What Are The Considerations for Buying a Dealer New Car with Hail Damage?

Hello Ozbargainers,

Firstly I’m a long time lurker on the site and have gained many a bargain thanks to you guys!

I have found a car through a local dealer that is being sold at a discount for being hail damaged, I have inspected the car and can’t see a mark on it. Am I being a bit green and not seeing the catch here?
The dealer has informed me that there is no paint warranty, but all other warranties stay intact. The car is a 2018 Hyundai i30 SR listed at $24950.

Any advise from you guys would be appreciated. Thanks

Comments

  • +17 votes

    Check with your insurer whether it can be insured too. They may limit it to third party property as the vehicle is already damaged.

    Personally I can't see any problem in buying a car with superficial panel damage if the mechanicals are all good, especially if it comes at a discount - insurance issues aside.

    •  

      Thanks for that. I will call and check it out

      •  

        Hi, we recently bought a hail damaged car, the dealer we got the car from gave us free insurance for like a year. Also check how much it would cost to get it fixed even if you can't see any damage then ask the dealer to price accordingly. As the buyer the dealer might want the car off the lot and give it to you for an even better price better price

  • +10 votes

    less concern about carpark dings.

    • +8 votes

      Or passion prints on the bonnet.

    • +7 votes

      That is why I make a conscious effort in choosing to buy cars with a bit of carpark ding and/or scratches. Price must be adjusted accordingly of course, so I save $$, plus I dont worry then, when that perfect paint gets scratched. Unfortunately it is bound to happen to most cars, where a driver will scratch or dint your vehicle in a carpark and not own up to it or pay for damage. When my cars, already imperfect, gets a bit of an extra scratch or ding.. Im like… mehhh, whats another scratch, im not goin to fuss and spend $$ to fix it every time I get a small scratch or ding.

      • -5 votes

        These are some of the reasons why I consider car ownership a burden, and choose uber/ola/taxify/gocatch instead.

        • +3 votes

          And u lose the freedom of going where u want to go when u want it to happen. However good those ride sharing services are, they’ll never be as on time as ur car sitting in ur garage waiting for u mate.

        • +1 vote

          @berry580: True, my first trip with Uber, we got an Uber from Hobart to an animal park there, only to find when we wanted to return, there was no cars due to the out of the way location. Had to ring a taxi driver from hobart, to drive out to zoo, waited like 40 minutes, and paid like double the cost of the trip there, to return via taxi. Lucky to even get a taxi out there.
          Own car offers much more freedom to go to any location, and return any time.
          Its a nice feeling having both car and my lil campervan full of fuel, ready to go anywhere, any time.

        • +3 votes

          @berry580: I'm in the inner suburbs, so things end up faster in most cases due to time wasted parking.
          But you're right about losing some freedom to just jump in my car and drive anywhere, anytime.

          Realistically though, these cases would be the exception. I haven't run into any yet, and am enjoying the benefits of:
          - Not paying for (insurance, parking, petrol, repairs/maintenance, speeding and parking fines (I'm being honest), depreciation costs
          - Reduced stress (driving, people (profanity) my car in the carpark, blocked driveways, finding parking spots, worrying about parking fines)
          - Time Saved (filling up with petrol, parking, going to the mechanic, researching insurance companies yearly for the best deal)

          And yeah, I'm trading all of that for loss of ability to spontaneously drive off somewhere far away.

        • +1 vote

          @idonotknowwhy: > loss of ability to spontaneously drive off somewhere far away

          And over time you would adapt to this. Also makes you plan ahead, a bit likely buying as a seasoned OZB'er.

          Good points you make.

      • +1 vote

        I would love a new car with 7 year warranty that's been trashed with hail.
        Not being able to get comprehensive insurance will save another bundle - in any other scenario I'd feel irresponsible not being fully insured.

        •  

          Why couldn’t you get full Comp?
          I am pretty sure you can, it is disclosed upon sign up

        •  

          @taoz: I don't know tbh. It's only the impression I got here, that if you answer that question to the negative, you'd get a "sorry, we can't insure you"??

        •  

          @taoz: usually insurers will ask about pre existing damage and value of the damage in terms of repair costs. If it passes a certain limit, they can refuse to sell you full comprehensive until the damage is repaired. Not reporting and not repairing the damage can violate the duty of disclosure that you need to agree on to purchase full comprehensive insurance.

          Honestly I recommend getting full comprehensive if you can, especially if you are buying the car on a loan. That way if it does get written off, you're not stuck paying out a larger proportion of the remainder of the loan for a vehicle you no longer have. I say larger proportion as the market value of the car often depreciates faster than value of the loan so writing off doesn't always cover the full cost of the loan.

