Wrecked Car Value -
Diminished Car Value
Wrecked / Diminished car value
occurs when, as a result of accident damage, the value of a car is reduced,
even though the vehicle has been repaired. In certain cases this reduction in wrecked
value can be as high as 15%.
For those motorists planning to keep their car for a lengthy period, having a
diminished or wrecked car value should not be too great a concern.
However, given that car history checking is increasingly becoming standard
procedure in the
used car buying market
, anyone who plans to sell their car and
upgrade at any time in the short to medium term may find themselves hit by diminished/wrecked
This is because potential car buyers may not be prepared to pay as much for a
car that has sustained impact damage, no matter whether it has been
satisfactorily repaired or not. Therefore, a vehicle’s accident history may be
used as a bargaining tool to bring the asking price down.
It may be argued that wrecked car repair damage can impact on the reliability and safety of
a car. In particular, repairs to the chasis and accidents which have
resulted in the deployment of airbags and flood damage - see
buying a flood damaged car
comprehensive insurance policies
will ensure that damage to a car is rectified, there is generally no compensation for the resultant potential
loss in value (diminished car value).
If, in future, compensation for loss in value as a result of accidental damage
were to become included as standard in car insurance policies, premiums would
no doubt skyrocket.
Wrecked Car Value - What Is
Diminished Car Value?