No matter how responsible and good a driver you may be, our South African roads are inundated with careless drivers (and dare we even say it – clueless drivers?). From bumper bashings to head-on collisions, car accidents are, unfortunately, an everyday occurrence, setting in progress a domino effect of mechanical repair quotes, panel beater quotes, insurance claims, the value of your car deteriorating and perhaps even the decision to sell your accident-damaged or non-running car without repairing it.
“All provinces, except KwaZulu-Natal and the Free State, recorded increases in road fatalities in January, year-on-year.” –Swisherpost.co.za
The possibility of you and your car becoming the victim of a road accident is not debatable and is generally out of your control. However, what is in your control is your choice of options after an accident and how you will deal with the reality of how an accident affects the resale value of your car.
(You can be pre-emptive regarding vehicle safety features that may save your life in an accident).
For the large majority who do not have the luxury of comprehensive car insurance, the cost of fixing your car versus selling your accident-damaged car – ‘voetstoots’ – needs to be seriously considered.
The following question is likely to be top of your mind when looking to resell your car:
“What will my car value be if I do choose to repair it, and will this be more than the scrap value after removing the cost of repairs?”
Car accidents are the biggest cause of vehicle depreciation with up to 20% loss.
Unfortunately, the value of any vehicle that has been in an accident and undergone substantial repairs will be negatively affected (regardless of the quality of repairs or parts used).
Several factors influence the value of your car after an accident:
- The severity of the accident and type of damage. (A minor bumper bashing is not going to have a major impact on your car’s value).
- Newer cars tend to lose more value than older cars.
- The make and model of the car and demand for such models. (Sports cars and luxury cars tend to lose more value than entry-level cars).
- The quality of repairs undertaken and the warranty associated.
If you have been in an accident, there are a few actionable steps you can take to minimise the impact on your vehicle’s depreciation:
- Have your car repaired at a reputable and professional panel beater as soon as possible to mitigate further damage and loss of value (You do not want to incur further expenses down the line due to poor repair work).
- To help preserve your accident-damaged car’s value, get your vehicle detailed to remove any evidence of the damage.
- If your car is insured, know what the policy will cover and what costs will need to come from your pocket.
- If your car is parked outside, invest in a car cover to protect your vehicle from damage from the elements.
When selling an accident-damaged that has been repaired, never hide the fact that it was in an accident. Potential buyers will have access to your car’s history and if educated, will be able to discern the telltale signs of a car that has been repaired after an accident. Be upfront and clear and create a sense of trust that the vehicle is back to full working condition.
You have two choices when your car is wrecked; either you can choose to repair it or, after doing your sums, the wise course of action may be to sell your accident-damaged car for a competitive cash price.
