After your car is involved in a crash, your first thought might be to have it repaired. But if the total cost to repair your vehicle exceeds its actual market value, you might be better off taking the insurance check or selling it to a scrap yard. Continue reading to learn how much your wrecked car might be worth, and where you can sell it for cash on the spot.
Diminished Value in Cars
All vehicles begin to reduce in value as soon they are sold and driven off the lot, but the rate at which a vehicle diminishes in value depends on a wide range of factors. Often referred to as “diminution of value”, a vehicle’s diminished value is calculated by comparing the value of the car before the accident, to the value of the car after the accident. It is important to understand the difference between diminished value and depreciation, as they are not the same thing when it comes to cars. Depreciation refers to how much a car loses value over time.
There are three types of “diminution of value”, which include inherent, immediate, and repair-related. The most common type is inherent diminished value, but for car accidents, you will want to focus on immediate diminished value.
✅ Inherent Diminished Value – Loss of value as a result of damage over time.
✅ Immediate Diminished Value – Loss of value directly after damage occurs.
✅ Repair-Related Diminished Value – Loss of value following improper repairs.
How to Sell a Wrecked Car in Indianapolis
Earn fast cash for junk cars in Indianapolis by calling 317-450-3721 right now! You can reach a friendly office attendant anytime, day or night. Selling a junk car for cash is good for the environment, makes you money, and gets unsafe vehicles off the road. There are several advantages to selling a junk car, but let the cash tempt you the most! Request a free phone quote, today.