How To Calculate The Diminished Value Of An Accident Damaged Car?
Was your vehicle recently involved in an accident? Is your damaged car beyond repair? Are you concerned that your car is in bad shape and no one will buy it from you? Would you like to Find Out The Diminished Worth Of Your Vehicle? Fortunately, there are certain ways to calculate the value of your car, no matter how wrecked the vehicle is.
With the help of this guide, you will be able to determine the cost of your vehicle based on its condition and other criteria. Even if your car is scrapped, junked, damaged, or old, it has some value. We are here to help you calculate how much Cash for Cars you can get for an accident-damaged vehicle.
Calculate The Diminished Value Of An Accident Damaged Car?
Why Does A Car’s Value Drop?
Before calculating the value of your accidental vehicle, let’s understand the reason behind the decrease in the car’s worth. Cars are built to be durable, but with their usage, their price depreciates over time. Unless it’s a high-demand vintage model, most vehicles lose value over time. This is also known as diminishing value. It happens because the newer models are worth more, and the wear & tear of old cars make them short-lived.
Picture it this way- when you purchase a car, it’s an asset for you. You want new cars to be reliable, with proper maintenance. Second-hand or used vehicles are much more affordable because you’re only buying a portion of the vehicle’s overall life. Every mile reduces a car’s serviceable life, and its worth will eventually approach $0.
Can I Still Receive Good Cash If My Car Has Been Involved In An Accident?
Accidents can diminish the value of your vehicle more than normal wear and tear. Even if a car is repaired to visually sound condition after an accident, such events are recorded in a car’s history and influence its value. No matter how much you repair your car, it will not be considered the same as the original factory-made condition. Also, it’s not easy to monitor or control the quality of the repairs.
While damage due to accidents will undoubtedly affect the value of your vehicle, there are ways to calculate how much this damage will cost you financially.
How To Find The Actual Value Of My Accidental Car?
Try to find the estimated value of your vehicle in a reputable online bluebook. It will give you a general value estimate based on your car’s brand, make, model, year, and state. Bluebook is considered an unbiased guide for evaluating new and used vehicles. It can compare prices for second-hand and new cars in various conditions and is a helpful guide for both buyers and sellers.
How To Determine The Value Of My Accident Damaged Car?
Once you identify the original value of your vehicle based on the bluebook, you can use the ’17c’ formula to determine your vehicle’s value after an accident.
17c calculation has been considered a reliable way to figure out a vehicle’s worth, including any diminished value due to accidents. This 17c formula takes both damage and mileage into account to find out a car’s depreciated cost.
Start with looking up at your car’s pre-accident or original value. From there, you have to apply multipliers based on a 10% depreciation cap, mileage and damage. The 10% cap actually comes from the insurance industry standard that assumes your vehicle’s value will not depreciate more than 10%.
Please note: The damage multiplier is on a scale of 1.0 to 0.0
- 1: severe structural destruction
- 75: major damage to structure and panels
- 50: moderate damage to structure and panels
- 25: minor damage to structure and panels
- 00: no structural harm
The basic criteria here is whether the repairs pose potential risks to the next car owner in the case of a future accident. If a car’s body or structure is damaged, the vehicle may not perform well during another accident.
Lastly, the mileage multiplier is also a 1.0 to 0.0 scale, but it decreases in increments of 0.2. Each 0.2 increment represents 20,000 miles. So, if your vehicle has 60,000-79,999 miles, you will apply a multiplier of 0.4.
- 0: 0-19,999 miles
- 80: 20,000-39,999 miles
- 60: 40,000-59,999 miles
- 40: 60,000-79,999 miles
- 20: 80,000-99.999 miles
- 00: 100,000+
Example Diminished Value Formula:
Let’s assume your vehicle has initially been worth $10,000, was involved in a minor accident with slight damage to the structure and panels, and had 24,000 miles on it, the 17c calculation would seem like this:
$10,000 (actual value/pre-accident) x 0.10 (10% depreciation cap) x 0.25 (minor damage) x 0.8 (24,000 miles) = $200
Accident, age, and mileage devalue the vehicle by $200. If the vehicle were involved in a severe accident with significant structural damage, the damage multiplier would be 1.0 instead of 0.25. The seriousness of the car destruction and the miles are driven will affect the vehicle’s worth based on the maximum depreciation of 10%. With the help of this calculation, you can be confident that you are getting the best possible price for your automobile.
Top Cash 4 Cars Can Help You Sell Your Accidental Car Today!
Selling an accidental vehicle can be stressful. But, Top Cash 4 Cars is here for you whenever you want to Sell Your Car For Cash, no matter what state it’s in. With our diminished value calculator, you can expect to get fair, realistic pricing from us. Why delay when you can exchange your rejected vehicle for a pile of cash? With so much unpredictability in the world right now, let Top Cash 4 Cars make one thing in your life hassle-free. Contact us directly at 0412 330 221.
