Tag: diminished value

How a Minor Accident Affects the Value of Your Car

Written by Formula 1 Collision on August 28, 2025. Posted in Collision Repair.

A fender bender does more than put your car in an auto body shop. It can also impact your vehicle’s resale value.

But, how does minor damage affect your car’s value? Discover the answer in this informative guide from Formula 1 Collision Center.

All Car Accidents Result in Diminished Value

Imagine someone rear-ends you due to distracted driving. Your vehicle sustains minor damage that you promptly fix. However, the accident still leads to greater vehicle depreciation.

Any vehicle with an accident history will become less appealing to buyers. As a result, your car’s trade-in value may not be as high as it would be without any record of damage.

It’s a common misconception that only cars involved in serious accidents lose their value. Even slight cosmetic damage can deter buyers.

The Extent of the Damage Matters

How much does minor damage affect your car’s value? The answer depends on the type of damage the vehicle sustains.

Perhaps you slowly scrape another vehicle while backing out of a parking space. The scratches are purely cosmetic and are fairly simple to fix. The car’s value may depreciate, but only slightly.

A head-on collision, on the other hand, could damage the engine and other essential systems. A good rule of thumb is that the more expensive it is to fix, the higher the depreciation.

Other Factors That Affect a Car’s Resale Value

Accident-related damage can hurt your vehicle’s resale value. However, the amount your car is worth also depends on a few other factors, including:

Its age
The total mileage
The make and model

For example, a 2-year-old car from a luxury brand will be worth more than a 10-year-old vehicle with 140,000 miles on it. New, luxury vehicles may experience more severe depreciation from accidents than older cars, though.

What To Do After Your Car Sustains Minor Damage

If you’re in an accident, it’s important to take these steps to prevent your car’s value from plummeting:

Research trustworthy mechanics: You’ll need a reputable auto body technician to repair the damage. Look for experienced specialists by checking online reviews or asking friends for recommendations.
Schedule prompt repairs: Once you find a mechanic you trust, bring your car to the shop as soon as possible.
Drive safely: After experts fix your car, do everything in your power to maintain its condition. Try to keep your accident history to a minimum by being an attentive, cautious driver.
Have realistic expectations: Should you sell your car or trade it in, remember that your accident history will somewhat lower the value.

Keep Your Car Looking Brand-New With Formula 1 Collision Center

Not only does minor damage affect your car’s value immediately after an accident, but you may experience further depreciation if you have improper repairs done. Avoid this issue by bringing your vehicle to Formula 1 Collision Center. We fix everything from minor glass damage to extensive dents in car frames.

Let our experts get your car back to excellent condition. Give us a call at (520) 369-4291 to schedule auto body repair services in Tucson.

Assessing Car Value After Accident Repair: What You Need To Know

Written by Formula 1 Collision on July 30, 2024. Posted in Auto Body Repair.

Pretty much everyone will be involved in a car accident at some point in their lives. Regardless of whether you are in a small fender bender or a major collision, one thing car owners wonder about is how much the accident will lower the value of their car. With that in mind, the team at Formula 1 Collision Center is here to answer your questions about car value after accident repair.

Schedule an appointment at our collision center in Tucson today! We’ll have your car fixed in no time flat after a crash.

Car Accident Value and Insurance

At the end of the day, what matters is how much your insurance company values your car after an accident, not the “actual” value. If your car has sustained sufficient damage, they may label it as salvaged or rebuilt, which means the total damage to the car outweighs its value.

If your car is not totaled, then whether or not you get repairs matters. Buyers are much more hesitant to buy cars that have issues and prefer vehicles that have a clean bill of health and good repair quality. Regardless of what kind of damage your car sustains, its resale value will drop after an accident.

17c Diminished Value Formula—The Basics

Most insurance companies use something called the 17c Diminished Formula to determine your car value after accident repair. The basic formula is:

Base loss of value x (damage modifier) x (mileage modifier)

The base loss of value is equal to 10% of the car’s Blue Book value before the accident. For example, if your car was worth $20,000 before the accident, the base loss of value is $2,000.

The damage modifier is a percentage your insurance company determines based on the severity and type of damage. The less damage the car has, the lower the damage modifier.

The mileage modifier, as the name implies, depends on the mileage of the car. The less mileage, the higher the mileage modifier percentage.

Will Maintenance Preserve the Value of My Car After an Accident?

A history of regular car maintenance can affect the value of your car after an accident, though not directly. Used and rebuilt cars are much easier to repair if you have comprehensive documentation of all the work performed on the car. So, if you get regular maintenance and document all that work, you will probably have an easier time selling a rebuilt car and can sell it for a higher price. Not documenting car maintenance and repairs can make it significantly harder to sell, depending on the current market trend.

Collision Repair in Tucson and Surrounding Areas

Read our blog to learn more about what causes car collisions. We can help you determine the total value of your car after accident repairs. If you have any more questions about your car value after accident repair, contact Formula 1 Collision Center online or give us a call today at (520) 369-4291 to schedule an appointment!