Rear Ended, reduced trade in value?

[Londonguy]

Hey guys. Rear ended yesterday afternoon at a stop light. Damage looks pretty minor, haven't got an estimate yet because shops aren't open here on Saturdays. Question is, I plan to trade this car later this year. Since it's a reported accident will the value of my trade go down much. I've heard that any accident reduces your value. If anyone knows about this stuff, I'd love to hear from you. Thanks.

[RjKlement15]

Originally Posted by Londonguy

Hey guys. Rear ended yesterday afternoon at a stop light. Damage looks pretty minor, haven't got an estimate yet because shops aren't open here on Saturdays. Question is, I plan to trade this car later this year. Since it's a reported accident will the value of my trade go down much. I've heard that any accident reduces your value. If anyone knows about this stuff, I'd love to hear from you. Thanks.

I was just hit yesterday too. I would like to know about this. It is known as diminished value. Google it. Thats what I am doing now trying to find out what I can.

[Zembonez]

If properly repaired, you do not suffer any reduced value. I buy cars for a living (and have for a long time). A properly repaired vehicle is very hard to spot. It looks like and brings the same money as a vehicle that was never damaged.

A bad repair is a different story. A poorly repaired vehicle will certainly cause me to pay less.

Dealer appraisers do not have a magic wand that tells them if a car has ever been repaired or not... they are just normal people (often with little appraisal experience).

[Londonguy]

A Carfax or Carproof run by the dealer will tell if the car has been in a reported accident, so they will probably reduce the value just from that information even if the repair looks good.

[thestone11]

Originally Posted by Zembonez

If properly repaired, you do not suffer any reduced value. I buy cars for a living (and have for a long time). A properly repaired vehicle is very hard to spot. It looks like and brings the same money as a vehicle that was never damaged.

A bad repair is a different story. A poorly repaired vehicle will certainly cause me to pay less.

Dealer appraisers do not have a magic wand that tells them if a car has ever been repaired or not... they are just normal people (often with little appraisal experience).

It may be the case if the accident and repair don't show up on Carfax report. But if it is reported by the insurance company, the dealer for sure will spot that and offer you less money for trade it.

[Zembonez]

Originally Posted by thestone11

It may be the case if the accident and repair don't show up on Carfax report. But if it is reported by the insurance company, the dealer for sure will spot that and offer you less money for trade it.

People like to think that, but I work with a lot of dealerships. Exactly NONE of them run a CarFax report on a vehicle when appraising it for a trade. CarFax is a total joke. The vast majority of law enforcement agencies and body repair shops do not report to them or provide access to their repair records.

Most of what people believe about the used car business is simply internet hooey.

[thestone11]

Originally Posted by Zembonez

People like to think that, but I work with a lot of dealerships. Exactly NONE of them run a CarFax report on a vehicle when appraising it for a trade. CarFax is a total joke. The vast majority of law enforcement agencies and body repair shops do not report to them or provide access to their repair records.

Most of what people believe about the used car business is simply internet hooey.

I am surprise by that.....and that's why you don't buy used car at a dealership. They all say their cars are mint condition with no accident history. Wouldn't they get into legal issue if the customer decided to do a car fax on their own and find out the car has been through accident before?

[Zembonez]

Originally Posted by thestone11

I am surprise by that.....and that's why you don't buy used car at a dealership. They all say their cars are mint condition with no accident history. Wouldn't they get into legal issue if the customer decided to do a car fax on their own and find out the car has been through accident before?

Most will run a VIN history on vehicles before closing the deal to make sure they have not been issued a salvage title in any state. A dealership selling used vehicles is not really legally bound to dig up or disclose whether a vehicle has ever been damaged or not. Many vehicles end up in fender benders, get fixed, and never have any issue from it.

Another thing most are not aware of is that dealers send almost all of their trade-ins to the auction to be sold. Those cars on the used car lot are NOT local trades. 90% of the cars on their used car lot are purchased at the auction (what I do). The auction has inspectors that are pretty darn good at seeing prior repairs and any found are noted on the auction pre-bid reports.

These auctions are HUGE events that run multiple sales simultaneously and sell thousands of vehicles every week. The used car business is a BIG business.

Here's an interior pic of one I go to regularly. It's indoors and each one of those lanes is a separate auction for the cars in that line.

[cabur]

Originally Posted by Londonguy

Hey guys. Rear ended yesterday afternoon at a stop light. Damage looks pretty minor, haven't got an estimate yet because shops aren't open here on Saturdays. Question is, I plan to trade this car later this year. Since it's a reported accident will the value of my trade go down much. I've heard that any accident reduces your value. If anyone knows about this stuff, I'd love to hear from you. Thanks.

Put yourself as a buyer. Will you pay top dollars for a car that had a known accident?

[NYCorollaS]

When I traded in my 05 Cherokee to get my corolla s in Jan they absolutely ran a carfax and saw a minor accident and yes offered less for the trade they ultimately wanted to make the deal and gave me the number I wanted for the trade

Good luck!