Extensive hail damage

[Spook]

This on GoAuto today. Helps to visualise the damage I suppose.

Dealers face damage bill in the millions after hail smashes car stocks in Victoria
8 March 2010

By RON HAMMERTON

DOZENS of Melbourne car dealers are counting the cost of Saturday’s massive hailstorm which damaged hundreds of new and used cars on forecourts across the eastern suburbs.

The damage bill to cars alone is expected to run into millions of dollars, with dealers already signaling plans to hold “hail damage” sales at discounts of up to $15,000 to clear away the mess.

Hail stones as big as tennis balls dented panels and smashed windows as the storm – a remnant of the same tropical system that inundated areas of Queensland and New South Wales last week – cut a swathe across the middle of the Melbourne metropolitan area in what has been described as a one-in-100-year hail storm.

One of the worst-hit areas was the outer eastern suburb of Ferntree Gully, where the largest hail scored a bull’s-eye on about 12 dealerships lined up in a popular car shopping strip on Burwood Highway.

In scenes reminiscent of Sydney’s Parramatta Rd disaster some years ago, almost every vehicle parked in the open suffered some damage. Broken rear windows also let torrential rain flow into the cars, compounding the problem.

Toyota dealer Gavin Werner, of Graham Werner Toyota, told the Herald Sun that only 40 or 50 of his stock of 230 new cars and 110 used cars had escaped damage in the storm.

Mr Werner, who valued his stock at $8 million, said he had watched helplessly from the showroom on Saturday afternoon as the hail hammered the cars, some of which he believed would have to be written off.

He said the dealership had been preparing for a grand opening of its new Burwood Highway facility.

“Now we are going to have a hail sale instead of a grand opening,” he was quoted as saying.

Thousands of private cars were also pummeled, showing evidence of glass damage and dimpled panels over a wide area, from Nunawading to Belgrave in the Dandenong Ranges.

In inner areas of the city, more damage was caused when dozens of cars were trapped in flooded streets. In many cases, the hail was so thick on the ground that it blocked storm water drains. Shredded leaves brought down by the hail also contributed to the problem.

Some of the more minor hail damage to car panels will be repaired using suction techniques, but others hit by the biggest hail stones are being assessed to see if they are worth repairing.

Unlike many car dealers in the northern states where hard lessons have been learned about hail damage, few Melbourne dealers have hail netting to protect vehicles stored in the open air, as hail in the southern state is rarely sufficiently big to cause panel damage.

Most manufacturers, however, pay to store wholesale new-vehicle stocks under protective netting at storage facilities such as ManheimFowles and Prixcar, just in case.

[Spook]

Hope you get the car written-off Nicandlance. I had gone through AAMI for smash repairs and hail damage before, and in that instance, the repair was well done.

I was just in Melbourne a couple of weeks ago, and had a Jetta as a hire car. Glad we missed this hailstorm or we would have to fork out the ridiculous $$$ excess.

[Dubya]

Thanks everyone for your help.....

When they send someone out to assess the damage I will be letting them know (politely of course), that I would prefer for them to write it off.
I'm hoping that doing that and selling it at auction will be more viable to them (weighed up against the cost of repair).

If they decide to repair it, (and considering it's only 4 weeks old), I will be absolutely pedantic about the finish, and am prepared to send it back again and again if the paint finish and colour is not as it was before this happened. (Or if there are rattles, bog or other rubbish going on that weren't there before).

I'm not looking forward to what lies ahead if I have to go down that track.... I'd much rather wait 6 months for a replacement

Really sorry to hear your upsetting news - I was caught up in your excitement and anticipation for your new car too!

Looking ahead however, your approach is right, but to confirm and set out some more steps and options:

- try and get on the assessor's good side, as I am sure you are intending to and will do;

- express your concern about having such a new car turned into a much less valuable (ie hail-damaged) vehicle (however this is economic loss and not what MV insurance policies cover; they cover damage, but convey the "vibe" of what is going down;

- if AAMI refuses to write it off and replace it, don't take "no" for an answer without doing the maths yourself - ie find out the cost to AAMI of repairing it, what AAMI might get at auction (the market will be flooded) and see what it will cost AAMI to put you in a new TSI (eg $32k - $15,000 salvage = $17k vs say, $13k in repairs).

So, say it was a $4k difference - put pressure on AAMI not to have a most dissatisfied customer instead of a delighted customer for the sake of, in this example, $4k difference in claim cost. Use any examples of family and friends who have policies with AAMI or other policies that you have or have had with AAMI (eg long-standing/loyal customer).

If this does not work, as a last resort, try and negotiate a deal by offering to contribute a portion (say 20% to start) of the difference between the two options. Escalate to the regional manger (sales) if necessary. The claims manager will be motivated to drive claims costs down.

This may not be an option for you but you really have to explore all options if you are gong to come out of this in reasonable shape.

Bear in mind too that your car will be off the road for 6 weeks minimum - maybe a lot longer as there will be a backlog of repairs.

Presuming AAMI elects to repair the car (my 2yo V40 was extensively damaged and repaired after Sydney's 1999 event and the more valuable the car the less likely a write-off I am afraid):

- call the top repairers and find out how such damage to Golfs is repaired and what method is best;

- ask the assessor how such damage will be repaired and insist on the best approach;

- ditto with the actual repairer;

- only agree to leave the car if the repair time is acceptable and the repairer agrees to provide a rental/loan car if they miss their deadline

- get the arrangement in writing. This will ensure they do not take your car too soon - it is not intended to get you a loaner!

- inspect the work in progress regularly to confirm that it is being repaired as agreed (also in writing).

