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How much is an OEM lip?
If he is really dead set on settling outside of ICBC, i'd start at that cost.
If it comes unpainted, double that cost.
The only reason I say this is because it sounds like you want to avoid respraying the back of the car if you can. Which makes sense to me. You've got a car with immaculate factory paint, I wouldn't want to mess with that either. From the looks of the picture, the damage looks minor and I can't imagine underneath is anything different, impact seemed minor.
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