You’re in the market for a new ride, and negotiating is nearly a requirement. When you first check out a car, make sure you get the full vehicle report. If the vehicle was in an accident—even if it was “just” a fender bender—there’s diminished value. That means that the car isn’t worth the blue book price, even if it was completely repaired.
Let’s say that the vehicle was in a small parking lot accident. The bumper was dented but has been replaced. That’s good news for you. It still has diminished value, even if the entire part that was damaged has been replaced.
The reason for this is simple, repair shops do what makes the insurance company happy and not the car owner. They may very well have repaired the vehicle to its pre-loss condition, but that’s the exception, not the rule. So, value standards companies discount value based on the standard practices.
Quick Plug for Independent Car Inspection
A good inspection service like our sponsor, Tire Kickers, will help establish a car’s true value along with verifying it’s safety. By examining the cars history for you, along with what similar cars have sold for nearby, and the actual condition of the vehicle they can give you a true value to use as a club during negotiations.
Your Opening Argument
You might not know about diminished value claims, and the seller might not either. Many insurance policies actually have a diminished value claim as an option, but they don’t advertise it. When you’re in an accident, you can file this claim in order to make up for the loss of value. There’s usually no time limit for filing this claim.
You might have to educate the seller a little. They can still file that claim, even when they’re about to sell. This way, you can pay less for the car and the seller still gets the money. It’s a win-win situation for both of you, but this isn’t always a possibility since their policy might not have the option.
Get the Facts
You should have the full vehicle report and a 150-point inspection before purchasing a car. If you’re considering a classic or collector car, a specialty inspection is in order. You need to consider the dollar value loss that an accident caused. Whether or not the car was repaired doesn’t matter.
You’ll be the one dealing with the diminished value when and if you sell the car. You weren’t the one in the accident. It’s not fair that you’ll be taking the loss down the road. The seller might not think it’s fair, but nobody can argue with an inspector’s bottom line.
Is it a Smart Move?
You need to decide if it’s a good decision to purchase a vehicle that’s been in an accident. The car will always have a diminished value. However, you also have to consider safety. It’s generally accepted that cars that have been in a collision might not be as safe.
Consider the accident, where the car was impacted and decide wisely. Remember that it’s not just your money that’s on the line, but also the safety of yourself and your passengers. You might be able to score a great deal on a car with diminished value. However, just make sure that it’s still up to snuff in the safety department.