Why is a Repaired Vehicle Worth Less?

Updated: Feb 25, 2019

Think about this question from the perspective of a buyer. How would the knowledge that a vehicle you are considering had to undergo collision repairs effect your buying decision? Would you pay as much for a repaired vehicle as an exact replica that was never in a collision? What if you also learned that the repaired damages involved:

  1. The compromise of the vehicle’s structural integrity, i.e., Unibody/Frame.

  2. Straightening/filling (bondo) damaged parts rather than replacing OEM.

  3. The use of imitation and or junkyard parts in place of genuine factory parts.

A buyer assumes all future risks associated with the repairs because auto body shop and insurance company guarantees expire upon conveyance of the vehicle. Even transferable factory warranties will not respond to problems arising out of collision repairs. The limits placed on these warranties/guarantees are there for a reason, a financial reason.

New car dealers are aware of how the above factors influence consumer buying decisions and steeply discount effected trades. Reputable dealers will not place such vehicles into their used inventory, instead they dispose of them via wholesale auction because they don’t want to deal with come-backs and unhappy customers.

As a result, if your car required collision repair due to the negligence of someone else, you are entitled to not only the cost of repair but also its loss of value, known in legal terms as diminution in value.

That's where we can help.

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