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Originally Posted by Kirk
I disagree... I live in California and my motorcycle just got totaled in May. Insurance law in this state says they have to pay you what the EXACT same car/bike would cost if you bought it used. If the car is a total loss, then the insurance company determined it's more expensive to fix it than to just buy a replacement. Why would you then want to buy the salvage car and try to fix it? Maybe you could cut some corners and save some money, but in the end you'd spend close to the replacement cost, have a car with a salvage title, and it may never be quite right. When the insurance company offered to sell me my salvaged bike, I told them to shove it and took the money - more than enough to buy a bike just like it that's never been wrecked. I'd prefer the peace of mind knowing that everything is straight and in good order with a newer, un-wrecked vehicle. Just my 2 cents too....
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Yup, doing the math always helps, and you are correct -- if the price of the wrecked car + cost to fix is anywhere in the ballpark of another car of similar age/miles, you are much better off just taking the payout from the insurance company and buying the new car.
My example for buying the wrecked car would've been something like : $20k payout from the insurance company, $4k to buy the wreck, $6k to fix, $10k savings for a car you know well enough to keep for a long time. Of course, the assumption here is that the $6k to fix figure is much less than what the insurance company thought it was going to pay, because (say) you get a great deal from a local shop (as opposed to going through the dealership), and/or you get some savings (e.g. reconditioned bumper instead of new).
Just wanted to make the OP aware of the options. Good luck
