Should you deduct sale price for accident repairs?

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stranger706

stranger706

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I will probably be selling my Mazda 3 in the next month or so.

In 2007 the front bumper cover and radiator support were replaced due to a low speed collision into another car (other driver at fault).

The work was done at a professional repair facility that was recommended by both State Farm and the local Mazda dealer; all repair work is covered for the life of the car.

In a private sale, are you supposed to deduct the asking price for this repair work? I'm certainly not going to hide the fact that the car was repaired but I was not sure if I need to deduct a certain amount.
 
You should disclose it, but the amount by which repair work devalues the car is a point of negotiation. Properly done repairs should not devalue the car much, if at all...look, if you had changed the alternator, that wouldn't devalue the car... This is a bumper cover - easy work, doesn't affect other parts of the car...it shouldn't devalue it at all.

It's a negotiation point...just don't be surprised if it makes some people nervous...or they try to use it to their negotiating advantage...
 
If I was shopping for a used car, I would avoid any car that has been in an accident first. If I had no choice, I'd want to see ALL receipts and very closely scrutinize the paintwork for match, quality, etc.

The fact that it WAS in an accident would knock value off to me. Too big of an accident and it would be a non-starter, something minimal like this if the job was done very well and not noticable, wouldnt be worth much of a deduction, IMO. It is more of an enticement to go beyond my comfort level and buy a car that has had an issue.

As a buyer, if the job was super perfect, Id be looking for $500.
 
You shouldnt deduct anything.

But what you will find is anyone with an ounce of brains will get a carfax account and not even look at any cars with accidents.

I bought two used cars the last 2 years and simply skipped over any which had dings on the reports. There are so many cars without blemishes why take the risk.

So your issue will be simply getting people to look at the car and disclosing it would be a good idea.
 
I wouldn't hesitate at buying a used car from you if you told me what happened and what was fixed. All used vehicles are a risk, and in my opinion, the extent of damage here (that should be visible to the naked eye) doesn't add any more risk to the vehicle. In fact, if you have good maintenance records, an argument could be made that your vehicle is less of a risk than a "clean" Carfax vehicle with an unknown maintenance history.

So no, I wouldn't mark anything down yet. As others have said, let that be a point of negotiation, but be proud of what you have and present it in very clean condition. Over the years, I've found that if you appear confident in your product, you're more likely to get a sale than if you appear timid and cautious. Disclose the accident, and don't make it sound like you're apologetic or say, "unfortunately, it's had some damage."

If they still walk away after you show them what was replaced, simply because it's been in an accident, that's their loss; they're probably missing a fantastic vehicle.
 
My co worker recently bought a 1992 BMW 725i for $3000. It was a salvage title, and was actually in really good shape. Engine runs strong, interior near immaculate, no visible body problems (It had been totalled previously). He's been driving it for 2 months, and put a few thousand on it. He's quite happy with it. They were asking $4k for it, he got them down by telling them that the backseat was sticky.
 
If the accident shows up on carfax or autocheck, that is an automatic decline in value. Usually significant, especially in a newer car like yours.

This is especially worse if the repairs are noticeable due to low quality repairs or signs of prior work.

I don't think you are obligated to disclose the repairs unless they are salvaged, but I probably would just to have a good conscience.
 
Originally Posted By: Hokiefyd
I wouldn't hesitate at buying a used car from you if you told me what happened and what was fixed. All used vehicles are a risk, and in my opinion, the extent of damage here (that should be visible to the naked eye) doesn't add any more risk to the vehicle. In fact, if you have good maintenance records, an argument could be made that your vehicle is less of a risk than a "clean" Carfax vehicle with an unknown maintenance history.

So no, I wouldn't mark anything down yet. As others have said, let that be a point of negotiation, but be proud of what you have and present it in very clean condition. Over the years, I've found that if you appear confident in your product, you're more likely to get a sale than if you appear timid and cautious. Disclose the accident, and don't make it sound like you're apologetic or say, "unfortunately, it's had some damage."

