Ever wondered what happens to storm affected vehicles?

By Matt Brogan | March 17th, 2010

Following the recent wild weather experienced up and down Australia’s east coast, thousands of vehicle owners have found themselves with storm, water and hail damaged vehicles. Ever wondered what happens to them all?

After the insurance process is done and dusted, most of the damaged vehicles are sold at public auction. A high proportion of them are still drivable, can be re-registered, and in some instances, can even be repaired without trace.

ManheimFowles provide ‘catastrophe management’ services to the Australian insurance industry and count many of the country’s top insurers among their customers. As such, ManheimFowles will be holding multiple ‘Public Mega Storm Affected Vehicle Auctions’ to sell thousands of vehicles which have been written off due to storm damage.

The massive auctions offer a great chance for members of the public to pick up a bargain and most vehicles are detailed prior to sale.

Other storm affected vehicles that are not drivable are also sold at auction and their condition is clearly indicated for customers interested in buying these cars.

Auctions will be held at the following locations:

Sydney & Melbourne, March 23
Brisbane, March 24
Melbourne, April 9

If you’d like more information on the cars up for grabs, times and locations of the auctions, visit www.manheimfowles.com.au

Fenno

Be aware though that Repairs might be “without a trace” but the manufacturers are usually told and the warranties voided. Its very much a case of buyer beware.
Valet Dabess

well damn i’d buy one just for a bush basher and race my mates on their private property or something
matt

Keep in mind they will always be classed as a repaired write off and most dealers will not trade that car in and most consumers would not buy a repaired write off (i wouldn’t) so good luck when you need to sell it. Fowles must be trying to clear unwanted stock so they flicked Caradvice this little story.
TonyB

And try and get insurance on any of these cars.
D

A lot of dealers seem to still be selling their damaged cars. Last Friday’s CarsGuide was full of ads for the ‘Hail Sales’ from various dealerships.
ohreally

Getting insurance will be fun, once you mention repaired write off

I hope people opt for the agreed value rather than the market value.

I think many will be purchased by backyard panel beaters, who will then on sell to unsuspecting victims, who wont know its a repaired write off. Then they will have a fun conversation with the insurance companies
“james”

my folks bought a “hail damaged” hilux about 8 years ago for about $19,000 or maybe even less, it was a two door aluminium tray type. Never had an issue with insurance, and ended up selling it about two years ago for $16g!

If it is hail damage, i don’t think you will have an issue insuring the vehicle.

JML

When it is a repairable write-off that is a different story. Your mum’s Hilux was likely just damaged, not a write-off.

UMWAHT

there wouldn’t happen to be a Porsche Turbo in there somewhere would there?

Minnow

Had a look a few weeks ago, there was a 370Z and Porsche Cayenne turbo. Theres some pretty fancy cars in the mix.

svd

During the eighties there was a huge hailstorm around the Aurburn area in Sydney or was it late seventies. Anyhow this created an industry of vynl roofs on vehicles. Many of the vehicles had the roof covered to hide the dents with vynl. Unfortunately many of these roofs were not covered properly which resulted in bubles in the hot sun from entrapped air. The cure was to prick the bubbles which resulted in a moisture trap which rusted the roofs.

vid_ghost

Why did this sound like poping a zit to me either way i liked your story hehe

Kiasu

I used to work for AAMI insurance and I can tell you that they don’t cover “Hail” or “Rust” damage on vehicles. Unless they have changed which I doubt it.

Dale

I’m insured by AAMI and had experienced hail damage in 2008. They repaired the car. I was hoping it’d be a write off, but even with a repair bill of $9K, they still opted to repair it.

Selurs

As someone who’s premiums will go up to help pay for all these people who get brand new cars just ’cause they were hailed on, I’d rather see the insurance companies FIX the cars, rather than write them off and sell them. As it is not an accident situation, the vehicle is still structurally sound, only the exterior is bruised, and in most cases can be fixed. While I feel sorry for people who’s cars have been damaged, I’d rather not help pay for them to get new ones as long as they’re still drivable!

Gavin

As much as you dont like this, it actually will help you save money. Its pretty obvious your not too sure how the system works, so here goes

The cost of repairing your vehicle is $8,000.
The ACV of your vehicle is $10,000.
The estimated salvage value is $3,000.
Your vehicle would be a writeoff in this example. It would cost more to fix your vehicle ($8,000) than to pay you the ACV ($10,000) and recover some of the costs by selling it as salvage ($3,000).

Hope this helps you understand. It actually saves the insurance companies money in some cases by writing off cars.

Chris

But now you have 2 cars on the road instead of 1. The environment pays.
Lisa

Disregarding all your dollar values, some people cannot let go of their car because they do not have the money to buy another one. The insurance payout does not cover the remainder of the finance. Their really is no option at all, except to drive off a cliff, then their wont be a problem at all ever again. Except for those poor souls that are left behind to clean up the mess and contact remaining relatives. So no there is no other option but to keep the car.

