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Location: Under the X in Texas | The news on local TV tonight is that the R&S auction appears to have been hit by a tornado just before 10 pm. This is the auction where the 300F Special GT was up for sale. Also a 300C Ht, 300G Ht, and a couple of other Forwardlook cars. There were two major large tents on site and one tent lifted up and blew onto the other and then out onto the 101 freeway. If both tents collapsed there would be dozens and dozens of aluminum support poles and cables that fell onto cars. The news video was mostly dark but showed some broken glass and one collector was interviewed saying his Porsche was significantly damaged. The tent where the actual auction was going on is where almost all the people would have been at that late hour. The auction was stopped when the winds picked up and evacuated they said. There was no report on the news of any human injury. That is all I know right now. I left there around 4pm this afternoon as it was cold and raining and I had seen everything for today. Pray for these folks involved and their cars please. If I have more specific info tomorrow I'll post a follow-up. Wayne Graefen |
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Expert
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Location: DFW, TX | This is awful news Wayne. I hope no one is hurt. There was a similar post on the HAMB before it got taken down tonight. |
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Elite Veteran
Posts: 1107
Location: Arvada, Colorado (NW Denver Metro Area) | Horrible news! We should hear more in the morning news at first light. Hopefully all the people found some shelter before the tornado /Micro burst hit the tents. |
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| Wayne . Things are not well. My Facel Vega was parked right beside Larry T's 300F.There is a large number of very nice cars that are involved. I speculate at least 50 % of the auction cars have sustained damage. Being in the business I'd conservatively estimate damages will easily exceed $ 50M . It appears that once the tethers on the tent broke loose the approximately 60 ft tall/ 6" diameter iron main poles either stayed attached to the tent itself and pummeled the cars with every flap of the covering or the poles fell across several cars as they broke free. The coverings flapped till the winds died down. Authorities cleared the area and have closed off indefinately. Were all heading down shortly to evaluate the situation. Hope things work out OK. Like they say if you got lemons make lemonade. We could use a couple of repair/restorations at the shop to keep thing going along. |
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Location: Under the X in Texas | Difficult to get info here yet. Local news can't get into the auction site. They say cranes are coming in to take the south tent and poles off the cars. That is where the 300F and Facel were. This is very bad. I'll probably hear more by attending other auctions and listening to the announcements or talk between collectors. I spoke on the phone with Larry Tarantolo this a.m. and his crew can't get to the cars yet this morning. |
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Extreme Veteran
Posts: 343
Location: Route 66, Sullivan MO | That's just insane, just thankful that no body was hurt. I found some info with aerial photos here:
http://www.abc15.com/content/weather/stories/story/Tents-collapse-d... |
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Extreme Veteran
Posts: 343
Location: Route 66, Sullivan MO | Here is an email I got from a friend this morning.
The legendary Russo and Steele auction in Scottsdale, Arizona suffered
an unprecedented catastrophe at just after 6:00 pm, January 22.
Violent storms have been wreaking havoc at both Barrett-Jackson and
Russo and Steele this year, with torrential rain and extremely fierce
winds. The storms got the better of Russo and Steele Thursday night
and chaos reigns at the moment.
With somewhere between 5,000 and 10,000 people inside the gates and
the auction underway, rain and straight line winds in excess of fifty
mph struck the sight, tearing apart two of the approximately 800 foot
long exhibition tents that the collector cars are kept in prior to,
and after, going across the auction block. The largest of the
exhibition tents tore, then collapsed, across hundreds of valuable
collector cars, followed by a second huge tent covering hundreds more
cars. One of the tents actually ripped in two and most of it flew over
a hundred feet away and landed on a nearby freeway, blocking traffic
well into Friday morning. Meanwhile, hundreds of magnificent cars sat
exposed to the raging storm, almost all of them with their windows
down, and just about every convertible on site had its top down as
well.
Due to the ferocity of the storm and flying debris, Scottsdale and
Phoenix police evacuated the crowd right away, uncertain the main
auction tent could withstand the storm. Thankfully, no injuries have
been reported. As of this writing, the whole Russo and Steele complex
is still under lock down by the police and fire departments, and car
owners have not been allowed onto the grounds to assess the damage to
their cars or even cover their cars in some way. Whether or not the
auction will continue this year is still in doubt, as Russo and Steele
themselves cannot allow people back in the compound until all the
damage is cleared. It is unlikely the sale will continue this week.
