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How to calculate salvage value of a car

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By Edited Nov 13, 2013 0 0

Did you have an accident that badly damaged your car? Are you wondering what to do with the wreck? If you want to make a decision that would be financially wise and profitable for you, you need to assess your car's value. It might actually turn out that fixing your car is not so much of a bad idea. At the same time, the numbers you will get might prove that repairing it makes no sense. The following text lists the basic steps you need to take while doing this.

 

Actually, the value of the cars that have gone through damage is not rocket science. The first thing you need to know is the actual value of your car, assuming it's in a perfect condition. In order to obtain the numbers, you have to refer to a blue book. This thing contains two important section, called 'Retail value' and 'Trade-in value.' The two are really the essentials if you want to assess your car's value correctly. The first one refers to the car's actual price on the market. This means, you might be expecting such a sum, assuming that you were selling one that has not been damaged. On the other hand, the latter term refers to the sum that you will get if you were selling your car at an auction.


You're probably wondering why the two are so important. Well, in order to assess your car's current price, you will just need to count the difference between the two. Thanks to this, you would get the sum that your car is worth at the moment.


However, the calculations are not over yet. Now, what you need to do is to refer to your insurance company. This is necessary for obtaining the information about the so-called percentage. Actually, it differs from one provider to another. Some offer 75 percent, while other might be giving you slightly better one. Therefore, you have to contact your insurance company directly in order to know the sum. After getting it, you have to do a simple maths. Just multiply the percentage by the car's current market value. Thanks to this, you will get your car's salvage value.

 

Before you do all the counting, you have to remember that prices in the blue book do not only depend on the car's make and model. Instead, in order to assess car's value, you have to take some other factors into consideration, like its actual equipment. Don't forget, the more elements it has, the higher its value is. Apart from this, the year the car was built counts as well (of course, the younger it is, the higher the value.) So, before you start looking for the quotas in the blue book, be sure that you know all the info. This will certainly let you make the calculations right.

 

And one more thing: please don't forget that in calculating salvage value, it is also the car's actual damage that counts. So, the more damaged it is, the lower the price in the end.


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