage, he doesn't believe his deductible would cover the cost of repair. Moreover, if he files a claim, it shows up on the vehicle's carfax as having been in an accident, which isn't ideal. Accordingly, he threatened to sue me in small claims court to recover the deductible if he had to go through his policy.
Start modding with wheels and tires!
10/29/14, 07:47 PM
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My dealer just got their first GT and it's already at the repair shop for three dents on the roof! They're having the dent less repair done to it then will sell it and the new owner will never know!
10/29/14, 09:02 PM
#11
Super Boss Lawman Member
it is my opinion that the dealership insurance is designated to cover this, as test drives are part of the general coverage, or should be. It's also highly improbable that he could win ANYTHING in small claims court, and would be scolded for wasting the courts time. Shame on him for being devious/hostile. In my opinion.
10/29/14, 09:07 PM
#13
Tasca Super Boss 429 Member
Dealer assumes liability after verifying your DL and passing you the keys. No different than if you were a 15 year old kid and went on a joy ride of public destruction. He assumed liability.
Don't let them scare you. Your name will be cursed for many moons to come but you're off the hook for the repairs.
Don't let them scare you. Your name will be cursed for many moons to come but you're off the hook for the repairs.
10/29/14, 09:09 PM
#14
In all liklelyhood you signed no waivers or hold harmless agreements....you probably just gave the dealer a copy of your DL and he handed over the keys. It appears to me that he assumed the risk.
Think of it this way....I lend you my car for 30 minutes, and you get into an accident. It is my insurance company, not yours, that responds.
Think of it this way....I lend you my car for 30 minutes, and you get into an accident. It is my insurance company, not yours, that responds.
If he wants to spit out some ridiculous number for damages expecting you to pay it, make him prove the actual damages in court. In court, you may win or you may lose. Even if you lose, you could probably make them disclose their actual wholesale cost for the rim and tire and get the labor excluded. That could save you several hundred right there, even if you lose in court.
He will probably go to court showing a full price sale to his sales dept from his own parts dept. That's just inter-dealership transfer. You can force him to disclose the actual cost from Ford to the dealership. That would be his actual damages. And I'm still not saying that you would lose.
Last edited by Boss 0960; 10/29/14 at 09:14 PM.
10/29/14, 09:34 PM
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Besides - are you sure it wasn't damaged before you drove it? Did you do a walk around and take pics? Or are you sure you dinged it?
A small claims threat is a 50/50 gamble for them too...
10/29/14, 09:39 PM
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It sounds like he wants to buy at dealer cost, charge you retail and profit doubly from this incident. Actually, he wants $292 to change a tire. That's ridiculous. Most tire shops will mount and balance a tire for free when you pay full retail. Every way you look at it, this sounds like a rip-off, taking advantage of an unfortunate circumstance.
This sounds like the key words in this entire incident. He assumed the risk or at the very least, his insurance company did. Screw them. Walk away until you actually hear from a lawyer or small claims court. It's worth the battle just to not let douchebags take advantage of you with impunity.
If he wants to spit out some ridiculous number for damages expecting you to pay it, make him prove the actual damages in court. In court, you may win or you may lose. Even if you lose, you could probably make them disclose their actual wholesale cost for the rim and tire and get the labor excluded. That could save you several hundred right there, even if you lose in court.
He will probably go to court showing a full price sale to his sales dept from his own parts dept. That's just inter-dealership transfer. You can force him to disclose the actual cost from Ford to the dealership. That would be his actual damages. And I'm still not saying that you would lose.
This sounds like the key words in this entire incident. He assumed the risk or at the very least, his insurance company did. Screw them. Walk away until you actually hear from a lawyer or small claims court. It's worth the battle just to not let douchebags take advantage of you with impunity.
If he wants to spit out some ridiculous number for damages expecting you to pay it, make him prove the actual damages in court. In court, you may win or you may lose. Even if you lose, you could probably make them disclose their actual wholesale cost for the rim and tire and get the labor excluded. That could save you several hundred right there, even if you lose in court.
He will probably go to court showing a full price sale to his sales dept from his own parts dept. That's just inter-dealership transfer. You can force him to disclose the actual cost from Ford to the dealership. That would be his actual damages. And I'm still not saying that you would lose.
I don't think it is worth the dealer's time to take you to small claims for that amount. That being said, there are some who will pinch every penny.
I also think you are being rooked because of an unfortunate circumstance. They let you drive it - it is a demo car. It is a USED car now. The dealers drive demos home at night and use them as personal vehicles. Much worse than this happens to demo cars.
10/29/14, 11:03 PM
#17
Legacy TMS Member
Tell the dealer to stuff it, and tell then you'll NEVER be back, and also TELL US THE DEALER so we can skip them too.
Dealers are hella insured, JUST for this reason, among others. And there is no way their cost on the parts is that much. They are trying to make money off the mistake.
Which to me is the coffin nail, and you should out them.
But that'd be just me and my obstinate opinion.
Dealers are hella insured, JUST for this reason, among others. And there is no way their cost on the parts is that much. They are trying to make money off the mistake.
Which to me is the coffin nail, and you should out them.
But that'd be just me and my obstinate opinion.
10/29/14, 11:44 PM
#18
GT Member
1. Dealer has insurance to cover this
2. Those prices are inflated beyond retail. Those wheels are not $1200 each. Those tires are not $400 each. Labor for Mounting a Tire to a Wheel and mounting the wheel to the car is $30 not $292.
3. Depending on the state, small claims court has a $2k limit anyway (or at least used to not long ago)
4. It is doubtful the dealer will pursue this in court. Even if they win, they still lose. As noted by others above, the actual costs will be revealed in court which will be far lower than the amount he quoted and their reputation will take a hit from taking a potential customer to court.
5. Even if their insurance goes after your insurance and you have to pay the deductible, it's bound to be $1k or less. Most deductibles are $500.
2. Those prices are inflated beyond retail. Those wheels are not $1200 each. Those tires are not $400 each. Labor for Mounting a Tire to a Wheel and mounting the wheel to the car is $30 not $292.
3. Depending on the state, small claims court has a $2k limit anyway (or at least used to not long ago)
4. It is doubtful the dealer will pursue this in court. Even if they win, they still lose. As noted by others above, the actual costs will be revealed in court which will be far lower than the amount he quoted and their reputation will take a hit from taking a potential customer to court.
5. Even if their insurance goes after your insurance and you have to pay the deductible, it's bound to be $1k or less. Most deductibles are $500.
Last edited by VIP1; 10/29/14 at 11:58 PM.
10/30/14, 12:37 AM
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Here is what the law says:
http://law.freeadvice.com/insurance_...st_driving.htm
"If You Cause the Test Drive Accident
If you are responsible for a car accident during a test drive, the dealership can try to hold you liable. Generally speaking, in these cases, your own car insurance policy would kick and pay for a test drive crash just as it would be if you got into an accident when driving a rental car. Make sure your car insurance policy includes coverage for accidents that happen when you are driving a rental car or are on a test drive."
http://law.freeadvice.com/insurance_...st_driving.htm
"If You Cause the Test Drive Accident
If you are responsible for a car accident during a test drive, the dealership can try to hold you liable. Generally speaking, in these cases, your own car insurance policy would kick and pay for a test drive crash just as it would be if you got into an accident when driving a rental car. Make sure your car insurance policy includes coverage for accidents that happen when you are driving a rental car or are on a test drive."
