Does a Wreck Depreciate the Resale of a Vehicle?
Whether or not a wreck increases your car's depreciation depends on the severity of the accident and the extent of repairs you needed to make the car operable again. If your buyer notices the body work or runs a history report, you may have to sell the car for less than its suggested private resale value.
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The Extent of Damage
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Vehicle history reports show buyers the type of accident you've had. For example, if you rear-ended someone at a stop light or rolled your vehicle over, the police report and a brief description of the accident are readily available. Bumper damage isn't likely to warrant a lower price, but extensive body work for a side impact, for example, suggests safety or reliability issues. Having more than one minor accident might also concern buyers. If your accident was minor, save your receipts to provide proof that damages weren't serious.
Advertising the Vehicle for Sale
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You don't have to advertise that your vehicle was involved in an accident when selling your car. Expect buyers to ask, though. If you advertise your vehicle for sale online, you'll receive inquiries about the car's accident, service and title history. Answer questions honestly. If the buyer purchases a history report, he'll see information about the accident, so try not to waste anyone's time. Don't accept offers through email. If your vehicle had minor repairs or its body work was done professionally, your vehicle will likely warrant a higher price.
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Dealing with Buyer Concerns
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If your vehicle was in a serious accident and you're trying to sell it immediately after repairs, you might not prove to a buyer that the car was repaired to perfect condition. If you recently found that your second-hand vehicle was in an accident prior to your purchase and are trying to resell it years later, use this to your advantage. Explain that you weren't aware of the accident and never had any problems with the vehicle. If you have to accept a lower offer, check your vehicle's "fair" private resale value to determine the right selling price. If your vehicle was already in poor condition, you might not lose money.
Considerations
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If you plan to keep your vehicle, the depreciated cost of the vehicle won't affect you. Some buyers won't inquire about accident history, so you might not lose any of the vehicle's value. If you believe your car deserves its full asking price, consider having a mechanic check the vehicle over and have him write a report of any services he recommends. You'll save the buyer time and money while proving that your vehicle is safe and doesn't require further repairs.
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