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Market Value


JamesD

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I need a realistic market value for my car for insurance purposes, can any of you give me some ideas, spec as follows:

2.0L Zetec Westfield SEiW (yellow) on a '03 registration

- Jenvey Throttle Bodies, DTA ECU (dyno at 179bhp on standard engine)

- Baffled Dunnell shallow sump

- Reconditioned MT75 gearbox

- Reconditioned 3:62 Diff

- Aeroscreen

- Westfield Stainless Exhaust

- Fully covered sports seats

- 13" Revolution alloys (powdercoated black) with new Bridgestone RE720

- only done 1200 miles since build

TIA

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For insurance purposes I'd say it's probably more to be honest - build cost plus time / labour.  How much would a factory built car in that spec cost ?  That's the number I'd be using.

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Post title says 'Market Value' ie how much you'd get if it were sold now. The insurance company may not pay out for a new (re)build.

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Post title says 'Market Value' ie how much you'd get if it were sold now. The insurance company may not pay out for a new (re)build.

Yep, I think you are right the insurers could argue I may never get £15K for it even if I sold it straight after it was built.

I am goning to try it though... ;)

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But isn't the point of them looking at an insurance valuation to see how much it would cost to replace the car in the event of a total loss ??   In other words, how much it would cost you to replace the car, not how much you'd get if you tried to sell it ??

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how much it would cost you to replace the car, not how much you'd get if you tried to sell it

Too much time in the sun, dude. That's the same thing.  :)  :p  :)

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But it's not though is it.

If you build a car for, say, 15K and try to sell it the next day you just won't get 15K for it.  You might struggle to get 12-13K.  So if, the day after SVA, it was crushed by a piano falling from a plane flying overhead then it would cost you another 15K to replace the car you've just lost.  You shouldn't have to make do with a second hand car costing 12-13K because that's not what you lost - you just lost a brand new car and the insurance should pay out accordingly.

Now, given a little time and some mileage I agree that some depreciation would creep in, but I would still go for a higher valuation to give some negotiation room with the insurance company.

My car is a 1996 SEiW but I know how much it would cost to rebuild it to the same spec if it was ever written off and that's how much I valued my car at when asked by MSM.

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i think nick is right! it might be worth getting a quote from the factory for a car built by them to your spec! as that would be the cost to replace it!

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I work in the marine industry and often get involved in settling insurance claims and valuing boats for finance companies who are lending against them.

"Current market value" is the important phrase - this is what you could reasonably be expected to achieve if you were to sell the car.  This IS the same as it would cost to replace the car (give or take a few %). - If you can sell it for a particular figure you can buy an identical one for that same figure.

Insurance policies indemnify (compensate) you for your loss.  If your car was worth £10,000 and was stolen your loss would be £10,000 - not the £15,000 you would have to pay the factory to have a new one built up.

Still, having said all that an agreed value that is high enough to allow you to easily find and purchase a similar car as yours would be a good idea.

Just my 2p

Duncan

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This IS the same as it would cost to replace the car (give or take a few %). - If you can sell it for a particular figure you can buy an identical one for that same figure.

That's what I meant  :)

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