Over the next few days the extent of the damage to the cars at Russo
will be worked out, but what will be done about this is likely to be a
long-term dilemma. To our knowledge, nothing like this has ever
occurred at any major collector car auction, let alone the second
largest car auction in the world. If you've been watching
Barrett-Jackson on television, you might be wondering where all the
Mopars are (and all the high dollar cars for that matter). Well,
they're over at Russo and Steele in huge numbers, with their owners
opting for that venue's rules of not allowing owner buy backs and
allowing owners to place reserves on their cars. As such, a very large
number of high-end Mopars are at Russo and Steele, including a
significant number of Hemi cars, Max Wedges, Superbirds, E-body
convertibles, and at least two factory '68 Hemi Super Stockers. Right
now, we’re all waiting to see how many suffered damage, and to what
extent. We'll keep you posted.
http://www.azfamily.com/video/featured-videos/Russo-Steel-car-owner...
http://www.azfamily.com/home/related/Clean-up-at-Russo-Steele-expec... |
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Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
Location: bishop, ca | Although I am not versed on AZ general liability laws, it may be determined that the loss to the auction cars resulted
from an "Act of God", and therefore the auction company may be held not to be legally responsible for any damages which
resulted from the event (they didn't cause the tornado, and they acted properly-typically to protect the auction cars from
'normal' loss events).
Hopefully, the cars were all insured for Comprehensive Loss coverage by their owners, and, I'll bet, the auction company(ies)
include damage waiver clauses in their contracts.
As we all know, once the auction is concluded ownership passes to the high bidder.
The winning bidder's auto insurance company typically extends newly-purchased coverage onto a car, for up to a certain
specified time---this occurs with "normal" auto insurance carriers, if all of a person's cars are insured with that carrier--
and the type/sort/amount of coverage that is extended is based upon the coverages that are already applied to the
owner's other insured vehicles.
What happens when a person's "collector" car(s) is/are insured with a Specialty Carrier (like Condon & Skelly, etc): I
dunno, because there is no presumption (necessarily) that the newly-purchased car would be insured with that company,
and that Specialty Carrier, obviously, will have received no premium payments, yet, on that auction car----whether
that company decides to extend coverage to that car probably depends upon their coverage-history with each
individual insured.
If a 'winner' renegs on his purchase of the damaged car, ownership will revert to the seller, whose auto
Comprehensive Loss coverage will probably be able to cover the damage, since the sales transaction was never consumated.
The seller will probably still owe the auction company for the selling-commission, as it sold the car in good faith.
What the auction company does with a non-paying buyer is contractually between themselves.
Depending upon the insurance carrier and/or its policy-agreement terms, the Comprehensive coverage might have
a policy-limits on the coverage. Typically, Comprehensive coverage is not limited in amount, other than to a car's "Actual Cash Value", which is subject to an independent appraisal, if necessary/required between the company and its Insured.
There was a mention of the 'wind event' on the B-J broadcast, last night, and the commentators/auctioneers down-played to a certain extent the severe windstorm that was occurring outside their big tent.
Claims are never dull work, for an independent adjuster.
Edited by d500neil 2010-01-22 5:12 PM
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Elite Veteran
Posts: 988
Location: Kansas City, Kansas | I just watched this video and it looks like an exposed white '60 or '61 Chrysler (end of video / 40 seconds from end). Also looks like another possible dark-colored forwardlook next to it with a large pole setting too close to it. It will be interesting to see the "on the ground" photos and video that comes available as soon as they open the site up.
http://www.azfamily.com/video/featured-videos/President-of-Russo-St...
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Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
Location: bishop, ca | Also, very few states (GA is the only one that I'm aware of) has any insurance statutes that recognize the (somewhat dubious) concept of "Diminished Valuation" , which holds that any ('normal', anyway!) car that suffers any repairwork to its OEM condition, no-matter how well the car may be repaired and/or repainted, has suffered a diminution of its fair market value---kind of like allowing a claim for marrying a non-virgin---and that a monetary compensation for same is warranted/allowed to be made.
I seriously doubt that a "Right to Work" state, like AZ, has any Diminished Valuation statutes on its books.
Edited by d500neil 2010-01-22 2:30 PM
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Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
Location: bishop, ca | ...At the B-J, last nite, a completely original 30 mile (that's right) 1957 Plymouth Savoy(?) 2-dr sedan in blue/white was sold
for $48K (plus 10% buyer's commission, and an 8% seller's-commission).
