Luxury vehicles can cost anywhere from about $21,000 US to more than $1,000,000 US. However, they also start to lose their value after the first one to three years because they then become used cars and this loss can exceed more than 50 percent of the original value of the vehicle. Depreciation and loss of resale value can be even worse when you have been in a collision and have had to do major repairs. This is known as diminished value, and your insurance might not cover it.
To be better able to determine the possibility and extent of diminished value to your high-end vehicle, here are a few things to consider.
The harder they crash
A collision can range anywhere from a simple fender bender to one that results in major structural damage and damage to parts that may have to be replaced. Even if your repairs were done using OEM (original equipment manufacturer) parts, the vehicle will never be exactly the same as before the accident. However, it is possible that even an accident that only required a paint job to restore the car can lead new buyers to be skeptical of purchasing.
While it is true that it was a used car before the crash and is still a used car following the crash, your used high-end car will now have a collision history that new owners are entitled to get. This can further reduce the resale value of your car and can result in values that are approximately 10 to 30 percent less than its previous used value.
Maintenance is as maintenance does
Any good car owner will spend time and effort making sure that they maintain their vehicles. However, not all auto shops are created equal and sometimes issues such as poor regulation will result in shops employing unskilled and unlicensed mechanics to work on your vehicles. Issues that can lead to diminished value from a trip to an auto shop include repair mistakes such as improper welding or poor auto body finishes.
It is therefore important that when you are seeking a shop for your high-end vehicle, you should do some research and find one that is not only SGI accredited but is also staffed by properly certified and skilled mechanics and body repair men. Two valid ways to find a good shop is by getting recommendations from previous customers that you know or asking for certification from the mechanics before they start to work on your vehicle.
For more information, contact Perfection Paint Auto Body or a similar company.
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