This tool assists in estimating the reduction in a vehicle’s market value following an accident, even after repairs are completed. It aims to quantify the financial loss incurred due to the vehicle’s accident history, which can affect its resale potential. As an example, a car involved in a significant collision might sell for less than a comparable vehicle with a clean record, even if both are in similar condition post-repair.
Quantifying the decrease in value is important for individuals seeking compensation from insurance companies or other responsible parties after an accident. Establishing this loss helps to ensure fair settlement negotiations and can provide a basis for legal claims. Calculating this figure has evolved with increasing sophistication, incorporating factors such as repair quality, vehicle age, mileage, and the severity of the accident.
