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Do some investigating on the comparable vehicle sheet. Ask them for it if you don't have it yet. I did some investigating on mine, and the least valued of the two comparable Insights was an ugly pink and white wrapped Insight from a hospital, with a nonworking transmission, electrical problems, and an oil starved engine, bought from a salvage auction.
Your car had both a "good" transmission without grinding i assume, and a good battery. Your comparable vehicles may have an ima light and grinding transmission which is common. If thats the case, they need to positively adjust the value of that car (or take it off the list), and so your average will be higher. These will then be adjusted by miles and year to get a value on your car.
Honestly, an Insight in good condition should go for no less than $3,000 from a dealer, more typically $3,500. Anything valued under $3,000 is a car with IMA or transmission issues.
And i would also argue with them about the salvage value. Try to get it a little lower.
And since you have a second car, you can take more time with them.
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I try to be helpful. I'm not an expert.
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