So, you have a car that was wrecked in an accident sitting in your driveway or somewhere else on your property. What should you do with it?
You could repair the car and then either sell it or use it. Or, you should sell it to a car wreckers in Auckland in its current condition. Which is the best option?
This will depend on a range of factors, but there are many situations where selling a wrecked car to a wreckers is easily the best option. This particularly applies when you take a longer-term view.
Here are some things to consider.
The Cost of the Repair Is More Than the Value of the Car
In many respects, this is the simplest situation. After all, why would you repair a car when you can buy something similar that isn’t wrecked for less money?
Remember to Factor in the Value of the Car After the Repair
Many people make a mistake when doing the above calculation on the cost of the repair and the value of their car. Specifically, they value the car as if it wasn’t wrecked. However, the fact the car was wrecked will be on its history.
This history is available to all future purchasers of the car and having a history of being wrecked will reduce its resale value. Therefore, this reduced resale value is the one you need to take into account when measuring against the cost of the repair.
Will the Repair Work?
You also need to consider the potential of the repair not working 100 percent. After all, a wrecked car can have damage that is not always visible or apparent. This could put you in a situation of having paid for repairs on a wrecked car but where the car is still not in a working condition.
This is hard to quantify but it should always factor into your thinking.
Wrecked Cars Depreciate in Value
Most wrecked cars (like any other car) depreciate in value the older they get. In fact, the age of your car is probably more important to determining its value than the amount of damage caused in the crash.
So, the longer you leave the decision to sell your car to a wreckers, the less money you are likely to get for it.
What Should You Do?
The key thing to remember is that getting a wrecked car repaired is not always the best option. In many cases, the most financially beneficial decision is to sell your car to a wreckers and then use that money to get a new car. You can also use it as a deposit on a new car.
The first step you should take before making a final decision, however, is to get an estimate for how much the repair will cost. From there, you can do your calculations.