Expert: Gary - 7/27/2008

Question
My 2007 Lexus IS 250 AWD was smashed in the rear with the major impact pushing the bumper within 12" of the driver's side rear tire. If the insurance company insists on repairing the car, how much will the value of the car decrease for trade-in consideration. In other words, does major repairs affect the value of this car? current trade-in was $28.8K before the car was hit at a high speed by a small suv.

Thanks

Answer
Hi Paul,

The question is would you buy a car that you knew had previous damage and give the same price as one that had been in no accidents? If you know it of course you wouldn't. If the damage was you fault you may have no choice but to accept it after the repair. If it was caused by another driver I would fight tooth and nail to make them replace my car with one like it that had no damage. It will be a hard fight if the insurance company thinks that it can be fixed well enough to pass inspection. You may need to see a lawyer to check where you stand.