Talked to my insurance today and discovered what I feel is the answer to the age old question "Why do vehicles lose their value when you drive off the lot?"
So as an example:
Customer A comes into the dealership and buys a brand new 2011 Sonata with 20 miles on it. The customer registers the vehicle, insures the vehicle with "Replacement Cost Coverage". Drives the car 10 miles and says... this sucks (not likely but, this customer is a nasty one.
) He takes it back to the dealership and complains wildly that the car will not do. The nice dealership says ok and refunds his money. (Also not likely, but this is a real nice dealership; I think. )
Customer B comes into the dealership and falls in love with the EXACT same 2011 Sonata that now has only 30 miles on it. Customer B agrees to buy the vehicle assuming it is a new vehicle. (Basically it is and isn't in this case.) Here in Canada the dealership must supply a NVIS (New Vehicle) Form to the Insurance people of Customer B to prove it is a new vehicle and has never been registered. Unfortunately, in this case they can not, therefore the car is used. Customer B can no longer apply for the "Replacement Cost Coverage" from his insurance. But he buys it anyway at the new vehicle price. (We assume this customer is real nice too.)
So Customer B drives out of the lot, gets creamed by a large Dickie Dee Ice Cream truck and the vehicle is now written off. But Customer B did not have Replacement Cost Coverage so his $30,000 he paid out, he gets back only say $25,000. So he now loses $5,000 for the 200 feet he drove the vehicle.
So as you can see, Customer A never should have gotten all the money back for that "used" vehicle.
Just a thought... Would this make it insurance related issue, because they won't do the Replacement Cost Coverage for the second owner?
So as an example:
Customer A comes into the dealership and buys a brand new 2011 Sonata with 20 miles on it. The customer registers the vehicle, insures the vehicle with "Replacement Cost Coverage". Drives the car 10 miles and says... this sucks (not likely but, this customer is a nasty one.
) He takes it back to the dealership and complains wildly that the car will not do. The nice dealership says ok and refunds his money. (Also not likely, but this is a real nice dealership; I think. )Customer B comes into the dealership and falls in love with the EXACT same 2011 Sonata that now has only 30 miles on it. Customer B agrees to buy the vehicle assuming it is a new vehicle. (Basically it is and isn't in this case.) Here in Canada the dealership must supply a NVIS (New Vehicle) Form to the Insurance people of Customer B to prove it is a new vehicle and has never been registered. Unfortunately, in this case they can not, therefore the car is used. Customer B can no longer apply for the "Replacement Cost Coverage" from his insurance. But he buys it anyway at the new vehicle price. (We assume this customer is real nice too.)
So Customer B drives out of the lot, gets creamed by a large Dickie Dee Ice Cream truck and the vehicle is now written off. But Customer B did not have Replacement Cost Coverage so his $30,000 he paid out, he gets back only say $25,000. So he now loses $5,000 for the 200 feet he drove the vehicle.
So as you can see, Customer A never should have gotten all the money back for that "used" vehicle.
Just a thought... Would this make it insurance related issue, because they won't do the Replacement Cost Coverage for the second owner?
