Vehicle depreciation due to accident

Just for the sake of discussion, why do you feel that the accident has depreciated the value of the car? Was this repair not done correctly? I've sold vehicles where similar accident occured (e.g. bumper and minor hood damage). The repair was done perfectly and when the car sold, no reduction in value occured.

However, hypothetically if this were true (value reduced), no lawyer would be able to convince a judge to award you the $$$ difference from the person who caused the accident. If you doubt this, ask a decent lawyer.

I am anticipating this answer from the dealership where I intend to trade the car. The repairs were done by the best (and most expensive) shop around - recommended by the dealer from which I bought the car. So I have no doubt in the repairs. This is really about the stigma of the "wrecked" car. I plan on taking it to a dealership this weekend to ask them what they will trade for it. I only hope I don't have to go the route of a lawsuit to bridge any lost value.

Firstly, if you trade this (or any) vehicle into a dealership, you'll lose approx. 25% more than if you sold it privately. A car with a $40,000 value will trade for $30,000; wheras, if you sell it to a private party, you might get $35,000. I have a friend with a fairly new hi-end Lexus who experienced this. It's just a fact of life.

A "wrecked car" is a whole lot different than a car with a minor accident. Tiis car was not totalled nor does it have frame damage, right? Can you see a difference in the paint -- a mismatch?

As I wrote before, it's doubtless you'd be able to find a judge who will accept the case and grant you reimbursement. That would be a recipe for a case that would drag on in the court system for years.

My approach would be to sell the car privately and hope for the best. Cars always depreciate their value rapidly unless they're classic or antiques. If you had an accident, and there's no framw damage and the body work is 100% repaired with no cosmetic flaws, then things should work out reasonably as long as you aren't dealing with a dealer. However, if the paint is mismatched, then you have an issue with body shop.

I just researched my numbers..so I was off-base a bit earlier with my off-the-cuff guesses on dealer's retail vs trade-in values.

According to current Kelly Blue Book values, an '08 BMW X6 would sell for $59,000 to $66,000 RETAIL, depending on 6 cyl or V- 8 engine options and equipment or if turbocharged.

ok...so, taking as an example, a sale at a dealer's used lot in a town in hypothetical So. Calif., for an 2008 BMW 8 X6, 6cyl, 35i 3.0 L Twin Turbo SUV 4D, with a typical 13k miles on the odometer, said retail would be $64, 825 with typical options. That, of course, assumes this car to be in excellent condition.

I understand the feeling of what it's like to have a gorgeous luxury car that you feel was 'violated". However, if the thought of taking this big loss $$$ return is that galling , I'd just keep the car.
This same vehicle in a trade-in from the dealer, would sell for $58,700.

however, the important facts here are that the car reflects an excellent conidtion. A car that has minor body work and still looks excellent and drives like a typical new used car of that vintage, should sell for a premium on the market.

Excellent condition according to Kelly Blue Book is one which reflects the top 5% of cars of its vintage. This does not neccesarily exclude one that has had some body work.

A smooth talking car salesman who wants to sell your car may try to tell you the car has depreciated because of the accident. This way he can make more money off it. I have never purchased a new car because they depreciate like mad the moment you drive it off the showroom floor, accident or not. Cars are a necessity, not an investment.

I agree with Nick. The depreciation once you are off the lot is large, and this accident is small. Something is fishy in Denmark.

If the repairs were done correctly, then the accident should not affect the resale value of the car.

Still, one of the credit reporting agencies - Experian, I believe offers a service reporting accidents and place of last registration when you plug in the vin #. Someone thinks accident history has meaning.

That's why I specified "if the repairs are done correctly."

There are also a lot of cars out there that have been "totaled" by the insurance, then just enough work done to make 'em drivable.

You're referring to Carfax - an online service available to anyone who is buying a used car and requests the report. I've personally been using it to help friends research used cars for about 4-5 years now. It shows when and where the car has been registered (at what mileage and dates), if it's been a leased car or priv party, and often shows major service and potentially if there's been 'big" crashes. If the car has turned over ownership it registers histories of each time and what mileage.

The underlying purpose and spirit of this Carfax service is to prevent totaled cars from resurfacing and lemon prevention. It also can indicate whether or not the car mfr has issued a recall and whether a car has been serviced for that recall.

Again, minor properly repaired accidents should not be a concern and may not even show up on Carfax.

the answer is here:
http://www.autoappraisal.com/value.htm

http://www.bankrate.com/brm/news/insurance/20031201a1.asp

With the exception of the last poster, I don't think anyone else actually read my statements. I am well-aware that depreciation occurs on a car after being purchased. It is another matter entirely when a person causes depreciation because he or she damages my vehicle. Regardless of the repairs done, there is a permanent blemish on the vehicle's history that cannot be repaird away or corrected. This negatively affects the value of the car and decreases the chances of selling it or trading it. Add to this that the specific car is a high-end luxury car and it becomes more of a mess. The people who spend $60,000 on a car are MUCH MUCH MUCH less likely to purchase a car that has had an accident regardless of the repaired condition. When spending that much money on a car, people tend to be meticulous. The bottom line is that the other driver caused a depreciation on the value of my car by striking it. I do not feel that it should foot the bill for her carelessness.

Oh, good grief.

Boopsie has a good car and she'll make you pay.
This is all a construct.

Lawsuit?

This is a rolling lawsuit factory.

i'm glad it was not hail damage.

god's lawyers are a bitch...

Well, call the waaaaaaaambulance. If you don't want to risk damage to your car, then don't drive it.

You were in an accident, you recovered the damages, now move on.

Yes.

It depends on your jurisdiction, whether you've settled the auto claim, who the involved insurers are.

The effect of minor damage/repair is minor in comparison to the effect (on car value) to simply driving the car off the lot when you pick it up (with a few specific exceptions).

Oy. You'd spend an awful lot of money on a lawyer to tell you, that you can't fault someone else for depreciation of a vehicle. How much of the depreciated value was caused by driving the vehicle off the lot? How much depreciation occured in 'normal' use of the vehicle for the period of time you had it? Going to spend more money figuring out and PROVING the depreciated value was due to the accident rather than the many other factors that determine a car's true actual cash value after an accident.

You can find out what your car value is before going to the dealer and discussing the trade in with the dealer. You don't have to accept what they are willing to give you. Negotiate. They WILL low ball you because there is plethora of used vehicles out on the market right now. Many people prefer to sell the vehicle to a private buyer in order to get more for their trade in.

www.kellybluebook.com is a good place to start.