Did you know that when your car is involved in an accident it's value diminishes according to the extent of the damage done? The more damage, the more value is lost. Even a small fender bender can cost you hundreds of dollars when you decide to sell or trade your car. Major car repairs will take away from your car's value by thousands. Many people try to repair their own cars after an accident. While this may save you money now, in the long run, it may cost you more than you think.

A well trained eye can pick up the smallest details when you show your car to potential buyers. Even before you tell them it's been in an accident, they'll know. Trying to hide the fact will only take away more value on the car you want to trade or sell. Sometimes the damage is so severe that your insurance company will consider your car to be a total loss. In this case, everyone thinks the car is worthless. Everyone except the local junkyard. They purchase your car for pennies on the dollar. After that, the car either sits in the yard to be used for parts or goes into the auto shop to be reconstructed.

When the car is reconstructed, it must go through a strict inspection. If it passes the inspection, it is given a new title. This title is referred to as an "R" title. This allows everyone to know that the car has been in a bad accident. An "R" title car is safe to drive but alot of people will not buy them because of the fear that the reconstruction was not done properly. This type of title alone will diminish the value of the car by thousands of dollars. An example could be as follows....two 1997 Ford Mustangs at the same dealership. Same motor and transmission. Very similar in options and equipment.

One Mustang has a normal standard title and the other has an "R" title. Both cars appear to be in very good condition. The Mustang with the normal title has a price tag of $5295.00 while the Mustang with the "R" title has a price tag of $3295.00. The "R" title lets potential buyers know the car has been badly damaged. Most people will opt for the car with the normal title even though it costs $2000.00 more. Ultimately, any accident or repair to your car diminishes it's value. The amount of decline is determined by the amount of damage.