  • +8 votes

    being sold at a discount for being hail damaged, I have inspected the car and can’t see a mark on it.

    At least ask the dealer to point out where the hail damage is. They're not going to discount the car for nothing!

    • +4 votes

      They said that they can’t see it. And that they think it was part of a lot that was in a storm and they just marked them all as hail damaged. That really doesn’t sound right to me

      • +83 votes

        When a car salesman is talking, he's lying.
        Get everything in writing.

      • +1 vote

        They said that they can’t see it. And that they think it was part of a lot that was in a storm and they just marked them all as hail damaged.

        I so would not believe that at all!

        How much cheaper is it than a non hail-damaged version? It's probably worth negotiating on brand new one and then comparing the final prices, then work out whether it's worth the difference.

        •  

          The car goes for $31666 new

        •  

          @Harvs15:

          Did the dealer give you that price? (Hope he hasn't bumped it up to make it look like there's a huge price difference).

          I did a quick search and it's listed with a starting price of $28,950. Obviously that doesn't include the on-roads, etc and any other options/accessories.

          (https://www.carsguide.com.au/hyundai/i30/price/2018/sr)

          Guess my point is, to make sure you're comparing "like" for "like" prices and then work out if it's worth it. The extra few thousand means different things to different people. For myself, I'd be happy to pay the extra knowing I have a brand new car.

        •  

          @bobbified: that's the price I get when I put the cars specs into Hyundai's calculator online. Thanks for all your help

        • +2 votes

          @Harvs15: The Hyundai calculator would give you the maximum price for that car with that specs. Like RRP price. A new car is highly negotiable. If you aren't comfortable with negotiating to push for better price, then try to get a friend or family member to go negotiate better price for you. Dealerships can actually sell below costs sometimes, due to bonus payments that get for selling, say 50, of a certain model etc. They might be down to selling the last 2/50 for that months bonus, and need to clear that last 2 for $50,000 bonus for company, and a $10,000 rolex. They will ALWAYS try to get as much as they can from you, so you need to have a tough negotiator with you.

        • +7 votes

          @Harvs15: Most car brands, you need to haggle at least 10% of RRP. You can haggle more for german cars, Audi you could get 20%. I managed to haggle 12% of on-road RRP for brand new mazda 3 and 15% off used Merc C250. You also need to think about the resale value of hail-damaged car.

        •  

          @rave75: Even more for unpopular colours or combos. Large dscounts for Volvo, Land Rover, etc are out there also.

        • +1 vote

          @ozzpete: Thank you for the advise, I’m not a strong negotiator. It’s good to have an understanding of how it works

        • +2 votes

          @BartholemewH: Thanks to you too

        •  

          @Harvs15: Your welcome. Also, you can go to different dealerships. ie. 1 Hyundai dealership might outdo the other as a price beat. Also, if you go to a couple of dealerships (or call on phone) you might get a better idea of what they are actually worth (sale price, not RRP) . If second dealerships offers same car for considerably less as their 'lowest price, best offer' , then you would know the first one is charging more than they should.

  •  

    it has been repaired obviously they won't sell it with dings everywhere

    • +12 votes

      Yes they do. In Queensland this is a regular occurrence

    • +5 votes

      mazda springwood took a brand new mazda 3 we had put a sizable deposit on into the nearby BMW dealership to get a panel fixed and resprayed after they lent it out to a customer as a courtesy car during a service and they dinged it. we only found out after harassing them for missing the agreed delivery date.

      nothing is beyond these cretins.

  •  

    Assuming all the insides are working great, then it's just a matter of how much you value the car's looks and the feeling you get driving a car hail damaged.

    If you think that is worth the $2k (or whatever value) in savings, then go for it.

    I personally wouldn't unless it was like 70% RRP ($25k car selling for $17.5k). But that's just my cutoff point due to my preferences.

  • +1 vote

    Is it a 2017 MY18 or 2018 MY18 ? and is that the DA price?

  • +2 votes

    you also have to consider when it time to sell this car. the hail damage is going to put off alot of buyers, unless of course you have a low asking price..

    • +1 vote

      If the damage is minor it shouldn’t make much difference at resale time.

      •  

        There is no visible damage, the dealer said they can't see it either.

        • +1 vote

          Hail/storm damaged always are cheaper.
          Is the car registered? Because if it is they will sell it to you as a used car not New.

        •  

          does the Vicroad register mention the damage?

        •  

          @godofpizza: they are selling it as a demo and I'm in WA, do they have a register?

        • +1 vote

          @Harvs15: not sure what Wa used but in Vic, hail damage write off or repairable write off are recorded against the register. Not should if claim via insurance would trigger this.