Lynne

Just be very aware when opting to keep a salvaged vehicle instead of getting a write off payout. All salvaged vehicles have their registration immediately cancelled if they are declared a repairable write off. So if you opt to keep the car and receive a lesser payment, you have to get it roadworthied. That means a RWC and a VIV. A VIV certificate involves going over your car with a fine toothed comb and making sure the car is in the same condition as brand new, so often, it will have to be totally repaired and more often than not, includes hail damage repairs. It could turn out costly and on top of that, it is often uninsurable. I’ve just been through all this, and i hope someone can inform me otherwise as i’d like to keep my car, but it just doesn’t seem a good risk to take.

Matthew

Our van was written off by the insurers in the Dec 2008 hailstorms in Sydney and we opted to keep the van (mechanically fine) and they paid us the balance between payout and salvage value. So I have the same car with some dents and $8K in my pocket. But you do need a letter from the insurer to take to the RTA or else the RTA will automatically cancel your rego. The insurer knew all about this and provided the letter without hassle. Of course now our van can only be insured for third party insurance.

Davo

Melbourne had its large hail event.I cannot remember seeing anything like it before.
I heeded the warnings,stayed home with car garaged.
Have seen the prestige hail damaged vehicles at a well exposed locations in yards.Near my workplace,German brand with three letters.They are all there with their dents,still with hefty prices displayed.$80,$90K or more.
Does the industry depreciate them by 50% or more or do they just try to repair them then attempt to sell them as perfect?
If so it is not only the backyarders that one needs to be wary of.
Brigid

I have a good car that I was planning to keep for another 4-5 years.

My insurance company is writing it off, after hail damage from the storm in Melbourne, and that is a huge inconvenience for me at this stage.

They say there is 10k worth of repairs but are paying me out 21k??
It doesn’t seem logical. Why would they not just repair it?

The car is in perfect condition, only the shell is hail marked.
Have I any right to request it be fixed?
Jade

Could someone tell me if it is true that if I buy my hail damaged car back from AAMI I have 28 days to have it fixed as new or Vic Roads will not approve a road worthy?

Sharon

Yes Jade I am in the same boat as you, car was damaged in hail storm, insurer wants to write it off, if I want to purchase it back at auction I will have to fix all the dents before vicroads will re-register it…..it sucks…but have done the research and now have to decide whether to withdraw my claim and continue to drive my car with dents or to let them take it and write it off and give me market value for my car and try to find another one……market value isnt much in my case……cant decide what to do.

Lisa

I have a similar situation to Jade above. My car was badly damaged during the hail storm, the assessor stated is would be a write off. I said I wanted to keep the car as I still owe $11,000 to the finance company. He said it would cost at least $15,000 to repair, the cars Pay out value, he states is $8,600 and the settlement value would be $5,556, which does not cover what is still owing on the car. I have taken it to 2 repairers already and they guestimated between $8,000 and $10,000 to repair it, but were too busy to do an official quote. Redback.com values the car at between $7,900 – $9,600. I have considered cancelling the claim through the insurance company but it would effect the policy of the vehicle, I would have to change to Third Party insurance. According to the finance company I am required to have fully comp. insurance. I cannot afford to let them write off my car, I don’t have any money to buy another car and also pay off the fincance company the $6,000 still remaining on the finance. I really don’t have any option I need to keep my car, I need it to get to work as public transport is attrocious where I live. I am up the proverbial creek without a paddle! Does anyone have any advice? I’ve even thaught about take it to current affair or a talk back radio show.

Boris

Lisa says: “I still owe $11,000 to the finance company. He said it would cost at least $15,000 to repair, the cars Pay out value, he states is $8,600 and the settlement value would be $5,556, which does not cover what is still owing on the car.”

Excuse my ignorance, but I don’t understand these numbers. If you take out finance, then you are required to insure the car for over the finance value, therefore you should get back well over $11,000. So you let them write it off, then use the difference to buy the cheapest car on the market. Say, buy another write-off (at auction) which is in better shape. You will have to ride a crappy car for while until you can afford something better. In my view, it is never a good idea to take out finance on depreciating goods, car including, but you can do it again, if you like.

Maybe I said something stupid?

Boris

Lisa says: “I still owe $11,000 to the finance company. He said it would cost at least $15,000 to repair, the cars Pay out value, he states is $8,600 and the settlement value would be $5,556, which does not cover what is still owing on the car.”

Excuse my ignorance, but I don’t understand these numbers. If you take out finance, then you are required to insure the car for over the finance value, therefore you should get back well over $11,000. So you let them write it off, then use the difference to buy the cheapest car on the market. Say, buy another write-off (at auction) which is in better shape. You will have to ride a crappy car for while until you can afford something better. In my view, it is never a good idea to take out finance on depreciating goods, car including, but you can do it again, if you like.

Maybe I said something stupid?
http://www.brainrap.com Michael

My understanding from the VICROADS website if you keep your car as a repairable wriut-off due to hail damage the registration will not be immediately canceled and it doesn’t need to be repaired to keep it registered. However you must provide a RWC and have a satisfactory VIV ($400+) inspection before 31 Dec 2010 in order for registration to continue after that date.

That raises the question of whether you can get insurance of any type for that period and in fact for the long-term. I don’t imagine the company that wrote it off will continue even third-party property insurance. So does anyone know which companies might be interested? I had heard that JustCar might do it.

Boris

Michael, HBF tells my car will still be fully insured with them – but conditions apply. Check FAQ on their web site. Interesting to know what are the conditions.