If THAT car had suffered damage which warranted a repair/repainting, I would be major-pissed if I were its new owner, but,
at least, there would be a great story-explanation regarding its new-finish work.
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Elite Veteran
Posts: 988
Location: Kansas City, Kansas | A few videos worth watching. First is a live video of the first tent collapsing
http://www.youtube.com/watch?v=KqAnXEOSLHw
Go forward to 21 minutes on the video below to see the evacuation during the bidding!
http://www.ustream.tv/recorded/4135640 |
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Expert
Posts: 4072
Location: Connecticut | The UStream video is amazing. I like the way the auctioneer got everyone out without creating a panic. Good job ! Ron
Edited by ronbo97 2010-01-22 7:49 PM
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Veteran
Posts: 294
Location: Ohio | wow that sucks |
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Expert
Posts: 4072
Location: Connecticut | Here's an aerial slide show from Phoenix channel 5. You can see the tent poles laying across several cars. One appears to have had its roof crushed as a result. http://www.kpho.com/slideshow/news/22316101/detail.html
Edited by ronbo97 2010-01-22 8:13 PM
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Expert
Posts: 1497
Location: Fairfax, Minnesota | After this mess is straightened out, I hope that someone can put together a report on the performance level of any auto insurance companies involved in the repair of damaged vehicles. I would like to know which companies simply took care of their clients per their marketing claims and which ones tried to find loop holes.
Best of luck to everyone involved...
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Location: Lordstown, Ohio | d500neil - 2010-01-22 2:29 PM
Also, very few states (GA is the only one that I'm aware of) has any insurance statutes that recognize the (somewhat dubious) concept of "Diminished Valuation" , which holds that any ('normal', anyway!) car that suffers any repairwork to its OEM condition, no-matter how well the car may be repaired and/or repainted, has suffered a diminution of its fair market value---kind of like allowing a claim for marrying a non-virgin---and that a monetary compensation for same is warranted/allowed to be made.
I seriously doubt that a "Right to Work" state, like AZ, has any Diminished Valuation statutes on its books.
Neil,
Being that I worked in the collision repair industry for 22+years, the issue of diminshed value is everywhere. GA seemed as if it had start in it. I remember working there between 85-98. It was pretty strong. And my understanding still is.
The issue of DV is one thats least known. There are so many roads to go down on it. So many states don't acknowledge it. And sadly so many car owners are clueless to it being there.
The concept of DV applies to new cars, neverbeen hit or repaired. It is next to impossible to claim, the car is pre-loss. A shop can get repairs very close to what the factory offered, or you can have a shop do work on your car thats very obvious, that work was done to it. Hence when one sells/trades there cars its obvious its been fixed. Therefore instead of one having a 12k Ford its value is now 8k genericly speaking
I really do not feel that DV will play into this
By the way, my dads car was in an accident this past Oct. in which a female motorcyclist was killed. He got and estimate to do repairs for his 60 Phoenix convertible. The supposingly goods hands people are still trying to handle him. I am sorry, but being in the collision repair industry, I have NO respect for anyone on the insurance side that does EVERYTHING they can to avoid paying to repair a persons car properly
That is the primary reason I left the colision repair industry. The control and manipulation of the insurance companies. Sad part about it, there is very few skilled people still in it. And very little people from the pool to draw from.
This subject can go very deep and far, so its best to end it here
Wayne
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Elite Veteran
Posts: 755
Location: Big M Automotive's Yard | I agree Wayne. I have worked in Body Shops and been an Independent.
As far as Ray's comments, that will never be published. With all the different Insurance companies involved, they won't release the amount of money paid out on that. It would scare their stockholders and their competition could use that information.
M'Lisa |
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Expert
Posts: 3070
Location: Scotland | the '61 Imperial convertible,'60 Dodge and 300G look OK in this shot,the DeTomaso didn't fare so well though.
