Vehicle Depreciation After a Car Accident-How to Minimize It
Minimizing Vehicle Depreciation Tip #1: Understand the Process
You can’t change the fact that your car’s value will depreciate after an accident. However, understanding this process will make the process a lot less painful. The first fact you need to accept:
Even if you have your vehicle repaired by a qualified body shop right and there isn’t any sign of damage, your car won’t bring the same resale value as it did before. Thinking of hiding it. That’s not always possible either. The accident will be recorded on a Carfax report, which most buyers will request before buying.
Which leads to this question: by how much does a vehicle depreciate after a car accident? This is a number known only by the insurance company and of course, it varies depending on vehicle factors. But in general, the depreciation percentage averages around 30 percent.
This might sound steep, but when you consider the fact that your car depreciates by 11% when you drive off of the lot, the stakes are even higher. Regardless, there are ways to mitigate this drop in value. The first, fixing your vehicle right away and by the right shop.
Minimizing Vehicle Depreciation Tip #2: Have The Damage Fixed With Quality Parts
After an accident, you’ll do one of two things—pay a deductible and have your insurance company pay for the repairs to your vehicle or pay for the repairs yourself. Either way, it can be tempting to skimp on repairs or buy cheaper parts as a way to cut down on costs. After all, your first priority will probably be to get back on the road again. This is understandable, but still a costly mistake.
Having your car repaired by a ‘shade tree’ mechanic or an auto body shop that uses low-quality parts might save you now. However, it will cost you down the road when it’s time to resale. On the flip side, choosing a reputable auto body shop that uses OEM parts will help minimize vehicle depreciation. When trading your car in or talking to potential buyers, you’ll have proof that your car has been restored to pre-accident condition.