How to Trade in a Car That Has Been Wrecked Before

You can trade in a car that has been in an accident.

You can trade in a car that has previously been in an accident, as long as the vehicle is not totaled. Dealerships appraise possible trade-ins and have a process in place for determining whether or not a car has been in an accident. Some may run a vehicle history report, while some use professional experience to judge overall condition of the car, including body damage that needs fixing, and previous body work that is complete. Be honest about your vehicle if asked.

Instructions

1. Review your car title and other paperwork. A vehicle that has a salvage title is not often worthy of trade, but this depends solely on the dealer. Gather any insurance paperwork with an explanation of cost and damages to your vehicle, or if you paid cash, find the paperwork. The dealer may ask you the cost of damage on your car and you should tell the truth, as you expect the dealer to do the same about the vehicle you are buying. Run a vehicle history report on your own vehicle before entering the dealer by following the link in the resource section of this page. A clean history is preferable, but you may find out that your vehicle was in an accident before you bought it. You will suffer the financial consequence of all accidents.

2. Research popular internet appraisal guides to determine your vehicle's worth. Use more than one guide---no two are the same. Be sure to check "trade-in value" as your option, and even if your vehicle is properly fixed, it is not considered "excellent" condition. Use the "fair" option or less for a fair appraisal expectation. After checking both guides, you should have a general idea of what you can expect a dealer to pay for your car and negotiate accordingly.

3. Allow the dealer to appraise your vehicle to determine its trade-in value and also answer any questions the dealer asks you regarding your car. The dealer will ask you if you are the original owner and if your vehicle has ever been in an accident. Some dealers may not ask you this, and if not, it is at your discretion whether or not to tell. Someone will take your vehicle for a drive to judge overall mechanical condition and walk around the car completely to determine whether there is any previous damage. If you have unfixed damage to your vehicle, you can still trade the car. The dealer will estimate necessary costs for repair and deduct it from your trade-in value. The dealer may also run a vehicle history report, which shows whether the vehicle has been in an accident, and how many times. Some dealers do not do any of this, if too busy or if they skip important steps.

4. Agree on a trade-in figure and complete your paperwork. Decide if the dealer's figure is acceptable and once it is, go over cost of the vehicle you are purchasing minus the amount of your trade, plus a pay-off if you still owe money on the trade. Sign all paperwork for the new car, and sign your title to release ownership of your trade-in.

References

• MSN Money: Your car will never be the same after an accident

Resources

• Edmunds: Used Car Appraiser
• Kelley Blue Book: Used Car Values
• CARFAX: Vehicle History Reports and VIN Check