http://www.azcentral.com/news/articles/2010/01/22/20100122storm-hit... |
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Location: Under the X in Texas | As far as I know the owners did not get in to their cars today. I talked to Larry Tarantolo, owner of the F Special and the owner of the Facel (Larry G) to tell them that I heard from a Russo Steele employee whom I have known for many years that both of those cars were totally okay as far he could quickly surmise. L.T. however had a total of 3 cars at the auction and I don't know about the other two. There was only one person with a minor injury. Someone driving in one of the tents had his car hit by a pole and was knocked out but is said to be fine. I spoke with a couple who were there during the evacuation and they said everything was calm and orderly and professionally handled. I do not know the owner of the white 300G but it was a truly excellent very original car; you can look it up on the internet catalog - I agree in the video it looks fine. I talked to Hagerty people who work very closely with R&S on this auction and they expect to get back to running an auction late tomorrow which speaks loudly to me that the situation is not as severe as the earliest reports but obviously a FEW cars are very seriously damaged. Thanks to the Brody family and John Lazenby for information and relays in putting this together today. It was the Brody's son who was one of the last off the property Thurs nite and had checked on the 300F and Facel. You can't imagine how relieved those two owners were this afternoon to hear news on their cars. Just a comment on car quality between Barrett-Jackson and Russo & Steele. The cars of B-J this year overall in a personal walkaround of the entire grounds were way really poor on quality. If you think prices are down in TV sales, they certainly should be for the cars they had there to bid on. In contrast the cars at R&S were much higher quality and deserved much higher bids. In my opinion B-J has become nothing more than a circus for a very ill-informed public with Craig Jackson making millions in gate receipts, TV fees, and vendor space rentals and percentage cut and oh by the way they also sell used cars that by and large aren't much better than what were on used car lots back in 1975. B-J is NOT the bellweather for the hobby any more. The best cars are no longer consigned to B-J. Best cars go to Russo&Steele and RM to get REAL bids from serious collectors, not TV time seekers. I write this not knowing what you are seeing on TV because my hotel room just has basic cable so I can't watch the auction! But I'm your boots on the ground and I was there at RM Auction (AZ Biltmore Resort location) when the '59 DeSoto Adventurer Cv sold for 205,000, when the '60 300F Cv sold for 132,500, when the Plainsman concept was bid to 160,000 not meeting reserve and when the '55 Imperial Newport sold for 47,500. Also when the '64 Shelby 427 Cobra "Flip-Top" roadster was short of reserve at $1,450,000. Fun to watch all with my hands in my pocket. Wayne Graefen
Edited by StillOutThere 2010-01-22 10:43 PM
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Elite Veteran
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Location: bradenton florida | We all have to get together and raise some money to help out the ones that have suffered so much in such a horrific act. It will be years before they can buff out the scratches and dry out the carpets. As for me i now have decided to never take my car out again. It will stay safely in my garage with a million dollar insurance policy. |
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Veteran
Posts: 294
Location: Ohio | Say what you will about BJ but its still the only REAL auction out there. A real auction starts at zero and goes for what someone is willing to pay. The others are glorified auto sales and not auctions. Basicly the owner already knows what he is wanting to sell the car for and its just an arena for him to see if someone will pay more. I do agree however the BEST cars especialy the Mopar stuff is NOT at BJ. They all would be right now if not for the fact Mopars are wayyy down right now. I about stroked out tonight seeing some of the FL's sell at BJ so cheap. But as a guy who makes his living at auctions I never understood an auction with a reserve lol....the reserve is what the guy wants for his car. The real idiots are the ones bidding past it |
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Location: Connecticut | Wayne -
Are there any updates ?
Ron |
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Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
Location: bishop, ca | In Re; Wayne's comment, above: Georgia is the only state I know of that statutorily recognizes the legal theory
of Diminished Valuation, on (even-) a completely-repaired motor vehicle.
I know that CA laws do not apply or allow any extra consideration for D.-V., in addition to the payment for the full cost of Like-Kind- Quality repair work.
Insurance companies, here, and in NV, where I am also licensed, can subtract or reduce a materials-cost (but not a labor-cost) allowance, if a "Better-Condition" item's installation will necessarily result in an increase in value of the object to which it shall be installed.
This-said, a claimant can always argue/negotiate for whatever he wishes to receive.
A lot of times a liability carrier, in order "to control" the related Bodily Injury claim(s), will over-pay on a (usually: total-loss) auto Property Damage claim, to demonstrate their Good Faith in trying to settle the (mucho-more) expensive personal injury claim(s) that may be involved in the situation, but, this negotiated/agreed "over-payment" is not to be (necessarily) construed as being a payment for Diminished Value of the car.
The big problems facing an insurance company, in this subject auction-fiasco, are confirming the ownership of a car at the time of the wind event, and then confirming whether their existing policy on the car is still in effect, and/or WHETHER they might be required (by applicable state laws) to cover the car, based upon its NEW-owner's coverage-history with that company.
Once coverage is confirmed on a damaged car, the repair process will be relatively straightforward, altho one question which may be more complicated is the matter of the towing costs involved in transporting the now-damaged car to a repair facility, somewhere.
