2nd November 2019

carinsurance
13

Is my car worth less after an accident?

A car that has never been in a crash may be worth $15,000 at resale but thousands less if it has been in an accident and repaired. Diminished value insurance claims allow car owners to recover the difference between a car's pre-accident value and its value after repairs. Don't expect the insurance company to help.

In this manner, why does a new car depreciate so fast?

Cars depreciate because they're an asset that wears out over time. The same goes for the machines used in factories or the commercial grade mixer at your local bakery. Depreciation helps account for that diminished value. Cars will depreciate all the way down to the value of their raw materials (their metal primarily).

What is the average rate of depreciation for a car?

While different cars depreciate at different rates, it's a good rule of thumb to assume that a new car will lose approximately 20 percent of its value in the first year and 15 percent each year after that until, after 10 years, it's worth around 10 percent of what it originally cost.

How much mileage is good for a used car?

You should consider the current mileage when purchasing a used car. Of course, the fewer miles it has been driven, the better. An average of 12,000 miles per year is considered the norm. Of course, some cars are driven less than that, but many are driven much more due to long commuting distance.
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