How do I know if my car value has dropped and how much it has dropped?
I bought a new car on June this year, and 2 weeks ago, an incident happened and the car was damaged pretty bad. The car has been fixed and now it looks like new. The incident is not my fault, and I believe it is cause by a defect of the car itself even if the maker, which is Honda, denied it. I probably need a lawyer to talk to them but that is another topic. Now as the car has been repaired once, how do I know if t he car value has dropped? And how much it has dropped. Is there any place I can take the car and evaluate how much its value is?
Added (1). The reason I'm asking the questions is that I plan to ask Honda to pay for my financial damage, including the depreciation of the car, my rental car, my insurance deduction, and so on. I have specific numbers for all the others except the depreciation of the car. That is why I want to know if there's anyway to find out.
Let's put it this way. You had better purchase GAP insurance. In the first year, with no accidents, cars typically depreciate anywhere from 15% to 20% in value, depending on the make and model. With accident history, plan on it dropping an additional 5-10% in value. Over 5 years, most cars depreciate between 50% and 65% of their purchase price with no accident history.
Let's say you bought a 2018 Honda Civic for $23,000. Average depreciation is $3,700 in the first year with about 2/3 taking place in the first 6 months. It has depreciated approximately $2500 since you bought it, and the accident probably dropped it another $500 to $1000 in value, even if perfectly repaired. So, if you owe, more than $18k on your loan because you made a low down payment, you'd better get GAP insurance because if you have another accident that totals your car, you'll owe a lot more than the insurance will pay on it.
UPDATE: Good luck with suing Honda. They have deeper pockets than you do and a lawsuit would be very hard for you to win, even if you have a case in the first place. For the sake of only a few thousand dollars, good luck finding a lawyer to even consider taking your case unless a serious injury was involved.
The dollar value of the repair is what matters. The larger it is the more the value has dropped.
If the car wasn't totaled, which it was not, and the repairs were done professionally and with OEM parts such that the car is now in the same condition as before the accident, its value should not decrease at all. It doesn't get a salvage or rebuilt title like a totaled car and the only place where there MIGHT be a hint that an accident occurred would be in a Carfax report. If a future buyer sees the report he might use it to try to negotiate a slightly lower price. It's up to you whether you accept.
BTW, you have a steep uphill battle trying to get Honda to pay for your damages. And you chances of winning are close to zero. The cost of the lawyer will exceed the cost of the repairs, so then you're paying double or more for a case you won't win.
BTW, if you bought your car new in June, it has already significantly depreciated in value and has nothing to do with the accident. You won't get Honda to pay your for that.
Edmunds.com
You are NOT selling it are you? Stop worrying about something that does NOT matter. Cars are NOT an investment. It is an EXPENSE. It will DEPRECIATE and you can't do anything about it.
Your car has lost value. You can be sure of that, no need to question it.
As soon as you drive a new vehicle off the lot, you lose roughly ten thousand. After that, every click on the odometer and every day exposed to the elements will eat up dollars in resale value.
Theoretically, repaired damage of any kind doesn't affect your value at all. If the repairs are done properly, the vehicle will look and perform as if the damage had never happened. Key word, theoretically.
In reality, someone buying your vehicle might offer less than you think is fair because of the previous damage. This is commonly called "diminished value", and there's nothing you can do about it. Diminished value is a what-if, a speculative number, and it's impossible to prove a speculative what-if.
How much more would the buyer have paid if your vehicle had never been involved in that exact damage? (Only that exact damage, excluding regular depreciation, faulty workmanship / design, and usual wear & tear.) Answering that question is almost impossible, and proving it in court is completely impossible.
Seen the rear and side Honda dealer parking lots too full of Honda's in for repairs which in my opinion is evidence of unreliable cars. Forget about the engine or tranny reliability, all cars will give you that if you take care of them, its always something you never expected to break or have to fix that brings them into the Honda repair shops.
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