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How an Accident Affects The Resale Value of your Car

Even little damage can reduce the value of your vehicle. Dents and scrapes, if not corrected, can make your car appear outdated and unsightly. Even if you obtain the greatest auto body restoration and the automobile is returned to like-new condition, the damage can compromise the vehicle’s structural integrity.

The dealership will run a vehicle history report using the VIN when you sell or trade your car. It would appear on the report if you filed a police report or a claim with your insurance company. Any damage can reduce the value of your vehicle. Before we talk about the several factors that determine the amount by which the value is reduced, let’s tell you the role of hiring a skilled lawyer for your case.

How can an Attorney help you?

If you decide to file a claim against the person who was at fault in your car accident, Gainesville car accident lawyer, Steve Bagen, tells us “the first step you should take is to find a car accident lawyer near you. One that has a lot of great reviews, is experienced in your area’s laws, and isn’t afraid to show you their track record.”

You may not be aware that you can also include the amount of money you would lose on the trade-in value of your vehicle due to the accident. Some defense attorneys argue that their clients should not be required to pay for this, which is why it is important to have a good attorney on your side .

Factors that are considered while calculating the resale value of your car includes- 

1. The type of Damage

Surface damage will have the least influence on the value of your vehicle. That includes scratches and minor dents to simply the bumpers or panels. Damage to the car’s internal structures will have a greater influence on its value. Damage to the engine, transmission or other mechanical components adversely impacts the value.

Even if you do not record your accident or make an insurance claim for the damage, structural and mechanical damage will be revealed during an inspection, and you will be offered a lower trade-in or sale price.

2. Repairs of High Quality

Naturally, the quality of the repairs has a significant impact on the value of your vehicle. You can keep your car worth more by having the best auto body repair. Repairs should be performed by factory specifications, using factory parts whenever possible. The repairs should be invisible. Anyone looking at the car should not be able to see where repairs have been made. The repairs should also protect or restore the car’s structural integrity. Typically, your insurance carrier will select approved body shops for the repairs. 

3. Car Model and Year

If your car suffers minimal damage, it may keep more of its worth if it is a newer model or a popular model. The benefit of having low mileage or being in high demand will partially offset the value loss from the damages. 

Dealers will give you more even if the car has been damaged since they know the car is in demand and more consumers are interested. They anticipate selling the car sooner and for more money; therefore, they will pass some of that value on to you.

Recovering Value

There are a few things you can take to recover part of the value of your car after an accident. Choosing the best auto body repair is one of the best things you can do since it offers high-quality service that can restore the appearance of your automobile and maintain its performance for many more years.

You may have some recourse with your insurance company. Most insurance companies will write you a payment for the cost of repairing your car. However, they do not consider the loss of your car’s value in their estimate. This is a mistake because your car could lose hundreds of dollars following an accident.

You can settle the value loss with your insurance company. If the agent is unwilling to agree, you can seek the advice of an attorney. You could sue for that amount. This may appear to be an extreme move, but it may be worthwhile when it comes to thousands of dollars.

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