A car accident not only affects its physical appearance but also dents its market value. While taking it for a professional repair may enhance its external outlook, its market value remains low. Hence, a car that has been in a crash will always have a lower value than one without such a history.
In case you want to trade in or sell your car, it is crucial to know the elements that determine its depreciation after a crash. Many elements apply when determining the level of depreciation after a collision. Assessing them can be vital when determining a car’s post-accident value.
Here are the key factors that can impact a car’s depreciation after an accident.
Degree of Damage
Crashes have different impacts on physical and market value. While all crashes cause depreciation, they are not the same. Small crashes cause less damage, while significant ones can result in more damage. If the damage is extreme, it is more likely to cause significant depreciation, irrespective of repairs done.
Age and Mileage
The newer the car, the more it will depreciate after a crash because it is still highly valuable. On the contrary, older cars already have less value because of regular use, so a crash doesn’t affect them much.
Quality of Repairs
Where, who, and how the car is repaired after a crash determines its performance and perception in the market. Hiring a certified professional not only increases the likelihood of improving its physical appearance but also preserves the market value.
Rushing to fix it immediately after the crash increases the likelihood of visible imperfections. Rectifying such mistakes can be costly and time-consuming. Instead, taking time to find the right person for the job can salvage the situation.
Kind of Crash
The type of crash influences the depreciation rate. A side collision may cause more damage than a low-speed collision. Cosmetic issues cause less depreciation compared to airbag deployment or engine intrusion.
Number of Owners
Buyers are wary of buying cars that have had many owners. They view having many owners as a sign of damage and risks. A vehicle with many owners has a lower market value than the one with one or two owners.
Vehicle Model
Specialty and luxury vehicles suffer a greater loss after accidents. Shoppers inspect them to ensure that they are in perfect condition before buying to shield them from depreciation. However, other brands take less of a hit, especially if the crash had a minor impact.
Car History Records
Buyers look at accident reports before purchasing second-hand vehicles. They can change their minds about buying your car if the report shows severe damage, even if the repair was done correctly. They rely on the reports to gauge a vehicle’s performance, and any indication of a crash can lower demands.
Market Conditions
The current state of the market determines the value of the car. If the demand is high, buyers may ignore the crash history and buy the car at a high price. However, if the demand is low and inventory is high, fewer people will express interest in your car.
Title Report
A crash that leads to remodeling of the title weakens the market value. Such titles show that the car is a total loss following a collision despite repairs. Shoppers are skeptical about such models, and the market value drops by over 50%. They prefer cars without any remodeling history to risking the ones with such.
Overall Condition
The general condition of the car also matters. A vehicle that is adequately maintained is easy to spot and retains its value for longer. A repair cannot hide years of neglect from shrewd buyers, as they will identify dents and imperfections left on the surface.
(DISCLAIMER: The information in this article does not necessarily reflect the views of The Global Hues. We make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this article.)
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