Market value?

[ldcroberts]

Thanks to a less than observant cager I now have to justify what he has to pay me to compensate me for the loss of my bike. Keeping all the distractions like insurance etc out of it, it comes down to he has to pay me:

"Fair market value" - which is the highest price for the property that a willing buyer would have paid to a willing seller, assuming:
1. That there is no pressure on either one to buy or sell; and
2. That the buyer and seller know all the issues and history of the bike.

I want you to answer, honestly, what you would sell your bike for - assuming you aren't forced to sell for any reason other than the price is fair that you could sell it without feeling like you made money or lost money realistically.

Assume the following (keeping the numbers simple):

1. You paid $10,000 for the bike (which is exactly average as to what they go for in the market)
2. You have had it 4 months and maintained it carefully. (average commuting of 100km per week)

How much would you want for your bike (without being either greedy or generous to the buyer)?

[JimO]

10k 4 months ago so replacement should be 10k

[Tazz]

$10k. Any gear you were wearing get damaged?

[ldcroberts]

helmet has some marks/chips so probably best replaced, some other scuffs but nothing major on the other gear. Bike was brand new so he is claiming it's gone way down in value over 4 months (e.g. over $1000) by using some vague criteria based on what the occasional person who is forced to sell a brand new bike second hand can get - but that doesn't fit right with the "willing seller" part of the clause I'm sure.

[unstuck]

$12000

[ital916]

Not your fault, thus the part at fault pays what your bike is insured for. If it was your fault, then the insurance company pays market value.

That's how insurance works innit.....well that's what my insurance companies have always advised before signing the paperwork.

[Gremlin]

If I remember correctly, insurance companies usually have a policy that if a bike less than 6 months old is claimed on, it's a new bike.

[ldcroberts]

In my opinion - backed up by talking to their valuer - they are only wanting to pay what it would go for if I was forced to sell it second hand and calling that "market value", they are not looking at what an average person would sell it for willingly (presumably because nobody does actually willingly sell a bike so new so soon after unless they have mitigating circumstances).

I think most things you are forced to sell second hand go for lower value (e.g. try on-selling your beer in a pub after you drank some), but what has that got to do with him putting it right, that's where I think the insurance companies are misinterpreting the law. If someone spills your beer they have to give you another one the same where you are the first owner, not argue that you couldn't sell it for much therefore they pay you a pittance, nor buy you a beer but first drink as much as you had already drunk out of it before handing it to you.

[bogan]

4 months is nothing, 10K payout; any fluctuations in market value will be seasonal rather than actual over that time anyway.

[Tazz]

Yeah it's all BS. You're not trying to sell it now, you weren't trying to sell it then and (I assume) have been forced into this position by someone elses neglegience, not your own.
As other have stated, whatever they give you should enable you to replace it with exactly what you had. That is in an ideal world though

A 4 month old bike is still new, and you probably have had a few big-ish servicing costs to pay as well as having to replace your gear. What have they said about those?

If they get toey about it tell them to just find/supply you with all these 201X bikes with XXXX km's for the price they are saying it is worth.
Yes you do lose a lot of value when you ride a bike off the lot but no one forks out for one with the knowledge they want to sell if 4 months down the track because of that exact fact!

Also you would still be under warranty and possibly have a servicing/WOF deal. How many second hand bikes do you pick up with that.

[imdying]

What model/year bike, what kms, what are they offering.

Let us put it to the test, via trademe etc, and see if they are able to replace it for the value they're offering. If it can be done, no big deal, get that bike. If it can't, there are none available, it's not enough money, then push back.

You could cut all the BS in the meantime out and just PM Oscar though, you'll get a faster more accurate response.

[Hitcher]

Not your fault, thus the part at fault pays what your bike is insured for. If it was your fault, then the insurance company pays market value.

That's how insurance works innit.....well that's what my insurance companies have always advised before signing the paperwork.

No, that's not how it works. Market value applies for any claim made.

[swbarnett]

Bike was brand new so he is claiming it's gone way down in value over 4 months (e.g. over $1000) by using some vague criteria based on what the occasional person who is forced to sell a brand new bike second hand can get - but that doesn't fit right with the "willing seller" part of the clause I'm sure.

Like HELL!

The bike was new and only 4 months old. If insured I would not accept anything less than the full value of a NEW replacement (even if the price has gone up). If not insured I would settle for no less from the guilty party.

[IkieBikie]

How much damage???


I assume talking about replacement value its a right off??

Get the price to fix it up and ask for that!!!

[ldcroberts]

It's a 2014 Kawasaki Ninja 300, special edition with ABS, Burnt Orange. 1700kms on the clock, 2 months left on the inital rego. So it's barely run in (runs in at 1600km) carefully as per manufacturers instructions (never again will I do this, 60km top speed is painful for so long). Paid $10,349 on road, they are offering $9000 - which is probably about right for what someone would sell at if forced to sell, but there are none for sale of course.

International law says it has to be fair market value (seller and buyer happily agree) - again this will never happen on a near new bike due to the idea of the other person "tainting" the bike by riding it poorly which we all have when we think about a bike we haven't seen the previous rider of so the buyer is always wanting to pay way less and the seller wants what they paid back.

Oncoming car turned straight across into side road without seeing me, no time to stop - i started emergency braking as soon as I saw him start turning - 100% his fault already agreed by everyone.

Repair bill is $13,000