Content

• Steps
• Warnings

If your car has been damaged in an accident and the results of the repair do not hide flaws, then such "proof of repair" can negatively affect the value of your car if you decide to sell it or change the terms of the loan in the future. This concept is known as depreciation. However, even if your car does not show any obvious damage, it may still be subject to a decrease in value due to the fact that you have a statutory obligation to inform a potential buyer that your car has previously been involved in an accident. This article will help you calculate the reduction in the value of your vehicle.

Steps

1. 1 Determine what the market value of your car was before the accident. This is not necessarily the amount of money for which you purchased the car.
   • The easiest way to get an estimate is to look at prices on websites such as Edmunds.com, Autotrader.com, NADA.com, and KBB.com. You need to find similar cars in the same condition as your car was before the accident.
   • You need to browse cars based on such important factors as make, model, year of manufacture, as well as mileage and condition.
   • Ideally, you should find several different prices from several websites. Calculate the average cost. Let's call this value "Amount A."
2. 2 Determine the new market value of your car in a post-accident, post-repair condition. If possible, try to redefine the cost based on the current condition of your vehicle. Let's call this "Sum B."
   • If this cannot be done, then replace it with the total cost of repairing your vehicle. Let's move on to explaining the results.
3. 3 Subtract B from A. If you subtract the amount B from the amount A, then the result will be the amount by which the cost has decreased.
4. 4 Explanation of the results. If the total cost reduction is approximately one-third or more of the market value of your vehicle (amount A), then you usually have a good chance of successfully filing a cost reduction claim with the driver's insurance company responsible for the accident. ... It may be wise to contact your local accident lawyer to determine the best course of action.

Warnings

• This article is not legal or financial advice. It is intended to be used as a helpful guide. It is highly recommended that you consult a local accident lawyer who will provide you with specific advice based on your individual situation.