I think you're referring to diminishment of value. It's the view of some people that a vehicle that has been damaged and repaired is worth less then an identical vehicle that has never been damaged and repaired. Or that your damaged and repaired vehicle now has a depreciated (lower)value.
If it had the proper repairs done to it(correctly), there should be some difference but not a huge amount. Most consumers would buy the same exact car without damages for a little higher price, than buying the one that had damages to it. That's a big part of the value difference. IT ALL DEPENDS ON THE YEAR, MAKE AND MODEL OF THE VEHICLE!
If it is a new car then your dealing with more than just value loss from the accident. All of you have heard this before, but it is IMPORTANT THAT YOU PURCHASE GAP COVERAGE ON A NEW VEHICLE! Why..... this will cover some of the value difference right off the lot. Vehicles usually lose value faster at the beginning of the loan.
GAP insurance does not have anything to do with repairs. It only provides coverage when the vehicle is a total loss and the amount owed on the loan is more then the insurance company is paying.
No one was saying that repairs had anything to do with GAP. It was a separate paragraph just stating that it should be purchased when buying a new car.
THANKS!
AGENT CLINT
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No one was saying that repairs had anything to do with GAP. It was a separate paragraph just stating that it should be purchased when buying a new car.
If it had the proper repairs done to it(correctly), there should be some difference but not a huge amount.
I disagree with this statement, there in no way ''should'' be some difference in the vehicles ACV post repair...is there some times yeah, but not all, not even a small percentage, in fact, more times than not a collision repair will actually increase the value...let me explain..(and no one charges the insured for this...don't start on betterment, that's a different topic all together, and not what I'm talking about)....Let's say you had some minor, slid marks, or gouges/scratches in your bumper cover, or deck lid, then you are hit, and these parts must be replaced....well, no more scratches/gouges etc...so your vehicle now looks better than before... _________________ Register Now to have your Insurance queries solved.
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Posted: Fri Feb 01, 2008 9:32 pm Post subject: Lori have to disagree with you
Quote:
I disagree with this statement, there in no way ''should'' be some difference in the vehicles ACV post repair...is there some times yeah, but not all, not even a small percentage, in fact, more times than not a collision repair will actually increase the value...let me explain..(and no one charges the insured for this
In 20 odd years in the auto business I never saw any type of "repaired" vehicle worth more than one that had not be in even a fender bender. Very few auto shops can repair even a fender bender where an experience car dealer appraiser will not notice and they always deduct for any type of body repair. The only one who makes out often times on this is the dealer. Because as you say, the repair will often times make the auto look better than it was before. The dealer will deduct from his appraisal of the auto for having "body work" and often times will use this as a way of justifying his lower than expected price he is offering for a customers vehicle, but then once placed on the lot will be sold as if it had never been in an accident.
Most states have laws on the dollar amount of damage a vehicle must sustain before the dealer has to legally disclose the info. Therefore on these types of repairs, the owner will suffer a hit from the dealer and then the new buyer will pay a premium for a super clean nice car.
Or at least that's the way it work at any dealership I ever worked at and I have appraised, traded for an purchased at auction many, many damaged vehicles from fender benders to totals.
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