If they still walk away after you show them what was replaced, simply because it's been in an accident, that's their loss; they're probably missing a fantastic vehicle.


The issue is that a car that has been in an accident is a higher risk. If it is ONLY a bumper cover, likely no big deal. But anything where metal work has been done, who knows about rust protection, seam sealing, work on the inside of the metal, etc. Not worth the risk of rust that would destroy the car and its integrity.

Honesty and clear description of the work performed (pics preferable) is important... to me at least.
 
Originally Posted By: TooManyWheels
If you do have to deduct value, you have a right to go after the other driver's insurance company for that loss.


Except that this is not the way the world works. Once the car is fixed acceptably, the insurance company is out.
 
When my truck was hit in the back, I took lots of pictures, and took pictures of the progress as the body shop was repairing it.

When the time comes, if I sell it myself, I will share the pictures. Considering the care and detail that the body shop took when repairing and repainting my truck, I have nothing to hide.

The shop knew that I was going to be particular, so they covered themselves by doing a top notch repair on it.
 
Don't mention it in the ad, but point it out in person. Then they'll see how well done the repair was.

Don't deduct a dime from your selling price. If several people over the course of a week try to whittle you down to about the same amount, take an offer.

Used cars are in short supply and worse condition than they have been in a very long time. I bet yours will show well.
 
Originally Posted By: stranger706
In a private sale, are you supposed to deduct the asking price for this repair work?


If it has been repaired, then no.

Originally Posted By: JHZR2
The fact that it WAS in an accident would knock value off to me.


Correct. At time of settlement of the property damage claim, in addition to the cost of repairs, ordinarily one would demand the reduction in value of the repaired automobile as additional damages. This is done by having a qualified vehicle appraiser give an opinion as to the value of the car in its original undamaged condition, versus its value as a repair damaged automobile. The difference in value, if any, is the additional damage beyond the mere cost of repair.
 
Realistically, if it's just the bumper cover it wouldn't matter to me. I would disclose it and not take any money off the asking price.

In my state you can't ask or sue for any diminished value from a collision.
 
It's one thing to fully disclose anything/everything related to what is known to have been repaired/affected and then another to have it still needing repairs. THEN deduct, unless the car is inoperable...fix it yourself(like you did paying for the fix from professionals/warrantied), and then ask for the price you would if it had never happened.

That's pretty straight forward to me. People that ask for more than that are going too far, IMO, but can understand why as it's an issue of trust and/or not knowing the future per se. It's a used car, the end of story.
 
Your price will only go lower from your asking.

I would ignore the fact in consideration of selling price. I don't see a reason to mention an accident unless a buyer specifically asks about it.

I think "diminished" value is way overrated. Your vehicle was made "whole" according to auto insurance and should. If quality body work was performed the damage won't be noticeable.

I give it a 50/50 chance the person will ever ask let alone research the history.

Definitely be forward if asked.
 
Originally Posted By: TomYoung
Originally Posted By: TooManyWheels
If you do have to deduct value, you have a right to go after the other driver's insurance company for that loss.


Except that this is not the way the world works. Once the car is fixed acceptably, the insurance company is out.


Exactly. That's why I don't let insurance companies use used or aftermarket body parts on accident repairs.
 
Wow lots of different views on this. I'm glad most of you think its not a big deal. Hopefully most of the potential buyers will feel the same way.

The repair is flawless. The good thing is (and heartbreaking at the time), the accident happened while the car was only a few months old. The repair shop was able to match the paint perfectly without having to adjust for "aged" factory paint.

LT4: Not really sure yet. I need to watch the market a little bit. Prices for similar Mazda 3's are all over the place. I found some for $14,000 and others were in the $7000s. I'll probably start out close to $10,000. On the plus side there does not seem to be many Mazda 3's for sale, much less the hatchback version.
 
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