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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No matter how good a hair transplant you still cant compete right?
Even the best body shops can not rebuild a car exactly the same as when it left the factory. All cars are discounted for that.
If the accident was not your fault you may, in your state, sue the liable party and their carrier for the lost value of your vehicle. Washington State allows this. Idk about other states.
I worked in the auto industry and I look at it as the car is not “new condition”. From the factory the cars are built all 100% exactly the same with the same exact bolts, parts, brands, etc that have passed engineering tests. A shop doing a rebuild may use XYZ brand when the factory built it using ABC brand. Little things like this add up. Maybe the door closes a little stiff now? Well after lots of use that may cause the door hinge paint to crack, leading to rust, leading to door hinge failure. Maybe the suspension components are slightly bent- causing tires to wear faster, suspension parts to wear out in half the time? Lots of things can appear very minor but add up over time for vehicles in accidents
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.
Let’s say you’re up in your treehouse playing with your Buzz Lightyear toy when you accidentally drop him all the way to the ground. You go to pick him up and see that some of his parts came off, there are some wires hanging out, and there’s a nasty scratch in his paint, so you take him to your dad and ask him to fix it. Dad gets out his trusty toolbox and the next morning he gives it back to you looking good as new. No more wires hanging out, all his parts are back together, and dad even touched up the paint on that nasty scratch. You go right back to playing with it, happy as can be. But then you start to notice things. That right arm that popped off is flimsier than it used to be and no longer holds its pose. The sound it used to make when you pushed that button just seems a little off. Even that touched up scratch, when the sun hits it just right you can tell it doesn’t perfectly match up. When you set it on your bed it still looks brand new, but the more you play with it the more you realize that it’s not quite the same as before your accident. It’s not your dad’s fault. He did a great job fixing it, but he just doesn’t have all those fancy tools in his toolbox like they have in the toy factory.
This is why you ALWAYS go after 25% diminished value if someone ever hits your car. Nobody will ever pay you the same as what an accident-free comparable car would go for.
Think of a car as if it were a sheet of paper. Now imagine that this sheet has been crumpled. You can iron it, you can straighten it as much as you want and it won’t be 100% yet.
A car consists of thousands of moving parts that are very important, after an impact some of them may not appear to be damaged, but they may still be damaged and present problems in the future. It is even possible that the alignment of the pieces is aesthetically satisfactory but structurally condemned.
Therefore, there are many unpredictable risks that may cost a lot in the future, so the final price of a damaged vehicle compensates the losses.
True story: my dad had a Porsche cup car (race car) that he bought new for the new racing season (this was 20 years ago). In the first weekend of testing, it was wrecked tail first into the wall at 175 MPH. The back third of the car was toast. Subsequently, my dad died of a heart attack.
When my mom sold the car, she was able to sell it as new for full purchase price, since the repair was basically to cut off the back third of the car and make it new.
Racers don’t give a shit about stigmas. They trust German engineering.
One could argue that no car is ever going to be fully restored. The amount of work involved, to find microscopic damage, it would basically become a case of the ship of Theseus, replacing most parts until it is a brand new car. A big enough accident, and the chassis may be permanently compromised, even if still road legal.
Every part of a car is affected in an accident. A front end collision that only damages the front, right? Maybe. The entire frame can be tweaked slightly. Interior trim can be knocked loose and start rattling 50,000 miles early. The mechanicals within climate controls can be tweaked and fail prematurely. The windows, when rolling up, will chafe a bit more and wear the motors faster. The door seals will have a harder time sealing as they age.
Furthermore, in the act of replacing components, many mechanics cut corners, leave out forgotten fasteners, electrical ties to prevent vibration, etc. Almost never is a car reassembled as well as it was from the factory.
Strange and mysterious gremlins tend to pop up all over in a car that has been in a wreck.
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