I hope you can get your way with AAMI - - - they sound like sharks who deserve all your no-doubt-considerable charms can extract!

Good luck - and PM me if AAMI is not cooperative upfront.

[nicandlance]

AAMI want to send out someone to replace the windscreen so I can drive the car around until it's assessed.

Not sure whether getting the new window in before the assessment will hamper my chances of having it written off (after they have gone to the expense of putting a new window in).
Is it worth holding off and waiting till someone comes out to look at it, or won't it make any difference? (I guess they have to have a window in it to sell it at auction anyway......)

And thanks Dubya for all that info... I will definitely use all those tips! Wish I had you (or someone who can roll all this stuff off the tongue like you) here to do the talking for me!!

[Dubya]

AAMI want to send out someone to replace the windscreen so I can drive the car around until it's assessed.

Not sure whether getting the new window in before the assessment will hamper my chances of having it written off (after they have gone to the expense of putting a new window in).
Is it worth holding off and waiting till someone comes out to look at it, or won't it make any difference? (I guess they have to have a window in it to sell it at auction anyway......)

And thanks Dubya for all that info... I will definitely use all those tips! Wish I had you (or someone who can roll all this stuff off the tongue like you) here to do the talking for me!!

You're most welcome, Nic (further suggestions below).

An assessor could be a long time coming and if the 'screen tilts it one way over the other (not likely) you can negotiate.

[G-rig]

just make sure its a genuine VW windscreen.

[nicandlance]

When I spoke to the windscreen company, that was the first thing I told them (that I'd need a genuine vw screen). Didn't seem to be an issue.

This whole thing makes me feel ill

[Dubya]

AAMI want to send out someone to replace the windscreen so I can drive the car around until it's assessed.

Not sure whether getting the new window in before the assessment will hamper my chances of having it written off (after they have gone to the expense of putting a new window in).
Is it worth holding off and waiting till someone comes out to look at it, or won't it make any difference? (I guess they have to have a window in it to sell it at auction anyway......)

And thanks Dubya for all that info... I will definitely use all those tips! Wish I had you (or someone who can roll all this stuff off the tongue like you) here to do the talking for me!!

AAMI will insist on repairing the TSI unless (A) Replacement cost - (B) Salvage (ie trade in value) is less than (C) Repair cost.

So you want to minimise A and maximise B and C. So question C (and the quality and suitability of the proposed repair) if the figure AAMI comes up for C is a lot lower than what you have been quoted separately.

I would talk to my dealer and ask for their suggestions on how you might dispose of your hail-damaged TSI and what special deal they might do in the circumstances on a replacement. If you can establish a lower replacement price for a new TSI than AAMI can get, keep it up your sleeve as it may help you bridge the gap between changeover cost and repair cost.

Getting on well with the claims assessor/loss adjuster could be key to knowing what numbers AAMI is working off - if you see their assumed replacement cost is higher than the screaming deal your dealer might do this could present an opportunity. If they are being overly conservative on salavage value, consider what opportunities this presents.

While it is entirely possible no wholesaler will be prepared to offer anything for a hail-damaged car until the market settles down, or will seriously low-ball it, it is worth exploring this option as prices offered now may be higher than are being attained at auction later on.

Your other option if AAMI does not come to the party is to take a cheque for the repair cost and manage the process yourself. In this case you would need to know you were getting a more than adequate amount for repairs. If sufficient, it might provide you the option of selling your TSI yourself with hail damage and using the repair cost to cover the difference. This would be a tall order of course as the the discount at which HD cars sell should be some multiple of the expected repair cost.

Also, if the car is financed, the financier has an insurable interest and could well expect any cheque to go to them to pay down your loan to reflect the diminished value of their security (your TSI) or insist the car be repaired. Their interests could limit hamper your options and hamper your maneuverability.

I guess the bottom line is get all of the facts, from several sourcesand explore every avenue and option - even (especially) the ones not presented by AAMI as options.

It is essential that you have a selling price or repair cost for your TSI locked in, in writing, in a binding agreement, before you do anything that is not straight up and down (eg taking a cheque from AAMI) unless uncertainty about these numbers is a risk you can afford to take. You can be more certain of course, from information on this forum etc, about what you can expect to pay for a replacement TSI.

[nicandlance]

OMG.... my head is spinning! , but thanks for the advice - I will email the salesman that sold me my car and see what he has to say.

AAMI have called me.... I have to go to Preston which (for those of you who know the suburb I live in), is nowhere NEAR me!
A few people I have spoken to have all said their cars are getting repaired. Some of the jobs being done are scaring the hell out of me.... there are going to be shonky operators doing hellishly shonky jobs!

I'm feeling less and less confident by the day about the possibility of getting my car written off, and more and more depressed by the day. Not looking forward to Sunday - hope I get an assessor who wants to help me out and do what's right.... Maybe I should wear something LOW cut??!!

[Swallowtail]

OMG.... my head is spinning! , but thanks for the advice - I will email the salesman that sold me my car and see what he has to say.

AAMI have called me.... I have to go to Preston which (for those of you who know the suburb I live in), is nowhere NEAR me!
A few people I have spoken to have all said their cars are getting repaired. Some of the jobs being done are scaring the hell out of me.... there are going to be shonky operators doing hellishly shonky jobs!

I'm feeling less and less confident by the day about the possibility of getting my car written off, and more and more depressed by the day. Not looking forward to Sunday - hope I get an assessor who wants to help me out and do what's right.... Maybe I should wear something LOW cut??!!

Hope you get it sorted out Nic... it's a bugger of a thing to happen

Oh and by the way if you go in wearing low cut make sure you post pics so we can advise whether it's suitable or not...

EDIT - oh, unless it's Lance wearing low cut....