How Do Car Accidents Impact a Vehicle’s Value?
If your vehicle was the only thing damaged by a car accident you are very fortunate. However, there are still unanswered questions that must be considered. After all the insurance and repair dust has settled, the question of “how will this affect my car’s value?” is often left lingering in the air as an afterthought. Auto Depot Sudbury has some insight for you if you or someone you know becomes faced with this question.
What Actually Makes a Difference?
A number of factors must be considered when determining your vehicle’s value post-accident. Aside from the obvious circumstances, your vehicle’s make, model, year, market value (local and overall), and any additional costs accrued can all make a big difference when it comes to calculating its new value—calculating being the optimal term. Let’s go over the most significant factors when determining value lost by using the 17c Diminished Value Formula.
The 17c Diminished Value Formula
This formula can serve as a quick and easy way of roughly estimating your vehicle’s new value after an accident or collision. Keep in mind, the best way to do this will always be speaking with your insurance provider and the experts from your preferred dealership. The 17c formula is only a place to start. Your insurance provider will have a more sophisticated and detailed version of this equation.
The 17c formula = Base Loss of Value (10%) x Damage Modifier x Mileage Modifier
In other words, you must factor in an automatic 10% drop, the damage, and the current mileage of the affected vehicle. Your Base Loss of Value can be found through the Kelley Blue Book Canada. Keep reading for more information about your Damage Modifier and Mileage Modifier.
Damage Modifier – Type & Extent of the Damage
Obviously, the greater the damage the higher the modifier, and therefore, the drop in value. Small dents and scratches will not diminish your vehicle’s value like internal or structural damage can. You can count on mechanical component damage to run the highest numbers since these types of repairs are the most costly.
Mileage Modifier – Age & Demand of the Vehicle
The younger vehicle can maintain a higher value after an accident even if the damage is more significant or obvious. Buyers and traders are more willing to eat the cost of repairs if they’ll be getting a newer car that will likely be with them longer in the end. The same goes for more popular models. Fewer miles usually means better post-accident value.
Again, the 17c formula is just a starting point. There are dozens of factors that go into calculating your vehicle’s exact value after an accident. The very best way to determine this new number is by consulting your insurance and dealership professionals. If your vehicle has sustained some damage due to an accident or collision, come speak to one of our service experts at Auto Depot Sudbury. Dealing with the aftermath of a car accident can be extremely stressful. Let us help!