Re: Car accident - damage might be > value of car...what\'s my play?
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The thing is, the damage being more than the value of the car - even when repaired the car isn't worth its full value anymore. That's why it's a write-off. So it's a false economy to invest money repairing the car when you could add that money to the money the insurance people give you and buy a car instead. It's only really worth paying that sort of money on repairs if the car has some sort of sentimental value, and you can easily afford it.
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The car definitely has no 'sentimental' value. I've really wanted a new car for a while, but it just didn't make financial sense.
The question is - how much would be reasonable to save the car?
Example, $4000 in repairs, they offer me $3500.
For $500, I could basically keep the car, and still drive it forever (only 75k miles!).
The alternative is putting the $3500 towards a new car, but take for example a car worth $10,000, I still owe $6500, which works out to about $200 per month over 3 years on a loan.
So, in 3 months, I'd already have spent more than what the repairs would have been.
However, I would have a new car 'worth' more, but still depreciating.
Does anyone know how insurance companies determine the AVC (actual vehicle cost)? Is it based on blue-books trade in value or retail value?
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