Often, repairing your damaged car will be the best option, especially if the repairs are covered by your car insurance. Buying a new car can be expensive, leaving you with five or more years of debt, while repairing it (depending on the damage) can cost you a few thousand dollars. After an accident, even if the damage is repaired in a way that goes virtually unnoticed, it reduces the value of your vehicle. When you change your car, the dealer will use the values in the Kelley Blue Book and the National Dealers Association to determine the value of your car.
Dealers are trained to find damage caused by an accident, so it's unlikely that they won't be able to tell if your car has been in a collision. Because the reduced value varies between vehicle makes and models, there is no fixed percentage that indicates how much the value of your car will fall. However, since the car will continue to have value, it may be beneficial to simply sell it instead of repairing it. It's a good habit for car owners to check the value of their vehicles (similar to checking their credit scores), but knowing the value of the car can be very helpful when deciding if it would be better to repair your car or buy another one.
If your car insurance covers repairs, repairing the damaged car is often the best option. New cars can be expensive, leaving you with five or more years of debt, while repairing them (depending on the damage) can cost a few thousand dollars. Before making this decision, you should know everything you can about the value of your vehicle to see if this affordable, short-term option won't cost you much when you change it in a few years. Some dealers may accept a damaged car as a replacement for a new vehicle.
This can help you get a replacement car more quickly. Instead of trying to figure out how much it might cost to repair your vehicle, you may have to decide what to do with a car that isn't worth repairing. Once you know the estimated repair costs, evaluate whether the repairs are worthwhile or not.
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