        •  

          @tuzii: Same with the demo models, because they would have a good amount of km on them, and some driven as daily drives for dealership staff.

        •  

          @godofpizza: it’s quite possible that a new car would not be written off for some hail damage. Couple of new panels and some paint might be all it costs to repair and it’s not going to add up to $ that mean they’d rather throw the car away.

  • +13 votes

    If there's no paint warranty then it has been repainted, which means the damage would have been bad enough that PDR was not an option, or most cost effective to bog and paint…

    salesman is full of shit

    • +2 votes

      This is an excellent answer and a good point. If it has been bogged up and repainted and the salesman is telling you the damage is so little that you can't see it then he is lying through his teeth. Avoid this place and move on, if it's too good to be true it probably is…

  • +1 vote

    Dealers can get hail damage repaired on the cheap.

    If they haven't, you need to consider why that might be!

    edit: wait, there's no hail damage visible and he's telling you there is?!

    •  

      they are advertising it as a hail damage car, however they can't see it or show me. so probably is a re-spray?

      • +1 vote

        That would make sense… regarding warranty. Logically 3rd party having repainted car aftet hail damage, would void any paint warranty from the manufacturer.

  •  

    That is a good price for an i30 SR. I thought I got a good price on an 2017 MY18 Elantra Elite for $22500.

    Visually inspect the car yourself, and if needed get a RACQ/RACV/NRMA/etc paint inspection done on it, if you are happy with the car and the price, just get it. Just means no warranty of paint.

    And yes good point above about checking with insurance first.

    •  

      That's a good price for the Elantra, I have seen the car and cant see the damage. Thanks for the advise on getting a paint inspection done on it

      • +1 vote

        No probs, a paint inspection will be able to check the paint depth of the paint. So if they have done any dodge respray, it will come up. If they have only had to do paintless dent pulling, the factory paint should be in good nick. As long as there are no cracks or webs in the paint it should be as good as new. But see what an inspector says.

  • +31 votes

    If it is listed hail damaged, then it was hail damaged - dealers don't sell bargain cars on the "chance" it was hit with hail.

    I would say it was damaged and repaired using paintless dent removal - nothing wrong with that, the technique is very effective. However, as it involves heating the damaged area and mechanically working out the damage with metal rods, there can be a change in the bonding of the paint to the underlying metal… but most likely there is no problem.

    To look for any remaining damage, print off an A4 page with thick black lines, about o.5cm wide and spaced 1.5cm apart. Hold the page so that you can see the reflection in the paint. Move around the panels you want to inspect - where there are slightly high or low spots you will see the reflections of the parallel lines will converge or diverge.

  •  

    I wonder if hail damaged vehicles get listed on the repairable write off register when the dealers claim on their insurance.

  • +2 votes

    This one?

    VIN number is incorrect on the listing, otherwise I'd run the PPSR for ya (just tried, and it can't find the car. Well, it does but it doesn't show that it hasn't been written off etc, which it should)

  • +8 votes

    I wouldnt
    We bought a ford focus that had minor hail damage that was repaired for bonnet and roof, and saved a $1k or 2 at the time
    But fast forward 5+ years down the track, both bonnet and roof started having clearcoat fails on those two surfaces whereas the others are fine

    Clearly the repairs were lower quality than the original paint job, so the car looks terrible compared to other cars of a similar age.

    12 years old now and the clearcoat on the roof is gone and the bonnet is patchy

    •  

      dont think theres much resale on a 12 year old ford focus bud

      • +1 vote

        paint started failing after maybe 5

        at this stage, we're just running it into the ground, but definitely looks way worse than cars of a similar age.

        •  

          U would expect clear coat failure on bonnet, roof and boot/hatch first.
          Mine failed after years of parking under the sun.

  • +2 votes

    I got a hail damaged car that was fixed, not a pock mark on it.

    Only damage I found was that the rear tweeter speakers weren't working. There may have been some other water damage but 5 years down the track there's nothing showing up.

    Finance was the biggest issue. I couldn't source my own car finance as because it was a repairable write off the car finance companies rejected it. I therefore had to take out a personal loan at a higher rate. But i did a bit of negotiating with the guy selling it and reduce the asking price by the additional interest I'd expect. (only I didn't finance the whole car and got it a lot cheaper with barely any difference.

    Insurance was no issue. The problem I had with insurance was that they would not insure for less than the market price set for the car even if it was repairable write off… I should have just burnt it then and pocketed $$$.

    Might have been a gamble but it paid off for me.

  •  

    I have previously bought a hail damaged dealer repaired vehicle.
    I got dealer to write on my contract of sale

    This car is not a written off / hail damaged repair.
    Never trust any word.
    Everything else was good about my ownership.

    showed me the minor scratches prior to sending to body shop.

