Repair or Total? Need Your Advice!
My wife and I recently received an estimate from her insurance company regarding the damage to her car. The adjuster mentioned that it’s close to being a total loss and gave us the option to either total it or proceed with repairs (assuming no additional damage is found during the repair process). We’re looking for some guidance on what to do next.
- The car is a 2021 Tucson with 55,000 miles.
- The estimated repair costs are around $7,500, but there could be additional expenses. If repair costs exceed $4,000 more, we will have to total it regardless.
- The visible damage primarily affects the left rear quarter panel and bumper, and there could be some alignment concerns.
- They appraised the car at about $17,000, and since she still owes around $7,000, we’d receive nearly $10,000 if we choose to total it.
Here are our main concerns as we weigh our options:
- What will the market look like in 4-5 years when we’re ready to trade in the car? (Considering factors like the economy, tariffs on foreign cars, etc.)
- How might the repairs impact the car’s value in the long run?
- Would it be wiser to take the $10,000 now rather than trying to keep the car until the warranty expires, enjoying a couple of payment-free years, and then trading it in?
Any insights or advice would be greatly appreciated! Thank you!
It sounds like you have a tough decision to make, but let’s break down the factors to consider.
Financial Situation: If you total the car and receive around $10,000, you could pay off the remaining balance of $7,000 and have some cash left over. This might give you the option to put a down payment on another vehicle or potentially purchase a used car outright. If you choose to repair the vehicle, understand that you’ll still have a payment and the risk of additional costs if unexpected damage arises during repairs.
Vehicle Value and Resale Potential: The car is relatively new, but repairs can impact its resale value. A car that has been in an accident—especially if it required significant repairs—may not hold its value as well as one that has not. If you keep the car and repair it, consider that its value may drop when you go to sell it in a few years, especially if you have a record of it being classified as “borderline totaled.”
Future Market Conditions: Predicting the market is never easy. While you might be concerned about the economy and factors like tariffs, new car prices have remained high due to supply chain issues, which could keep the value of used vehicles elevated for a while. However, it’s still uncertain how evolving economic conditions might affect car values in the future.
Warrantee and Reliability: If you choose to repair the car, you’ll enjoy the remaining warranty coverage, which means you’re less likely to face unexpected repair bills in the near future. New parts will typically come with a warranty as well. However, if the car has underlying issues that aren’t visible now, those could pop up later.
Personal Preference and Lifestyle: Think about how much you enjoy driving the Tucson. If you love it and it suits your needs, it might be worth holding onto, assuming repairs are made and the car remains reliable. Conversely, if you think it’s time for a change, cashing out now might be the way to go.
Ultimately, weigh the immediate financial benefits of totaling the car against the potential long-term enjoyment and reliability of a repaired vehicle. If you’re leaning one way, it might help to gather more quotes for repairs and discuss further with your insurance agent for more insight into how repairs might affect future claims and value. Best of luck with your decision!