How Is the Value of an Accident Car Calculated?

There is no denial of the fact that the value of your car will decrease if and when it meets an accident. Regardless of the quality of repairs it undergoes, it is going to cost you less than what it would have fetched without the mishap. If the accident is a major one and the damage is severe enough to make your car dysfunctional, it will be treated as junk. You then summon those professionals who pay cash for accident cars in Canberra to have them towed away for a certain amount of cash. Now there are quite some issues to discuss in regards to the amount of cash you receive for your accident car.

Who will determine the value of your car after the accident?

The million-dollar question in this regard is: how much decrease in value will your car suffer due to the accident, and who will determine the value? As per the statistics, the value of a car decreases by 20% on average once it meets with an accident. However, this strictly speaking depends on the extent of damage that the car suffers in the mishap. In case your car was involved in a collision with another vehicle, the insurance of the driver of that other vehicle will cover the costs. This is termed third-party coverage. This indicates that they are your third party.

How many types of diminished values exist?

There are certain methods by which the value of the car can be calculated following an accident. This can be done with the help of the insurance company. This will help you evaluate whether the car removal company that pays cash for junk cars in Canberra that you have summoned is paying you the justifiable cash that you deserve for your car.

Immediate Diminished Value

As the name indicates, if and when your car is involved in an accident, the immediate perceived value it carries immediately after the accident is known as immediate diminished value. If the damage to your car is repairable, then this calculation is done before the repairs.

Inherently Diminished Value

This particular value is determined on the assumption that all the damages have been fixed by professionals. However, even though the damages have been repaired, the value of your car will be reduced. In this case, you have the option of not selling your car to a company that pays cash for cars.

Repair-Related Diminished Value

This is the value that is lost due to the repairs and the quality thereof and can be attributed to issues like paint color mismatch, below-par craftsmanship, and replacing the damaged components with substandard or duplicate counterparts. If you find these issues in your car, it will be wiser to sell it for cash to car removal companies that will take into account all these factors and pay you the price that you desire in line with the repair-related diminished value of your car.

So you see, there are quite some issues to be considered when it comes to paying for your car that has been in an accident. This is the reason you must hire a leading car removal company like Prime Cars Removal if you are in and around Canberra. Our experts will take into account all these factors to pay you the price that you truly deserve for your car.