How Much Does an Accident on Carfax Affect Resale Value Percentage

The resale value depends on the condition after an accident. The Carfax report will only show that the car has been reported to the insurance company for an accident. Although a minor accident can, of course, hurt a vehicle's resale value in dealership markets.

In this article, we will understand how much an accident affect resale value of a vehicle. Let's find out.

How an Accident Affects Vehicle Resale Value

When a car is involved in an accident, its resale value can take a hit, even after repairs. The main reason is that many buyers are wary of cars with accident histories, especially when purchasing a used vehicle.

While some buyers may not mind a minor fender bender, others may be hesitant to purchase a car that has been involved in a major accident. A car's history of accidents suggests a higher likelihood of mechanical issues or poor repairs, which can reduce its overall value.

This is where Carfax comes into play. It helps buyers understand the car's history, including any accidents that were reported to the insurance company. Cars with no accidents typically sell for higher prices than those with a history of repairs or accidents, as buyers tend to pay a premium for peace of mind.

Carfax Report: Does It Show All Types of Accidents?

A Carfax vehicle history report shows accidents, hail damage, title changes, and mileage, but it does not list all types of accidents. Therefore, you should be aware of the hidden wear and mileage fraud.

For example, if a car was involved in a small accident but wasn't reported to the insurance company, Carfax may not have any record of it. On the other hand, if the accident was more serious and led to major repairs, it will likely show up on Carfax, and you can expect a corresponding drop in resale value.

The Percentage Impact on Resale Value in the American Market

The American car market is quite huge, and accidents can certainly impact your vehicle's value. Not only in the USA, but the resale value will be affected worldwide. On average, a car's resale value can drop by 20 to 30 percent after a major accident, and this figure can vary depending on the severity of the crash and the extent of the damage.

However, if the car has minor scratches or some dents, it may only reduce the value by around 10 percent.

Buyers typically expect lower prices for cars with accident histories and are less likely to pay top dollar for them. So, if you're selling a car with an accident history, be prepared for lower offers from potential buyers.

Minor vs. Major Accidents: Different Impacts on Resale Value

Not all accidents are created equal when it comes to resale value. Minor accidents or , such as small fender-benders, typically have a smaller impact on a car's resale value compared to major accidents. The key factor here is the extent of the damage and how well the car was repaired.