5 WAYS YOU’RE LOSING MONEY BY NOT TRADING YOUR DAMAGED CAR FOR CASH
Author : Bijay Maharjan | Published On : 26 Sep 2021
The aftermath of a car accident can be terrifying, perplexing, and downright frustrating. Particularly when you aren’t to blame. Naturally, the well-being of everyone involved takes precedence. But after everyone has moved on with the traumatic experience and you have claimed your insurance money, you are now left with a damaged car. There are many options for you to consider at this point. A better way is to trade off your damaged car for cash. Some prefer spending on repairs while others just keep the useless frame of their old road companion as a memento. Either of these options doesn’t make much sense as they don’t generate any profit and add up to the list of problems for the owner. There are several car dealerships and cash for cars services that provide cash for damaged cars and handle all necessary paperwork.
Here are different ways how you are losing money by not trading your damaged car for cash:
Your Damaged Cars Might Have Useful Parts Whose Value Will Drop Over Time
Even after facing serious road accidents, your vehicle can have a few components that might get highly valued. Since there are numerous buyers out there always in the search for used car parts, you can make some instant cash by selling these parts. Car parts and components like radiators, fuel pumps, water pumps, batteries, alternators, etc are constantly in high demand.
Allowing a car to sit without being moved for an extended period of time may cause significant harm. It puts the engine under stress, drains the battery, and corrodes the gas tank. Allowing a car to sit with flat tires may also damage the vehicle’s rims, resulting in expensive potential repairs. So, if you have a car that isn’t used on a regular basis and is damaged to a certain undrivable extent, selling its parts can be the best financial decision you can make because you’ll get the best price and prevent long-term loss. You can also trade your damaged car for cash to scrap yards who can make good use of auto parts.
Endless Repairs Will Put A Hole In Your Wallet: Trade-Off Your Damaged Car For Cash ASAP
Since older/damaged vehicles need frequent maintenance, many people end up spending more money on them than the vehicle’s worth. If you’re going to the auto repair shop more often than normal, it may be time to cut your losses and invest in a more reliable vehicle. When a car reaches a certain age or mileage or faces severe damage, the engine and transmission start to fail, which can cost more to fix than the vehicle itself. The best course of action at this stage is to sell the car and reinvest the proceeds in a newer, more reliable vehicle.
Automobiles with no bumpers, have substantial structural damage, or have defective headlights or taillights are not considered street legal. You risk being ticketed by law enforcement or putting yourself and others in danger if you drive a car that is in bad repair. If you can’t afford the repairs needed to make it street legal, the best choice is to trade your damaged car for cash and put the money into a down payment on a better vehicle.
You’re Paying Taxes For A Vehicle You Don’t Drive Anymore
Even if you have stopped driving your damaged car, until it is registered in your name, you are obliged to pay all necessary taxes(law might vary according to each state). Otherwise, you might have to face serious legal consequences. Paying for something that you don’t use anymore sounds quite unreasonable, doesn’t it? There’s no fun in paying road taxes for a damaged scrap piece that isn’t even roadworthy anymore. After a few years, you will have already paid a significant sum which could have landed you a better deal on a brand new vehicle. So, before it gets too late, trade in your damaged car for cash.
When Depreciation Kicks In, You Will Be Left With A Vehicle Worth A Pittance
No matter how hard you try to escape it, depreciation is inevitable. The depreciation rate of a damaged vehicle is even more exponential. In general, a car that is in bad condition can lose more value than one that is in excellent condition. The most obvious explanation for car depreciation is that your car now seems to be in worse condition than before. It doesn’t have the same resale appeal as it used to, whether it’s a slight dent, a cracked windshield, the front end is smashed in, or the vehicle is nearly totaled.
Yes, your insurance will cover the cost of repairing the damage. However, even though a vehicle has been completely restored, the depreciation value remains. Which vehicle do you think a customer would prefer if they have an identical vehicle – same make, model, year, mileage, and condition – but yours has been in an accident? To make it appealing to sell, you must lower the price, making car depreciation after an accident more significant over time.
Driving A Damaged Car Will Land You In Costly Problems Sooner Or Later
Airbags and crumple zones, for example, are one-time usage features that will not work safely if the car is struck a second time. If you’ve been rear-ended the first time and the impact-absorbing parts haven’t been replaced properly, you’re at a much higher risk of damage if the car is struck from behind again. Driving a damaged car isn’t something you should risk, especially due to the abundance of distracted drivers on the road today.
Even if you hire an auto-maker authorised mechanic to fix your damaged car, one or two parts might get overlooked no matter how adequate the repair facility is. Spending on exorbitant repairs and bringing such vehicles back on the road again might not be safe for others on the road too. So rather than using the insurance company’s coverage amount to repair the vehicle, it’s in your best interest if you trade in your damaged car for cash and invest in a new one.
All in all, selling your damaged car for cash can generate enough revenue to make your next purchase a lot easier along with your insurance money. If you are in Australia, you can turn to A1 Cash For Car as we provide cash of up to $9999 for damaged cars and help you save hundreds of dollars on removal as well.