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September 27, 2023
The Impact of Accidents and Repairs on The Value of A Used Car

The Impact of Accidents and Repairs on The Value of A Used Car

Jul 28, 2023

The used car market has been booming in India since the global pandemic. Many people are buying used cars because they are economical, and a variety of cars are available.

Before buying any used cars, the sellers ascertain the car’s value and then present the buyer with a reasonable price. But what if the car you choose has met with an accident before or has had several repairs? Would you be willing to pay a high amount for this used car? Well, if that seems like a lot, car valuation online with a used car value calculator can help to get information on the price of any used car. 

However, it does not change the fact that certain factors like accidents and repairs can affect the car’s value in a negative way. So, we suggest you check the car’s accident and repair history before setting its final value. 

How Can Accidents and Repairs Affect The Value of The Car?

From a little damage to big damage like an accident can affect the value of the used car. Here is how any accident and repair can affect a used car’s value.

1. The Type of Damage The Used Car Has Endured 

First of all, the damage to the car has to be ascertained. If on the exterior of the car, there are some dents or some paint has come off, then this is classified as minor damage. With some repairs, this situation can be salvaged. 

But if there is internal structural damage to the car then this undermines the value of the car negatively, for example, if there is engine damage, or the transmission or some important mechanical parts of the car is damaged in the accident, and if the insurance claim is not made, once the car is ready for valuation and selling, this issue will easily catch the eyes of the buyer and seller. 

2. Repairs of The Car 

The repairs made to the car can help the car’s value if the spare parts used are of good quality. But if the parts are of cheap quality, this will further lower the value of the used car.

Moreover, the repairs should not be evident to the buyer. It should be invisible, and this can only be done in a good certified repair shop and with the best factory-made spare parts, so that it strengthens the internal structure of the car which the accident has caused to weaken. The best decision would be to get the insurance company to search and approve the repair centre or shop for the repairs.

3. Car Model and The Year of Manufacture 

If the used car is a relatively new car model and the year of manufacture is recent, minimal damages can be overlooked because it is new. Factors like high demand and low mileage can make the buyers look to the other side. Still, sellers will want to sell the car as soon as possible as the demand might decrease. Some value of the car can be redeemed, but this is just the case for minimal damage. If the used car has suffered maximum damage, then even with the recent model and make, this will affect the car’s value immensely.

4. Car’s History of Accidents 

Whenever the used car is valued after the external and internal checking, the car’s history of accidents records is searched. If there have been more than two -three accidents, regardless of the minor and major damage, this will single-handedly bring the car’s value down. Even if the repairs and damage done are expensive, this will not help the car’s value to go up.

5. Diminished Value 

The diminished value of the car is defined as the loss of the car’s value after going through a major accident. After assessing the situation, the insurance company will label the car salvage title, and if any used car has this label, then its value automatically goes down. 

7. Safety Concerns

It does not matter if the most expensive auto repair shop does the repairs and maintenance, and the car looks brand new. Once the accident history records come up, this becomes a major disadvantage. No one wants to buy a used car that has been in an accident, the trust value is gone, and the need for safety becomes the priority. 

People have the mindset that the internal part of the car is not of good quality even after repairs and if they want to invest their money it should be in a good, sturdy car that is why accidents and repairs hurt the value of the used car the most.

8. Insurance Category 

There are four levels of insurance for cars that have met with an accident. If your car is in category A, it is irredeemable and can only be used for scraps. Category B is the car irredeemable, but the parts of the car can be sold and used in other cars. Category S signifies significant structural damage, but the car can be repaired and deemed fit to be on the roads again. Category N is that although the car does not have structural damage, damage to the steering and brakes makes it unfit to be driven. Cars falling under Category S have the chance of being resold. But for the other ones, the value goes down immensely.


The used car which has been in an accident loses its selling capacity even if all the other features are good. Buying a car is an investment, and getting returns, be it monetary or personal, is the ultimate goal when purchasing a used car. 

However, a used car, which has met with accidents and repairs, becomes a burden very fast. The trust is gone and people automatically turn their eyes to different ones, which is why accidents and repairs are two of the biggest disadvantages that negatively impacts the value of any used car. 

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