Should you buy a car that has been in an accident?
6 minute read Published on Aug 23, 2024 by BrokerLink Communications
Buying a used car has many benefits, including paying a lower price and being environmentally friendly. After all, since most of the depreciation has already occurred, you can understand its performance expectations well.
Many used car buyers don’t get the full history of their vehicle — this can be a huge mistake! This is especially true if the vehicle has been in an accident. However, this isn’t to say that you shouldn’t buy a car that’s been in an accident. You should just be cautious.
Even if a car has been in an accident in the past, mechanical or body repairs have likely already been made before selling you the car. With that said, you should be aware of the vehicle’s accident history before buying it. With the help of BrokerLink, you can understand whether or not you should buy a car that has been in an accident.
Evaluating the impact of accident history on vehicle value
Before buying a car that’s been in an accident, you need to do a thorough inspection. This is because some people might not notice the damage right away. During the car buying process, you should understand that certain things can be a deal breaker. Private sellers and dealers can disguise cosmetic damage to entice buyers into purchasing the vehicle. Luckily, there are steps car shoppers can take during the buying process to protect themselves. Check them out:
- Get a full vehicle history report from a reputable source: this will provide you with information, including registration history, details regarding every accident the vehicle has been in, any damage it has sustained, and even any recalls that the particular make and model might have missed.
- Consult with a trusted mechanic for a pre-purchase inspection: this is an essential step to assess the damage history and each component of the vehicle, interior and exterior.
- Take the vehicle for a test drive: test drive the vehicle yourself to make sure everything is in working order and drives to your expectations.
A vehicle’s history can alter its value. For your safety, you should ensure that it has been properly repaired and is free of any unfixed safety recalls. Don’t let used car prices in Canada fool you. Have a mechanic focus on these aspects during the inspection to avoid getting ripped off. If you’re considering purchasing a used vehicle that has been in an accident, you should weigh the benefits and disadvantages, which we will explore shortly.
Buying a used car that’s been in an accident
Many used car buyers will not understand how the damage history impacts vehicle value. The nature of an accident can have a significant effect on vehicle performance. Research and fact-check the information about the vehicle before making a purchase. Find the salvage title and ask a licensed mechanic to verify your findings to avoid being taken advantage of during the selling process.
There are a few things to consider when purchasing a used car. If the used car you’re buying has an accident history, give it a second glance. Consider the pros and cons to determine if it’s the right used vehicle for you below:
Pros of purchasing a used car that has been in an accident
Although negligence has caused accidents in the past, used vehicles still have their advantages. Even though it’s not the perfect car, you may want to purchase a used vehicle that’s been in an accident for the following reasons:
- Buying a used car that’s been in an accident can save you money.
- Premium models may be more affordable.
- You can customize as you wish.
A vehicle getting into an accident isn’t necessarily a deal breaker. Small cosmetic damage that you can easily fix isn’t a big deal. It even gives you the possibility of getting a premium model vehicle without the hefty price tag.
Cons of purchasing a used car that has been in an accident
Even if you’re getting a better deal, buying a car that’s been in a fender bender or another accident isn’t without its risks. Damage history impacts vehicle performance and value. With that said, ignoring a red flag and buying a vehicle that’s been in an accident can be hazardous for reasons including:
- There could be unreported (hidden) problems that could cause issues down the road, e.g. long-term engine damage.
- There may be higher maintenance costs.
- Repair quality isn’t always flawless.
When purchasing cars that have been in accidents, you should get all the information you can before making a purchase. Even anecdotal information can make a difference, especially if it’s about small amounts of damage that are worse than they look. Always purchase from reputable sources to avoid the impact of these disadvantages.
Ultimately, it is your choice whether to invest in this type of vehicle. If you are looking to purchase a less expensive car and don’t mind the possibility of unreliable repair work, buying a car that’s been in an accident might be the right option for you. Buying used vehicles damaged by accidents isn’t for everyone, and we will discuss why in the following section.
Things to consider before buying a used car with an accident history
Purchasing a used car with a history of accidents is risky. However, it can save you money in the long run, which can spark debate over whether it’s worth buying. Many factors come into play when buying a used car that’s been in an accident. Here are some things you should think about:
- The car’s damage history.
- Type of car.
- The car’s condition after repair.
- Is the title clean, or is it a salvage title?
- Does the accident show up on the vehicle history report?
- How did the test drive go?
- Is the vehicle priced right, considering its history?
Many used car shoppers won’t bite the bullet and buy pre-owned cars that have been damaged in the past. For those who do, they ensure it’s properly repaired and understand how damage history impacts value. However, they might not consider whether the vehicle can be insured or not. Read on to learn how you can determine if your car is insurable before buying it.
Ensure the used and damaged car is insurable before purchase
Before you register the title ownership of any new or used car, you have to purchase a car insurance policy. This is another cost to consider. The accident history impacts the premiums you pay, and whether it was a major or minor accident can alter your rates. You also want to ensure the vehicle’s history doesn’t prevent it from being insurable, specifically if it was in a major accident.
Minor accidents such as dents and scratches are considered simple repairs. They are often inexpensive to repair and make it easy for buyers to get reasonable deals when they are fixed at a body shop. Always head to a licensed mechanic to ensure your vehicle is in working order. If the used car you are buying was in a major accident, there’s a possibility that the insurance company or the prior may have disposed of the salvage titles. A vehicle resold as a salvage might have significant structural damage. In turn, the vehicle’s overall safety might put it at risk for further accidents and, therefore, be uninsurable. Speak with your insurance broker about the registration history before you purchase to prevent this costly mistake.
Get in touch with a BrokerLink broker to insure your vehicle today!
Getting car insurance is stressful enough, especially when your vehicle has an accident history. However, working with a broker to find an insurance company that offers a policy that suits your needs at an affordable price simplifies things.
With your repair records on hand and advice from a professional mechanic, you can get your used vehicle insured. There are many policies to choose from. Some are mandatory, and others are not. These are the ones insurance companies offer to everyone:
- Third-party liability coverage
- Accident benefits coverage
- Direct compensation - property damage coverage
- Uninsured automobile coverage
- Collision coverage
- Comprehensive coverage
- Accident forgiveness coverage
There are advantages to buying a damaged car if the damage is minimal and the price is right. However, an accident history impacts vehicle value, and a used car in bad condition may not be an asset you want to acquire. Let BrokerLink be your resource for all things car insurance. From start to finish, our brokers handle the legwork to make sure you walk away satisfied.