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Dealerships Deal With Hail Damaged Cars

June 10, 2014, 10:10 PM by Angela Kennecke

Dealerships Deal With Hail Damaged Cars
SIOUX FALLS, SD -

Thousands of cars were hit with hail damage in last week's storm, and many of them are on dealer lots. 

Car dealers throughout the city have been assessing the damage that will no doubt lead to "hail sales," but at least one dealer says his business doesn't come out ahead after Mother Nature strikes. 

They're lined up along Minnesota Avenue, car after car sitting in dealer lots with hail damage. 

"As you can see, there are so many little ones across the top," Brad Dumdie, Autoland owner, said.

40 of the cars on his Minnesota Avenue lot were hit. He's been selling cars for 12 years and last year was the first time he had hail damage on his lot. 

"This year we changed it up a little bit. As soon as we saw the hail coming, I filed my claim and I was the first one in. Our adjuster has already been here and a good portion of the cars are already repaired. We got on it right away," Dumdie said.

Acting fast is important to keeping enough cars for sale. Dumdie says most of his vehicles will be repaired.

"Once in a while if we get one that's really, really bad and I don't want to go through the repair. It's a lot of money we will either discount that and sell it the way it is or take it to auction and get rid of it," Dumdie said.

"We might get it fixed. We're kind of deciding whether we want to or not," Schindling said.

Kayla and Kyle Schindling have $5,000 worth of damage to their vehicle from the hail storm. They're driving through car lots, looking at getting something different and to possibly take advantage of a "hail sale."

“Most likely we probably wouldn't buy with hail damage, unless the deal was more than what we'd pay for our car to get this replaced," Schindling said.

It's possible to save a lot of money on a badly damaged vehicle. 

"On some of these that have really been pounded, if they're not repaired it could be in the thousands you would save. But if you've got to get them repaired, you're probably going to eat up all that money," Dumdie said.

Dumdie says the hail-damaged cars that have been repaired may get marked down a few hundred dollars. In the meantime, all dealers are expecting their insurance premiums to rise. 

"We've been fortunate for so long, let's hope the next 20 years are without hail," Dumdie said.

If you make an insurance claim for hail damage on your car, companies won't raise your rates as an individual. But we can all expect to pay more for insurance as insurers recoup their losses.

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