If you’ve been in a recent auto accident that wasn’t your fault, you may be in for a rude awakening when you attempt to sell or trade in your car. This article helps to inform you about the unexpected nightmare when you learn about the impact on your car’s value and how to mitigate and recover your losses.
Because your car now has an accident history, you could be in for a diminished value nightmare – the shock you’ll feel when you discover that potential car buyers are unwilling to pay you the same amount that they would for a similar car without an accident history.
Thankfully, you’ve discovered ACIS PRO. We’re a nationwide appraisal group of certified appraisers and industry experts. Our team, with its extensive knowledge and experience, is dedicated to helping you identify and recover the ‘accelerated’ diminished value of your car due to the accident. You can trust that we’ll confidently guide you through the process, ensuring you recoup the loss in value you deserve.
First signs of a problem
Your unexpected problem begins with a diminished value surprise. It starts when your accident is reported to CARFAX or Experian Auto Check. The companies mentioned are leading publishers of vehicle history reports, and when they learn about your accident, they’ll add this to their reports. This action notifies potential buyers and car dealers about your unfortunate auto accident, and they’ll have a compelling argument for not paying the same amount that they would for a similar vehicle without an accident history.
When potential buyers are faced with a choice, they often opt for a car without a vehicle accident history over yours. Many will immediately remove your vehicle from their shopping list and move on to another car. The few who remain interested will likely demand a significant discount to compensate for the perceived risks of buying your vehicle. This stark reality underscores the urgency of addressing the diminished value of your car.
Like the plague, car dealers will avoid your vehicle altogether—especially if it was involved in a serious accident involving structural or frame damage and the deployment of your vehicle’s airbag restraint system. They may have liability concerns that your car might not perform safely in a future collision, and they might get sued if it is in an accident.
Auto dealers willing to accept your vehicle will reduce your trade-in offer by thousands of dollars. They justify this by knowing the difficulty they will have with potential buyers, who will haggle on price and expect a significant discount to buy it from them.
Ultimately, auto wholesalers can uncover your vehicle’s accident history, even if it is not listed in the CARFAX report. They excel at identifying accident repair history and possess tools that measure the difference between the thickness of factory-installed paint and non-factory paint applied after an accident.
What are your options?
You don’t have to accept the financial shortfall caused by your accident. You can take the necessary steps to recover your losses and restore your car’s value.
If the damage was minor, take good photos and keep records of the repairs to help mitigate the potential diminished value. That will help you ease some of the concerns of potential buyers of your vehicle. Suppose the damage was anything other than very minor, such as a significant unibody frame or a major mechanical issue. In that case, the first step is to order a diminished value appraisal report. This report will provide a professional assessment of the diminished value of your car, which you can then use to demand payment from the insurance company of the driver at fault in the accident.
After your diminished value recovery, you can further reduce your losses by holding onto your car as long as possible. This strategy can help reduce your diminished value loss over time due to a familiar concept called ‘amortization ‘. This is the gradual reduction of an asset’s value over time, a common occurrence with cars. Because buyers in the market for an older car generally have lower expectations, you can monetarily mitigate the loss of its value by keeping your vehicle for an extended period.
Don’t wait to act. The sooner you take action to pursue your car’s loss of value, the better your chances of success. Whether you choose to recover your losses independently or seek our assistance, don’t delay. Act now to start the journey of financial recovery of your car’s diminished value. Remember, time is of the essence in this process.
