Insurers Using Consumer Portal MyCarIsWorthLess.com For Diminished Value

February 16, 2011 –When the developers of MyCarIsWorthLess.com came up with the idea of an online diminished value calculator, it was for the purpose of helping consumers get fairly compensated after an insurance repair claim. To their surprise, some insurance companies found success using this tool to assist them with settlement.

Jim McBreen, an independent adjuster from Florida, was working on a claim for a 2009 Aston Martin for one of his insurance company clients. When the issue of diminished value arose, a supervisor at the insurance company suggested Jim check out MyCarIsWorthLess.com to arrive at a value. The diminished value for this $211,000 vehicle worked out to $38,955.

“The web site was very easy to use, inexpensive and gave me an instant value which makes settlement a lot faster” says McBreen. “I thought the value computed was very fair and realistic”.

Laura, a company adjuster for a Kansas insurer who asked not to be identified, ran a report and sent it to their policyholder who settled right away.

“It’s one more tool in our toolchest to help us do our jobs faster and make our lives easier” said Laura.

“Diminished value has previously been a challenge because it is very hard to quantify” claims Viraf Baliwalla, President of TheyWroteOffMyCar.com, the owner of the MyCarIsWorthLess.com website. “Further, insurers are experts in insurance, not vehicle pricing. So they have to rely on the policyholder to demonstrate the amount of their loss which can result in very exaggerated numbers”.

Joseph Troise, a professional independent appraiser from California, ran his own appraisal for a client’s 2010 Honda Odyssey and compared it to MyCarIsWorthLess.com’s online calculator.

“I was quite surprised at the accuracy of the calculation” said Troise. “It gives me one more independent, expert research source to support the value when I represent my clients”.

Some insurers claim that a vehicle does not sustain diminished value so long as it is repaired properly. “That is a completely unreasonable assumption” says Baliwalla who also has an auto dealer’s license. Baliwalla recently bought a 2009 Lexus ES350 from the auction. Two weeks prior, the same vehicle had run through the auction and sold for $31,000 to another dealer. There had been an accident on it which had not been disclosed. As per auction arbitration rules, the vehicle was returned. Two weeks later, it ran again. After disclosure, Baliwalla was able to buy it for $25,250 because of diminished value.

“Once a vehicle has a claim registered against it, the value of the vehicle drops substantially” claims Baliwalla.

TheyWroteOffMyCar.com is a helpline for consumers whose vehicles have been deemed a total loss by their insurance company. With the addition of MyCarIsWorthLess.com, they expand their offerings to repaired vehicles as well.

For media inquiries, contact Viraf Baliwalla at (866) 310-8701 x303 or email viraf@TheyWroteOffMyCar.com.

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February 16, 2011

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New Website Helps Consumers Calculate “Diminished Value” After Auto Insurance Claim

November 30, 2010 – Just in time for winter, TheyWroteOffMyCar.com Inc. announced today the launch of a new website called MyCarIsWorthLess.com (Worth – Less, not worthless) to help consumers calculate the reduced, or diminished, value of their vehicle after an insurance repair claim.

“Approximately 15% of vehicles on the road are involved in a vehicle damage claim annually” claims Viraf Baliwalla, President of TheyWroteOffMyCar.com. “ About 10% of those claims result in a total loss. But 90% are repaired and have a claim registered against their history and therefore incur ‘diminished value’ which amounts to billions of dollars nationwide annually.”

Imagine you’re driving along in your new car, minding your own business, and out of the blue someone rear-ends you. You take down their information, call the police, then your insurance company and take your car to the nearest bodyshop where it is repaired so well you can’t tell it was ever hit. The insurance company pays for the repair as well as your deductible, so you haven’t lost a cent. Or have you?

“Even if a vehicle is repaired properly by the insurance company, the vehicle still has an inherent decrease in value just because of a claim being registered against it” states Baliwalla. “Try to sell that car or trade it in and be ready for a rude awakening, anywhere from several hundred to several thousand dollars.“

It is not the insurance company’s responsibility to inform you of your eligibility for diminished value or to educate you on how it works. Plus, you have to be able to demonstrate that you have incurred the amount of loss you are claiming.

“Most people don’t know they are eligible to claim for diminished value and therefore don’t ask for it. Nor do they know how to calculate or demonstrate their loss” says Baliwalla.

