Take The Money or Get My Holden Astra Fixed?

witsa on 10/03/2020 - 20:54
Last edited 10/03/2020 - 21:02 by 1 other user

Got recently caught in a hail storm and received some hail damage to my car.

The damage is cosmetic and I've been driving around without any problems.

My insurance company wants to fix it. I rang them today and asked them if instead of fixing it, if they can just give me the money for the repairs.

They said they could give me $8500 instead.

Trying to figure out whether it's best to get it fixed or keep the money.

The car is a 2017 Holden Astra RSV Hatchback. I like the car, and I wasn't planning on selling it anytime soon. Likely to keep it for at least 5+ years more. Probably much longer.

Damage is only cosmetic.

From a quick look on carsales, it looks like other cars with that model is worth about $20k. However, cars don't usually go for what they're advertised for plus Holden did just go under, so I reckon that's probably going to affect the resale value.

On the one hand, having the $8.5k isn't bad - I'm getting a 3rd off the car just cause it's got a few dents.

On the other, I'm sure the insurance companies have deals with repairers so if i was to get it fixed myself, it would likely cost more than 8.5k. It might make it difficult to get comprehensive insurance (although technically if I already have 8.5k off, then maybe I might be okay with 3rd party). It might be more difficult to offload later on (although as mentioned, it'll be 5+ years away and it might not be worth as much by then regardless of whether it's damaged).

What should I do? What would you do?

Poll Options

  • 4
    Get insurance to fix the car
  • 65
    Take the $8.5k
Automotive

Comments

  • Mechz on 10/03/2020 - 21:01
    +1

    I think you can still get full comprehensive coverage but it will have the hail damage already listed so you won't be able to claim that if it gets hit again. But normal accidents should be fine.

    • witsa on 10/03/2020 - 21:07

      yeah i think that's what they said. But they do want to assess it, so hopefully. I imagine not all insurers will allow this so might make at least the insurance more expensive.

      • BinaryPirate on 11/03/2020 - 19:20
        -2

        Take the money and buy the vehicle back from the insurer as 'salvage'. The car's a write-off so they don't charge you much to buy it back. My memory is hazy but from $8,500 you should be able to get a cheque for ~$5-6k & keep your car.
        Drive it for another 3yrs then sell it for $3k to a uni student.

    • witsa on 12/03/2020 - 23:00

      Funny, I just did a quote on a few insurance companies.

      I can't find any that actually ask for existing damage to a car - almost like the insurance doesn't matter?

  • RM on 10/03/2020 - 21:02

    If you take the money…whats the value of your (hail damaged) car?

    • witsa on 10/03/2020 - 21:05

      i honestly have no idea… would you buy a hail damaged car if it was 8k cheaper and nothing else was wrong with it?

      i also think a lot of things is in play. Firstly, there's a ton of cars that's got hail damage so that affects the markets.

      Secondly, as mentioned, Holden has closed down so I imagine people aren't too keen on buying that brand.

      • RM on 10/03/2020 - 21:09

        Yeah…that the catch(es)…Holden and hail damage.

        Personally, I would not buy hail damaged car (which is not fixed). I did have a captive and we got it repaired when it was hail damaged. Were also able to sell it at comparable market price a couple of years ago.

        I would recommend fixing it. Pretty sure insurance company sees some benefit in offering $8500. You will need to anyways get it repaired (most likely) whenever you do decide to sell it … and that could be more.

        • witsa on 10/03/2020 - 21:13
          +4

          i figured in 5 years, the car will be 8 years old - it'll probably be worth like $5000ish - getting to that price range where most people will be gladly willing to save money in exchange for a bit of cosmetic damage.

          • RM on 10/03/2020 - 21:15

            @witsa: That will be only 5 more years away from Holden supporting its vehicles….that is if they do keep their promise.

            Under 3 years old car…would still recommend to fix it under insurance.

          • donga100 on 10/03/2020 - 21:26
            +2

            @witsa: They are selling NEW for $26,800 drive-away before negotiation. If you are keeping it for another 5 years I think $8.5k cash for some hail damage is a good deal.

          • serpserpserp on 11/03/2020 - 10:31

            @witsa:

            i figured in 5 years, the car will be 8 years old - it'll probably be worth like $5000ish

            With hail damage and being a Holden not sure it'll be even that much.

  • nubzy on 10/03/2020 - 21:09
    +2

    It's only a 3 year old car. Get it fixed under insurance, you don't want to be driving around in a hail damaged car for the next 5+ years and then have a nightmare of a time trying to sell it.

    • HighAndDry on 11/03/2020 - 11:40

      In 5 years time OP will have an 8 year old Holden Astra with no local manufacturer support.

      $8,500 would be close if not more than the price of that car.

  • brendanm on 10/03/2020 - 21:22

    Take the money, then get a paintless debt removal person to fix it. Then you'll have a fixed car, and cash.

