Should I buy a hail damaged car from a dealership?
Think about it like this. HAIL SALE. You’ve probably seen dealerships offer a back-breaking good deal on inventory that has been damaged in a hail storm.
In the event of a hail storm where a dealerships entire inventory of vehicles have been damaged by hail, they have only a few options. They can file a claim with their insurance provider and collect money to REPAIR the hail damaged inventory or collect the money and SELL the vehicles.
Just like the consumer, the dealership is always looking for the best deal. This is something you should always keep in mind before succumbing to the red inflatable wind dancer parked in your neighborhood dealership’s lot.
Who Really Wins?
If you NEVER plan on reselling or trading-in the hail damaged vehicle, you are winning.
A HAIL SALE vehicle is a perfect solution for a high school students first car, a college student, or a person whose sole purpose for purchasing is solely for transportation. In other words, as a first car.
If a dealership decides to keep the money that the insurance has approved to pay for each vehicle damaged, they have already taken care of a portion of the loss.
Then, if they decide to advertise a HAIL SALE – they are recouping the remainder of the loss from YOU – the consumer.
Just like you, the car owner with comprehensive insurance coverage on that vehicle, the dealership has to pay a deductible for each vehicle that suffered a loss. For the individual owner, most local paintless dent repair shops like Hail Depot will waive the deductible.
Dealership’s don’t have that luxury. They either have the option of having an in-house dent guy repair the dents or they have to hire outside help to get the hail damage repaired.
The in-house guy is working hourly to repair dents. Unfortunately, one in-house dent guy can’t repair 50-500 hail damaged vehicles in the time necessary to turn a profit. Also, most in-house repair guys don’t have the paintless dent repair experience needed to properly repair hail damage.
Hail Depot has stepped in and repaired thousands of hail damaged vehicles for dealerships. For a paintless dent repair shop, this business partnership isn’t always mutually beneficial. The dealership will award the PDR shop that agrees to do the work at a wholesale cost.
As mentioned before, Dealerships are looking to make a profit, not pay thousands of dollars on inventory they have already purchased.
“The Newby” is still winning and so is “The Dealership.” Who remains? You.
When a dealership brings out the balloons and promise of saving thousands on a new vehicle with minimal hail damage, you need to take all of the theatrics out of the purchasing equation. What you need to do is start asking questions. Fast-talking and flowery words will not put the money you have lost back in your pocket. When they tell you the cost to repair at a local PDR shop will be ballpark $200 and agree to discount the car $1,500 and give you a $500 discount….think again.
Questions to Ask the Dealership
Before attempting to make a sweet deal on a HAIL SALE car, you need to know the right questions to ask.
- Analyze the vehicle carefully, since there may be more harm than immediately meets the eye.
- If you are purchasing from a dealer, figure out if it is going to fix the harm or guarantee the vehicle.
- Consult with your insurance policy representative to discover when you’ll continue to qualify for comprehensive insurance coverage.
- If you are financing your vehicle purchase, ensure that your lender will fund a hail-damaged vehicle.
- Think about the price of the damage in your resale value in the future.
Read more about “Should You Buy A Hail Damaged Car” here from the website cars.com