And if you don’t ask for it, they don’t typically have to pay it. One of the challenges for both policyholder and insurer has been that both sides have a vested interest but neither have expertise in pricing vehicles. That’s where MyCarIsWorthLess.com comes in.

“This is the first completely neutral online tool that we know about designed by experts in both the car and insurance business that delivers a fair and reasonable result instantly” claims Baliwalla.

The credibility and science behind the numbers comes from two chief architects of the software that powers MyCarIsWorthLess.com. Together, they have 30+ years of expertise in vehicle buying and insurance auto appraisals.

The cost to generate an online diminished value report is $39, however members of the media can get a special Promo ID to evaluate it for free.

TheyWroteOffMyCar.com is a helpline for consumers whose vehicles have been deemed a total loss by their insurance company. With the addition of MyCarIsWorthLess.com, they expand their reach to repaired vehicles as well.

For further information or to obtain the media Promo ID, please call Viraf Baliwalla at (866) 249-5474 ext. 303, email to viraf@TheyWroteOffMyCar.com.

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February 16, 2011

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Automall Network Launches Easy Import Concierge Service For Mid and Luxury Car Buyers

February 9, 2011, Toronto, ON – According to Canada’s Registrar of Imported Vehicles (RIV), Canadians imported 158,603 vehicles from the US in 2010.

“That’s only a fraction of the Canadian population who would love to import a vehicle” claims Viraf Baliwalla, President of Automall Network. “However, there’s an even greater number of Canadians that are dissuaded due to the complexities of the importation process and the possibility of things going wrong”.

With the Easy Import Concierge Service, buyers arrange their best deal on any vehicle throughout North America directly with the seller and then hand over all the logistics to Automall Network.

For a fixed cost of $1,200 for vehicles being imported and $499 for vehicles already in Canada, the new service reviews the VIN history and manages and coordinates a comprehensive independent inspection prior to the buyer’s purchase commitment. If all goes well, transportation, paperwork, regulatory requirements, modifications and licensing are done to legally import and operate the vehicle in Canada. Buyers pay the dealer directly for the vehicle and pay Automall Network for the management fee and reimbursement of associated costs of inspection, freight, customs, taxes, etc. which they would incur anyway.

Buyers pay the seller upon a successful inspection and VIN history review thereby gaining greater confidence before buying the vehicle sight unseen.

“This new program simply increases one’s search area for the perfect vehicle at the perfect price to all of North America” says Baliwalla.

For a small amount, clients can also upgrade to Automall Network’s full service which includes sourcing and negotiating through wholesale dealer-only auctions and licensed dealers.

“Two years ago, we were importing used lower priced vehicles like Toyota Corollas and still saving our clients a few thousand dollars. However, car prices have changed and it doesn’t make sense to do that now” says Baliwalla. “Today, the savings exist when importing mid and luxury vehicles like BMW, Mercedes, Porsche, Land Rover, Acura, Lexus, Audi, Cadillac, even higher priced Hondas and Toyotas that are typically 3-4 years old and newer. Differences in price may vary, but in general, the newer the vehicle, the greater the savings through importing”.

Automall Network is a car brokerage, started in 1999. They do for car buyers what a real estate agent would do for a home buyer including sourcing the vehicle they want and negotiating the best price on their client’s behalf. For media inquiries, contact Viraf Baliwalla at (866) 310-8701 x303 or email viraf@automallnetwork.com.

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February 12, 2011

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With a stronger dollar, is it time for Canadians to look at buying vehicles cross-border again?

Toronto, ON – Jan 5, 2010 – For many years, there had been a large price disparity between vehicle prices in the US and Canada. However, with a low Canadian dollar, the exchange rate destroyed any benefit for Canadians. Then, in 2007, as the Loonie grew stronger, the difference became substantial. As the currencies approached par and then some, the differences became obscene.

“These large differences were not just on high end new vehicles” says Viraf Baliwalla, President of Automall Network. ”There were also savings of $10,000 or more to be had on mainstream used vehicles.”

For example, in Dec. 2007, Automall Network bought a 2007 Honda Accord EXL for a client in Edmonton, AB. The vehicle only had 7,285 miles on it. Being a licensed dealer, they purchased it at a dealer-only wholesale auction in Texas, had it shipped to Toronto where it was inspected and Canadian-ized and put on a railcar destined for Edmonton, some 3,500 km away. The customer had it certified and registered locally. “Even after all the transportation, the cost was still about $8,000 less than buying a new Canadian vehicle” says Baliwalla.

