The short answer is that an accident can depreciate a car's value by 10% to 40% or more, depending primarily on the severity of the damage and the quality of the repair. A minor fender-bender might only cause a 10-15% drop, while a major accident with structural or frame damage can slash the value by over 30%, making it difficult to sell at any price.
The core reason is the vehicle history. Once an accident is reported to services like Carfax or AutoCheck, the car's title may be branded as "accident-damaged" or, in severe cases, "salvage." This creates immediate skepticism among future buyers and dealerships, who fear hidden problems, compromised safety, and potential future issues, even if the repairs look perfect.
The impact varies significantly based on several factors:
| Factor | Low Impact Scenario (Minor Depreciation) | High Impact Scenario (Major Depreciation) |
|---|
| Severity | Cosmetic damage (scratches, small dent) | Structural/frame damage, deployed airbags |
| Repair Quality | Repairs done by a certified shop with full documentation | Shoddy repairs, mismatched paint, no records |
| Vehicle Age/Value | Older, high-mileage car | New or luxury vehicle (e.g., Mercedes, BMW) |
| Parts Replaced | OEM (Original Equipment Manufacturer) parts used | Aftermarket or used parts used |
If you plan to keep the car for many years, the depreciation hit matters less. However, if you intend to sell or trade it in within a few years, the financial impact is substantial. When trading in, dealerships will offer significantly less. For a private sale, you must be fully transparent and provide all repair documentation to justify your asking price. Ultimately, an accident doesn't just cost the price of the repair; it also includes this significant, often hidden, loss in resale value.