The only big-losers will be those persons who do not have Comprehensive coverage on their damaged car.
The auction-house will have Business Interruption coverage (a concern to you all, I'm sure), so you don't have to lose sleep over their situation, altho B.-I. claims are a bitch to adjust, and which will require the use of forensic accountants to figure out their net loss of income from this event.
The auction's tent-provider probably has a contract with RM, wherein it agreed to indemnify & hold-harmless RM from any losses associated with the use or operation of their tents, so THAT company's liability carrier is definitely concerned about how well those tents were pegged into the ground!----It will be facing liability and subrogation (fancy word for get-your-money- back) claims from just about everybody, maybe including RM's Business-Income Loss carrier, too.
Edited by d500neil 2010-01-23 3:40 PM
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Elite Veteran
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Location: Kansas City, Kansas | Update: (excerpt from article)
Russo and Steele Collector Automobile Auction Re-opens to the Public Sunday at 8 a.m.
Consignors cleared to view collector cars on Saturday during breakfast briefing
On Friday evening the City of Scottsdale Fire Marshall cleared Russo and Steele to open the doors for only the car owners Saturday morning for the special briefing. By Saturday morning the site had been completely cleaned and all debris has been removed. Early Saturday morning the Scottsdale Fire Marshal deemed the property safe to resume all auction operations Sunday morning at 8 a.m. For the benefit of Russo and Steele's valued clients and car enthusiasts throughout the valley, the auction will be extended through Monday, Jan. 25. Updated run lists and further details will be posted at www.RussoandSteele.com.
To see the full article:
http://www.prnewswire.com/news-releases/russo-and-steele-collector-...
Here is a link from the H.A.M.B. showing a ton of the damage. There is a '57-59 Chry 300 (black) with damage.
https://sites.google.com/a/allclassicsllc.com/www/home/2010-russo-an...
Edited by slimwhitman 2010-01-23 10:35 PM
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Expert
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Location: Fairfax, Minnesota | I was thinking of a more informal poll of the owners of vehicles that were covered. It might be a good project for a site like HAMB. Anyone one that knows someone with one of the damaged vehicles could contact them after a few months and report their findings to a central posting.
deloverly - 2010-01-22 8:50 PM
As far as Ray's comments, that will never be published. With all the different Insurance companies involved, they won't release the amount of money paid out on that. It would scare their stockholders and their competition could use that information.
M'Lisa |
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Location: Under the X in Texas | I don't have too much to say after this busy 4 days I've been here attending four auctions and the Pavillions cruise and the weather from very nice to incredibly bad and driving in Phoenix /Scottsdale traffic for this TX country boy (okay, so I grew up in Chicago - I don't claim that any more!). The above post about the auction restarting Sunday is accurate. Opens at 8 at the gate, auction starts at 10 a.m. I was told 200+ cars as of this morning were ready to auction by Brad Brody who works at this event for R&S. I spoke with Tarantolo, owner of the F Special and though it is not damaged, his other two cars sustained damage so he is packing it all up and going home. R&S is giving him 3 free entries to any future auction venue of theirs that he chooses as a starting point. Without the F at auction I am not extending my stay to watch other cars so I'm headed home too. Oh, the Facel Vega survived without a scratch. I had a poor connection to Tarantolo but I believe he said the F had one minor nick in a trim piece and no other damage. The attached pic is from the freeway this morning looking back across the cars, across to the eighth row (as I recall) from the highway. This would be the south tent area (second to fold that fell on the cars). If you can spot the black '52-3 Packard convertible pointed away from the camera, the F is to its right and is now under a silver cover with the fins pointing up to the right, rear. To its right also under silver cover is the Facel Vega. Note in the near foreground of this picture the hood that has been crushed. I shot this pic on a complete guess from memory as to where the F should be - I couldn't see it in my camera but that has to be it now that it is blown up on my screen.
