If you are in a serious accident that causes a significant amount of damage to your vehicle, you might be wondering whether you should repair it or scrap it and buy a new one. In many situations this will be determined by the car insurance company that is paying on the claim. If you are in a situation where an insurance company or driver will not be picking up the tab for your repairs, you have to consider whether it is worth the effort to repair the car or not.
Fair Market Value
If you want to see if it makes financial sense to repair your wrecked car, your first step is to determine the fair market value of the vehicle after all repairs have been made. There are several online tools that will help you do this. You should also get several repair estimates. If the cost of the repairs is significantly more than the market value of the car, it really isn’t a wise investment. On the other hand, if the repairs are the same or less, it would be financially worth it to fix the car.(more…)