    If the price is right go for it.

  • -1 vote

    Unless you can inspect in person, don’t do it.

  •  

    When I had a hail damaged vehicle I could only insurance for third party not comprehensive.

  • +1 vote

    I know comparing NSW to WA isnt exactly apples to apples, but on price alone it doesnt seem that competitive.

    The hail damaged one is 24990 excluding charges

    Then you have one in Sydney, demo, 10km going for 25888 Drive Away. (There's 4 more in NSW in the same ball park in terms of price)

    https://www.carsales.com.au/demo/details/Hyundai-i30-2017/OA...

    The descriptions are pretty sparse so unable to compare equipment. I guess i'm struggling to find what the savings is (but again, as i said, i can understand this is NSW vs WA)

  • +2 votes

    I got a hail damaged lancer that had 6000km on it. $11000. I've driven it for nearly a decade and never needed to take it to a mechanic. 10/10 would buy hail damaged again.

  • +1 vote

    hay just be careful. The dealer did mention that there is no paint warranty that means it is not original paint. I had a car similar situation where they repainted the certain part of the car(cheap job) and the paint peeled itself over a couple of months. I wouldn't mind buying if it is over 5gs but 24g is a lot for that car. You are gonna sell it eventually and you are gonna lose. Unless you are keeping it until it turned 250,000 kms

    • +1 vote

      this, if it was insurance job ( there would have a lifetime warranty) if the paint starts to peel in 5 or 10 years your going to be able to get it fixed. otherwise it's not going to be financially worth repairing a 10 year old car with bad paint job.

  •  

    Hail damage if the dealer claimed insurance will be in the ppsr . If it is you can assume up to 50% less trade in value. It would have had marks visible or it would have been repaired. Dealers do not lump none hail damage cars with others !!!!

    • +1 vote

      AFAIK the PPSR wont show any repaired damage that has not led to a written off status.

      https://www.ppsr.gov.au/updates-written-vehicle-information

      A vehicle is considered a repairable write-off if it has been assessed as being too costly to repair, but subject to state laws may be re-registered for road use if it has passed a vehicle safety and identity check.

      If the damage is not too costly to repair, it will be repaired an not considered written off, therefore won't show on the report. eg. It would be highly unlikely for a new car to be written off if it only needed a new bonnet and boot. That's only a few thousand in repairs, likely less than 10-20% of the value of the car.

  •  

    Hyundai are making pretty nice cars now that I've seen a few of their newer models

  •  

    Note that when you buy a hail-damaged car your anti-perforation warranty is void. All other warranties remain the same. The way some people get around this is to purchase paint protection through the dealer, which, whilst expensive, will provide up to 10 years paint warranty.

    Also, as mentioned above, an insurer is unlikely to insure the car comprehensively until the damage is repaired. The goods news for you is that it's likely to be eligible for Paintless Dent Removal (PDR) which is relatively cheap and quick.

  •  

    I bought a hail damaged car about 3 years ago. Worth it if you're not interested in what a car looks like and just want something reliable with modern safety features on the cheap. Especially if you don't intend to sell. I'll be passing this one onto my kid when he starts to drive.

    NRMA will comprehensive insure hail damaged cars but will not cover damage to hail affected panels. So if you crash make sure you write the car off or it catches on fire.

    Unrepaired damage
    If your vehicle had any unrepaired damage before an incident, then you may need
    to contribute to the repair costs. You need to do that when the unrepaired damage
    results in us having to repair more areas of your vehicle than:
    were affected by the incident, or
    we needed to replace.
    For example, your bonnet is only partly damaged in a crash and can be repaired.
    The repairer notices that the bonnet has unrepaired hail damage. If there wasn’t
    any hail damage, then we would only need to repair the damaged area of the
    bonnet. However because of the unrepaired hail damage, we must replace the
    whole bonnet. So, we will ask you to contribute to the cost of those repairs.

    •  

      Spot on. Plenty good deals around. A lot of hail damaged cars in south east melb, some have minor dents, but really who cares it not noticeable at distance and as with majority of cars the value declines all the time regardless

  •  

    We grabbed a good deal from a car yard for a hail-damaged vehicle. They fixed it up as part of the negotiations…

  •  

    DON'T BUY IT. Issues: Insurance, Finance, Resale, REVS/PPSR, Potential Future Paint Damage.

  •  

    It says sold on Car Sales, did OP purchase it?

  1. oscargamer on 16/04/2018 - 11:45
  2. singlemalt72 on 16/04/2018 - 15:28
  3. Euphemistic on 16/04/2018 - 11:26
  4. oscargamer on 16/04/2018 - 13:21
  5. Scrooge McDuck on 17/04/2018 - 02:08
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