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Extreme Veteran
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Location: lakeview, ny 14085 | "Say what you will about BJ but its still the only REAL auction out there. A real auction starts at zero and goes for what someone is willing to pay. The others are glorified auto sales and not auctions. Basicly the owner already knows what he is wanting to sell the car for and its just an arena for him to see if someone will pay more." arte cunningham
not sure i understand that reasoning. the so called "no reserve" auctions allow the owner to bid on his own car to save it from selling to someone for less than he will take for the car. he must then pay both buyer and seller fees, but saves his car from being swiped. fully 1/3 of the deals go this way according to BJ. at a reserve auction at least the owner is honest about his bottom price but they do shill the car to get it to the reserve whether it be a shill or "the wall". you are correct it is just a glorified car sale just the same. i may be as dumb as i look but i was for 20 years a buyer for an auto group who had 15 stores and bought over 1000 cars a year probably half of them at auctions. sometimes i was bidding against the wall, sometimes a real bidder, doesnt make any difference you know what you can pay and when to stop but know that you wont make a dime on a car you dont buy. been on the otherside "the block" countless times and have whispered those famous words to the auctioneer "i need 10000 but get me real money and dont lose em over 9000". meaning you bang him off the wall all the way from 5000 to 9000 but dont lose him then cause if hes real at 9000 we can move the rest of the way.(he knowing he wont make any money on a car he doesnt buy)as far as the high rollers with much more money than common sense that is just not the real world and if if you get them on one of your cars well then lucky you, you have won the lotto.
another thing that comes to mind about these collector car auctions is that in some states and Arizonia is one you must title or transfer ownership to the auction and then they become the seller to the bidder so when somthing like this wind event happens r & s actually is the owner of record of the damaged vehichles (i was going to send a group of the dealers cars to bj @ one time but the dealer group was not comfortable with this arrangement, but evidently that is there dmv request there this is also when they told us how their "no reserve" worked and that 33% were actually purchased by the original consignor) so who pays for the damage? on a similar note a dealer friend had a car stolen out of Carlisle car corral a year ago and they said they had no recourse with them. different deal but you never know till you in the middle of it. oh well time for this old fart to turn in. stay thirsty my friends.
Edited by dukjupiter 2010-01-23 11:52 PM
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Extreme Veteran
Posts: 558
Location: Grenoble - France |
Here it is (screen capture) :
 (Damage-1.jpg)
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Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
Location: bishop, ca | I've looked at the horrific photos, and there appear to be some economic total losses, here.
As far as a car's Fair market Value, if it had successfully crossed the auction block, well, that's pretty
much dispositive, there, assuming that some carrier will agree to extend Comp coverage onto a newly-purchased
car, that they hadn't yet received a dime-of-premium payment on, yet.
If it hadn't reached its Reserve, or hadn't yet crossed, then the collector's-coverage policy limits would apply (if
there ARE specified policy limits coverage on the car; otherwise, there are potential appraisal/negotiation difficulties
ahead, on some of these cars.
The total-losses may include a Caddie convie, a Nissan Unfair Lady, a Pantera (4-sure), a Trans Am, a blue Camaro,
that black 62 Fart, the Torino convie, and maybe that 70 R.R. hardtop.
The 70 Hemi Cuda convertible with the crushed A-pillars/windshield will be really tough to repair--the owner will probably
try to declare it as being an economic total loss, but his carrier (if any) will probably not be 'buying' the car as being
a 'total'.
The GOOD news about all of these cars' losses is that they will each receive individual damage appraisals and settlements,
once they are transported to a repair facility.
The BAD news is the discussion about a car's "diminished value" which allegedly would result from its
having been repaired and/or repainted.
Hopefully, the insurance carrier will point out that true-originality is not apparently a major consideration
among the deep pocket feeding-frenzied auction bidders, who apparently DO like the color "red" on a car!
Edited by d500neil 2010-01-26 4:22 PM
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Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
Location: bishop, ca | OK, going up/back to S.O.T's question, about a consignor having to buy-back his own car if its high bid does not reach
his own desired reserve: he still owns the car, after it crosses the block, so his (Comprehensive) insurance coverage
is not affected.
His carrier, if it does not have a Stated Value on its applicable Comprehensive policy limits, would probably declare that
the car's Fair Market Value (and, the basis as to whether it might be considered as being an economic total loss) was the
dollar amount of the (consignor-owner's own...) high auction bid on the car.
But, ironically, a consignor-owner who is forced to pay a buyer's-and-seller's premium on his own (non-selling) car might
stand to realize a significant net-profit on a HIGH-STATED-VALUE car which is declared to be an economic total loss, compared
to what the owner might have received by way of the high-auction-bid amount, on his car.
And, each owner can decide if he wants to retain salvage-possession on the remains of his car. His carrier
would merely subtract the "salvage value" of the car from the net Comprehensive coverage claim
proceeds that the owner receives.
Edited by d500neil 2010-01-26 4:17 PM
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Russo & Steele Scottsdale Hit by Tornado
