(Last Modified on: June 11, 2019)
There is no doubt that the value of every vehicle depreciates dramatically. But this gets awful after your vehicle gets smashed in an accident. Even if it is insured, the damage from the accident can significantly lower down the car value. Often people need to sell their broken or totalled cars for cash. However, it is challenging to find someone who can pay fair price for a vehicle that is accident damage. So it is important to know the options through which you can earn a generous price even for a damaged vehicle.
Remember a vehicle’s worth cannot be reversed once it starts to depreciate. So it is necessary to understand how accidents affect vehicle’s value.
The answer to this question is complicated. However, the most common reason is that every vehicle gets badly smashed after an accident. It makes their appearance worse and it is not able to operate well. Whether a car gets damaged due to a minor dent, wrecked front end, shattered window or entirely totalled. It will lose a significant part of its resale value after being smashed.
Of course, you can use your insurance cover to repair the damage. But it won’t help you to get rid of depreciation in it’s worth. You will still see a drop in the value of the car. But you can get it fixed using right tools and equipment’s. You can command good price for all used components, if they are not damaged in any way.
When you will take this vehicle to the repair expert. They will check its history report. This way you can easily check the automobile’s condition. If you try to sell your vehicle with different make, model or year. Another important factor is to see an escalating rise in the premiums.
Sure, you will want to know the vehicle’s condition after an accident. Sometimes the damage can totally change the appearance of vehicle. After such terrible events it becomes really challenging to figure out the rate of depreciation of an automobile. You can better understand it after knowing the term “Normal Car Depreciation”.
When you buy a vehicle and drive it home from the car lot, it loses up to 20% or more of its worth. This rate of depreciation continues during the first year of use. The basic factors like vehicle’s make and model also influence the depreciation rate. As most luxury brands depreciate less than those manufactured by domestic brands.
Furthermore, a vehicle tends to lose 40% to 55% of its value within the first three years of operation. Obviously you can lower this rate by proper upkeep and maintenance of automobile. On average a car loses 10% to 15% of its worth during five years of service. You can say that after 5 years it will hold only 35% to 50% of its new value.
But after a vehicle get damaged in an accident the rate of depreciation drops drastically. With a bad history report you can definitely not command a good resale value for it. You can use several online tools like car depreciation calculator, in order to know it worth after accident. If you find that it is not drivable, then you must better figure out it scrap value.
If your vehicle has stopped working after being damaged in a collision, it will be hard to sell. As you may be hardly able to find anyone ready to buy it for a generous price. Moreover, it won’t be safe to use a broken vehicle on road. Luckily, Taha Car Buyers can help you to get out of this troublesome period. That’s because we buy junk and totalled automobiles for a fair price deal. Isn’t this a good news?
You can now sell your accident damage vehicle as-is. Contact us to get an obligation free cash offer. Call now @ 0800 113 136.