If a car is in an accident, and the repair shop restored it to new condition (no bent frame, new parts, paint, airbag, etc.), why does it still lose value in as a trade in, if it is otherwise in great condition, with low miles?
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I work within the motor insurance industry, and one thing you will occasionally see following an accident is a claim for diminution. That being the difference in value of the vehicle as a consequence of it having been involved in an accident/repaired. They have to get a professional engineer to inspect and do a report, it’s not as simple as just asking for an arbitrary figure.
One of the ‘go to’ arguements is paint depth. They will measure the panel or part that has been repainted following repairs, and measure the rest of the vehicle, and make the arguement that the paint at the repaired section will fade at a different rate to the rest of the vehicle making the repair more obvious.
Of course there’s much more to it than that, and I’m not going to get into it all now. But that’s at least one reason.
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