  • crentist on 10/03/2020 - 21:23
    +2

    On the other, I'm sure the insurance companies have deals with repairers so if i was to get it fixed myself, it would likely cost more than 8.5k.

    I wouldn't be too sure about this. Maybe with their own preferred mechanics who they bring a lot of business to, but if you brought the car to a mechanic of your own choice they would still pay for repairs. That mechanic might benefit from fluffing up repair costs a bit knowing that insurance will pay. Whereas if you negotiate with them and pay yourself they might be able to keep costs down a little bit more so you don't take your business somewhere else.
    Also that price might be based on brand new panel replacement, and you might be happy enough with a cheaper body repair.

    Or you might find that some mechanics simply quote less than others for whatever reason. eg I know someone who had a brand new car keyed up (it wasn't even an interesting car) and they had it entirely resprayed for under $1k, when a regular quote would be much more. Just got lucky with an honest mechanic.

    Doesn't hurt to ask around.

    • witsa on 10/03/2020 - 21:32

      huh, that's interesting, i never considered that.

      I just figured insurance companies would have that buying power to push down costs but I guess there's other factors.

  • ego22 on 10/03/2020 - 21:55
    +1

    what r u nuts?! take the mystery box!!

  • Tasmaniac on 10/03/2020 - 22:19
    +1

    Take the $8500 and invest.
    8500(1+0.10)^5 = $13,689

    Now compare the sales price of your car in 5 years to that of a car that's not damaged.

    I bet it's not a $13000 difference.

    • witsa on 10/03/2020 - 22:42
      +4

      what safe investment gives me a guaranteed 10% return?

      • Tasmaniac on 10/03/2020 - 23:25
        -1

        Well the S&P has averaged 9.8 for about 90 years.

        No where's going to give you a guaranteed return

        • TEER3X on 11/03/2020 - 11:35
          +2

          Current volatility multiplied by 5 years means OP is better off taking the lot to the blackjack table

        • gyrex on 11/03/2020 - 12:09

          Even an average stock market punter can see that we're heading head first into a major worldwide recession (even before the Wuhan bat soup virus hit). You'd have to have rocks in your head to be pumping cash into stocks at the moment.

  • Euphemistic on 10/03/2020 - 22:35

    I WANT my car to get hit by hail so I can do a deal with the insurance co and keep the car, get some cash and drive it with damage. I’d likely try to do some repairs myself on the cheap, like replace panels etc. difference is that my car is 12yo and a bit rough already. Some hail damage would be unlikely to drop the value by much. We had a ripper storm, with hail a couple of weeks ago, but alas, the hail was not big enough.

    Take the cash.

  • AdosHouse on 10/03/2020 - 22:42
    +1

    I'd take the money. Lets face it, you will have a hell of a time selling a Holden a few years down the track. So I personally would take the money, drive the car for years until it craps itself, and then buy another car.

  • apsilon on 11/03/2020 - 06:21

    Double check that if they pay you the money they're not listing it as a write off in which case registration will be cancelled and you won't be able to drive it. If that's all good then take the cash and keep driving it. If you're happy with the car drive it until it stops or you're sick of it. Holdens aren't going to have much resale in the coming years so may as well get full use from it.

  • wiipantz on 11/03/2020 - 09:24
    -1

    lol, Astra. Take what you can get tbh. Get rid of it and if you need a vehicle to commute there are options in that price bracket.

  • PAOK11 on 11/03/2020 - 09:31
    +2

    Start taking your car to repairers and get quotes to fix the car. You will find the repairs will cost significantly more than 8.5k. This happened to me recently, it's "business" I guess but no reason why you should accept it.

  • Bid Sniper on 11/03/2020 - 09:55
    +2

    ^ AS above get some quote to see if you're not bring ripped off.

    DIY dent repair using tools off ebay, rest cash in hand from a shop if it bothers you. Run it into the ground. Saves you lot of money in long run

  • wannagrababargain on 11/03/2020 - 10:10
    +1

    I think you are not going to be better off either way. The insurance calculation is probably pretty much on the money for your actual losses.

    I think you are being optimistic in how difficult it is to sell a damaged car, the potential customer base is tiny and generally ruthless.

    Most people who are actively out looking for a cheap hail damaged car are going to be looking during the immediate aftermath of a hail storm (ie now) not 5 years down the road.

  • slow on 11/03/2020 - 11:32

    If I was planning on keeping the car for a while and not too fussed about the damage, I would take the cash.
    Could do dome dodgy cheap repair if you like

    But depends on how badly you need the money and if you can do something useful with it (not just fritter it away)

  • TEER3X on 11/03/2020 - 11:36

    Take the cash and drive car into the ground. In 5 years you'd be able to buy the exact same car with that money.

    • AdosHouse on 11/03/2020 - 16:31

      I doubt you'd be able to buy another Holden in 5 years, LOL.

      But I suggested the same thing. Take the money, drive car into the ground, buy a new car.

Login or Join to leave a comment
Login Join