Repair or Total the Car?
My wife and I have received an estimate from her insurance company regarding the damage to her car. The adjuster stated that the vehicle is nearly totaled and provided us with the option to either total it or proceed with repairs (assuming no additional damage is found by the repair shop). We’re seeking your advice on what to do next.
Here are the key details:
- It’s a 2021 Tucson with 55,000 miles on it.
- Repair estimates are around $7,500, but costs could increase, and if it exceeds an additional $4,000, we might have no choice but to total it.
- The visible damage primarily affects the left rear quarter panel and bumper, with possible alignment issues.
- The car’s value is estimated at about $17,000, and there’s still $7,000 owed on it. If we decide to total it, we’d receive just under $10,000.
Our main concerns in making this decision include:
- Market considerations over the next 4-5 years when we might want to trade it in (economic factors, tariffs on foreign vehicles, etc.).
- How the repair work might affect the car’s future value.
- Essentially, is it better to take the $10,000 now, or should we aim to keep it until the warranty expires, potentially enjoy a few years without payments, and then trade it in later?
We would greatly appreciate any insights or advice you may have!
Deciding whether to repair the car or have it totaled can be tough, but let’s break down the key points to help you make an informed decision.
Current Financial Situation: If you total the car, you’ll receive nearly $10k, which can help pay down debts or be put towards a new vehicle without the burden of the remaining loan. On the other hand, if you choose to repair, you’ll still owe the $7k on the car, and you’ll need to factor in the potential additional repair costs.
Future Value: Cars that have been in significant accidents often lose value, even after repairs. Buyers may be wary of a history of damage, which could impact resale or trade-in value down the line. If this is a concern for you, the totaled option might provide a clearer path forward.
Market Conditions: Given your concerns about future market conditions, it’s worth considering that with the right maintenance, a 2021 Tucson could still have decent resale value in a few years. However, if the market fluctuates negatively, holding onto the car might not be as beneficial.
Warranty & Reliability: If you keep the car, you could potentially enjoy a couple of years without car payments (if repairs are done right and no additional problems arise), alongside the peace of mind of being under warranty. Maintaining a good service history can also help with reliability.
Lifestyle Considerations: Evaluate how crucial the car is to your daily life. If it’s essential for work or commuting, and repairs are expected to restore it to a safe and drivable condition, that might weigh in favor of keeping it.
In conclusion, if you’re leaning towards a more stable financial path and less risk, totaling might be the best option. On the other hand, if you’re willing to take a chance on the repairs and keep the vehicle for a few more years, then repairing could work out well as long as there are no significant underlying issues. Weigh these factors carefully against your long-term goals and circumstances, and you’ll get closer to the right decision for you both!