TTL Valuation Inquiry – Can I Contest the Mileage Adjustment Amount?
I recently had my car totaled in an accident, and I’ve received the total loss offer and valuation report for my vehicle. I have some concerns that I would like to discuss and would appreciate any advice on how to effectively address them. Specifically, I’m questioning the mileage adjustment rate and a potential outlier among the comparable vehicles. For context, the other party was at fault, and my insurance is handling the payout and will seek reimbursement from the at-fault driver’s insurer. My vehicle was a 2014 Nissan Sentra.
Mileage Adjustment Concern
After doing some calculations, it seems that the mileage adjustment rate is about $0.02 per mile. My car had 88,000 miles, while the comparable vehicles have 93,000, 116,000, 124,000, 126,000, and 129,000 miles. I’d like to contest this valuation, especially since one vehicle with 41,000 more miles than mine was only adjusted down by $820. This feels unreasonable to me. What’s the industry standard for mileage adjustments? I believe a rate of at least $0.05 per mile would be much fairer.
Outlier in Comparables
I’ve noticed there’s an outlier in the vehicle comparisons that seems to be negatively impacting my valuation. The comparable cars are priced at $6,175, $6,899, $6,995, $6,999, while the outlier is priced at $5,300 and listed by a private seller. Additionally, I found another vehicle just 72 miles away (the original search radius was 50 miles) priced at $6,000. Is it possible to substitute one comparable for another in this context?
Thank you for your assistance!
It sounds like you’re navigating a complex situation with your vehicle’s total loss valuation, and it’s great that you’re doing your research to support your case. Here are some thoughts on how to approach your concerns regarding the mileage adjustment and the outlier in comps:
Mileage Adjustment
Understand the Calculation: The $0.02 per mile adjustment seems low, especially given the mileage difference with other vehicles. You are justified in questioning this rate. Gathering industry standards can be helpful; typical mileage adjustments often range from $0.03 to $0.05 per mile, depending on the vehicle’s condition and market demand.
Compare Comparable Vehicles: You are correct to highlight the discrepancy between your vehicle and the comp with significantly higher mileage. Prepare a clear breakdown of how the valuation was derived, and emphasize that the lower mileage of your vehicle should warrant a higher adjustment.
Support Your Argument: If possible, gather additional data points or market analysis to back up your claim regarding the mileage adjustment rate. Websites like Kelley Blue Book, Edmunds, or local listings can support your position.
Outlier in Comps
Challenge the Outlier: It makes sense to point out the outlier and its potential impact on your valuation. If it seems like an anomaly (perhaps due to condition, seller motivation, etc.), you can argue that it skews the fair market value.
Provide a Replacement Comparison: If you found another vehicle closer to your mileage and condition, it makes sense to use it as a reference point. Presenting comps that are as close as possible in mileage and condition to your car will strengthen your argument for a more accurate valuation.
Ask About Flexibility: Inquire if it’s possible to swap out the outlier with the more comparable vehicle you found. Showing that you’ve done your homework can help persuade the insurance adjuster to reconsider.
General Approach
Remember, persistence is key! Don’t hesitate to ask for a re-evaluation or more clarification from the insurance adjuster. Good luck, and I hope you achieve a fair resolution!