When your car is the unfortunate recipient of the kind of bad luck that results in a road accident, the vehicle in question will not be the same, ever. The main way that this will be true is in the value of the vehicle. Sure, cars depreciate over time, but one thing that will accelerate this process the most is a car crash. This is what makes people sell their mangled wrecks to vehicle wrecking companies.
How Do You Calculate the Diminished Value of Your Car?
You may be wondering how much exactly a car’s value is decreased as the result of an accident. And you will also be assuming that the answer is “it depends,” as there is a wide variety of accident types and their corresponding levels of damage. That is what makes it a very hard question to provide an answer to. But we shall try.
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What Causes a Vehicle to Depreciate after a Road Accident?
If you have had a minor ding, your car will drop in value simply because it now looks worse. The resale value of any automobile is affected by many different things, but the most obvious is what it looks like. And the effect will still be present even after getting the appropriate repairs done to fix the said dent. The amount of money your car is worth will have taken a permanent hit, so even after you gain a bit of it back by getting dents and scratches fixed, it will still be worth substantially less.
What if Damage is more than Car is Worth?
Why does your car keep a lot of the depreciation that comes from a car accident even though it has been totally repaired? Because of the history of the vehicle. All cars have a history, and it goes toward what your car is worth. Even though your car is fixed, it is now a car that has been in an accident. If your car was on sale alongside a vehicle of identical make, model, and age, but yours is the only one with an accident in history, the other car will be worth more than yours.
Normal Depreciation Rates vs Post-Accident Depreciation
A huge chunk of depreciation occurs the moment the vehicle is first purchased and driven out of the car dealership. This will be up to or over twenty per cent of depreciation. It is important for you to realise that this isn’t because of you. It is merely the fact that the vehicle will not be brand new ever again, making it worth twenty per cent or less than it was.
The next three years of ownership will see that automobile drop even further in value. It can be a drop of 40 to 50 per cent. The level of care and maintenance that you lavish your vehicle within that time will have an influence on this. Once the car has been in service for five years, the rate of depreciation your car is experiencing will undergo a slowdown. You can expect a vehicle that is five years old to have lost over half of its value.
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How Much a Car is Worth Once it has been in an Accident?
Take a car that is five years old, and has been in an accident. You can be fairly confident that it has lost much more than the amount mentioned above. Without the accident, we are talking about a fifty per cent loss of value. With the accident, it can be up to seventy per cent. What impacts this figure? How old the car was and what condition it was in before the accident and what condition it was in afterwards. This means that what kind of accident it was, to begin with also counts, along with how good or complete the repairs were.
How Much Did You Get For Diminished Value?
There are online calculators that specialise in calculating car depreciation. But they aren’t any good at telling how much accident damage has occurred. If your vehicle was totalled, it won’t be depreciation we are talking about. You will be looking at how much it is worth as a scrap car. You can find that out with great ease by contacting an auto wrecking company and getting a free quote.
Why Car Depreciation is a Big Problem
When a vehicle loses value, it isn’t the main issue that folk normally have. They will be annoyed at the fact that their vehicle isn’t operational, or that the vehicle is now incredibly hard to sell, or at least sell for the best amount of money. When a vehicle is unsafe to be on the road and will put a serious dent in the bank account in order to drive again, there may be a different solution.
Don’t go thinking that it involves selling it privately. This is the worst way to sell a broken down vehicle. It requires you to think outside the square. The average person looking to buy a vehicle on the private market wants to buy one that is in running order. They desire the ability to drive it straight away. Sure, there are people looking for cars to take apart and sell the components individually. But they are so rare that you will be waiting for a few months at the least.
Sell Your Vehicle to a Wrecker
If your car is going to cost too much to get fixed relative to how much it was worth before the accident, there is a solution. All you need to do is go online and find an auto wrecking company in your area. They are the kind of company that buys the cars that no-one else wants.
When it comes to selling a car fast, this is the answer. You will be able to sell your vehicle within the space of one day. This is virtually unheard of in the world of selling scrap cars. And the company won’t low-ball you. The car may have been in any kind of crash, and be in any condition at all. You will get a good payout for it. And you know it will be recycled for the good of the environment.