With all the media attention, the used car business then had a shakeout and the price gap narrowed. By the spring of 2008, there was a dramatic rationalization thus making importing unattractive. Then in October 2008, the Canadian dollar plummeted and importing dried up.

Over the last few months, things have changed. The dollar has strengthened and the differential has grown again,”the two prime ingredients for a successful importing environment” says Baliwalla. “On some mainstream vehicles, it won’t make sense to import. Then again, on others, the savings could be significant” (see chart).

The other advantage of buying a vehicle in the US is greater availability. With a market that is ten times as big, the likelihood of finding a newer vehicle with lower mileage and in good condition is much higher. “There are far more vehicles to choose from, especially newer ones” claims Baliwalla. “You can buy current model year vehicles with less than 10,000 miles for thousands of dollars less”.

Automall Network produces a monthly Cross Border Report comparing vehicle prices in Canada and the US as part of their “Serious Buyer, Serious Seller” community eletter. Consumers can subscribe for free by joining the community at www.AutomallNetwork.com.

Automall Network is a vehicle buying service helping consumers throughout North America buy new and used vehicles. They do for car buyers what a real estate agent would do for a home buyer. For media inquiries, contact Viraf Baliwalla at (866) 310-8701 x303 or at viraf@AutomallNetwork.com.

CROSS BORDER REPORT
Country	Vehicle	Mileage	Price	Comments
US	2007 Audi S4 Convertible+NAV	28,081 miles	$31,500 US	Warranty in Canada – Yes
Canada	2007 Audi S4 Convertible+NAV	24,228 km	$49,000 CDN
US	2007 Toyota Corolla LE	40,902 miles	$10,200 US	Warranty in Canada – yes
Canada	2007 Toyota Corolla CE	55,207 km	$10,800 CDN	LE’s are $6,200 more than CE when new in Canada
US	2009 Infiniti G37X AWD	18,788 miles	$26,500 US	Warranty in Canada – yes
Canada	2009 Infiniti G37X AWD	1,065 km	$36,500 CDN

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Canadian dollar, savings on vehicles, wholesale auto auction

January 13, 2010

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Is your leasing company watching your back if your vehicle is written off?

Leasing is the often confusing and misunderstood cousin to buying and financing a vehicle. People lease because of the lower monthly payment on a new vehicle, however the leasing company owns the vehicle, not you. So what then happens if a leased vehicle is deemed a total loss by your insurance company due to theft or major damage? Let’s consider the claim for Sharon whose leased vehicle was written off.

When you sign a lease contract, you automatically waive your right to the proceeds of any insurance claim. You are not even involved in the settlement discussions with the insurance company, they settle with the owner of the vehicle – the leasing company – even though you are the one paying for the insurance premiums. Once the leasing company agrees to the settlement value, the insurance company will put the cheque in both the lessor’s and lessee’s name. However, most leasing contracts you sign give the leasing company permission to cash the cheque without your further permission or endorsement.

As you make payments, the balance of the total value of the lease decreases, just like a balance on a mortgage. If the settlement is more than the amount owing, this is called positive equity. The leasing company should keep what they are owed and refund you the difference. The higher the settlement value, the greater the positive equity and the more money the leasing company should refund you. However, as in the case of Sharon, the leasing company accepted a low settlement that allowed them to clear off the amount owing on their books. Had the leasing company pushed for a fair value, they could have negotiated a higher settlement thus increasing the difference that Sharon was entitled to.

The insurance company settlement is meant to “indemnify” both insureds, the lessor and the lessee. However, if the leasing company accepts the value because what they are owed is covered by the settlement, thereby disregarding your right to be indemnified fairly, and you can demonstrate that you suffered a loss because of their lack of effort, you may have legal recourse. Many such situations can be avoided by taking proactive steps.

TheyWroteOffMyCar.com is a national helpline that assists policyholders whose vehicles have been written off by their insurance company. In a real-time study of 3,200 total loss insurance claims, only 8% were found to be close to true market value, 38% were low by upwards of several thousand dollars. TheyWroteOffMyCar.com offers policyholders a free review of their insurance company’s valuation as a professional second opinion to ensure they are not part of the 38%. As well, TheyWroteOffMyCar.com offers assistance in obtaining a higher settlement if the valuation is low.

For media inquiries, please contact Viraf Baliwalla at (866) 249-5474 ext 303 or via email at viraf@TheyWroteOffMyCar.com.

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November 28, 2009

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