How to Value Car after Hail Damage?

How Much Does Hail Damage Devalue a Car?

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The specific amount that hail damage decreases a car’s resale value depends primarily on two factors:

1. The severity of the damage – minor dents or small surface pockmarks of less than 1 inch barely harm value unless wholly covering a vehicle. Isolated door dings can reduce pricing by only a few hundred dollars. However, extensive hail damage spanning most body panels or exposing metal significantly impacts pricing. Value loss directly correlates to the repair costs—often exceeding the expenditure to fix the issues.
2. Overall condition and value of the car – A newer $40,000 car sustains $3,000 worth of isolated hail damage, causing little impact on resale pricing. But an older $5,000 economy car battered with a couple of thousand dollars of damage can make it nearly worthless. The resulting ratio of diminished value to initial worth determines the true impact.

For example, $3,000 of hail damage on a $10,000 sedan reduces its value by 30% – a serious blow to its worth. Compared to a $2,000 repair bill on a $30,000 SUV, lowering its value by just 7%.

The average devaluing of hail damadeged car is at $250 per dent.

Regardless of the ratio of repair costs to baseline pricing, hail damage unquestionably hinders private sales. Savvy buyers recognize less-than-perfect exteriors suggest potentially hidden deficiencies.

Related: How to Sell Damaged Car in 48 Hours?

Should You Repair Hail Damage Before Selling the Car?

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Here are some key considerations in deciding whether to fix hail issues before listing your car:

• Repair Cost vs. Reduced Resale Value: obtain quotes from body shops to estimate the repair costs. Then, assess how much the car’s value decreases due to the damage. If the expense of fixing dents or replacing panels is lower than the potential loss in resale value, it’s financially wiser to opt for the repairs.
• Likelihood of Sale: visible exterior damage often discourages buyers who are reluctant to purchase vehicles requiring additional work. Unless the car is significantly discounted, buyer interest is likely to be low. Prolonged time on the market can equate to financial loss.
• Rust Prevention: hail dents exposed to metal can lead to corrosion and rust due to moisture exposure. Repairing such damage early can prevent more extensive harm over time.

When deciding to repair hail damage before selling your car, consider the balance between repair costs and the potential reduction in resale value and the importance of addressing damage promptly to prevent rust and further deterioration.

How to Price a Hail Damaged Car?

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To accurately assess the value of a hail-damaged vehicle, gather key details for evaluation:

1. Obtain Detailed Repair Estimates: seek quotes from several reputable body shops, specifying every repair needed to fully address both cosmetic and structural damage. Ensure these estimates are based on comprehensive inspections, not quick superficial assessments.
2. Determine the Value of an Undamaged Car: Find the standard market price for a similar car without damage, considering factors such as the car’s year, make, model, mileage, and overall equipment level. Tools like Kelley Blue Book can provide reliable average resale values.
3. Estimate the Diminished Value: calculate the loss in value due to the damage by subtracting the total estimated repair costs from the car’s standard value as per valuation guides. This difference reflects the depreciation caused by the hail damage.
4. Stay Cautious of Hidden Defects: even if the panels align perfectly or the paint appears flawless, there could be hidden damage, such as internal cracks or frame distortions. Informed buyers may use these potential issues to negotiate a lower price, preparing for the possibility of expensive repairs later.

Related: How to Price Your Car?

How to Sell a Hail-Damaged Car?

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There are three primary methods for selling hail-damaged vehicles: you can sell online via services like Peddle, Wheelzy or CarBrain, which purchases damaged vehicles, sell privately to individual buyers on CarGurus or Autotrader, or salvage the car by selling it to junkyards or auto recyclers.

1. Selling Car Online

Online car-buying companies specialize in buying all types of used cars, including flood and hail-damaged vehicles.

How to sell a car online:

1. Fill out the online form – provide the car’s make, model, and mileage and describe the condition.
2. Accept the offer – you will get an instant cash offer valid for 7 days.
3. Schedule pickup – the company can pick up your car within 24-48 hours at no extra cost.
4. Hand over the Title – sign and provide the agent with the Title. You won’t need any additional paperwork.
5. Get paid – you will get paid for the type of car’s pickup. You can choose between a check or cash.

Best companies to sell a hail-damaged car online:

Peddle

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Peddle is among the top choices to sell your hail-damaged car as the company operates in all 50 states, providing an accessible way to sell your car.

Peddle has a 4.6 rating of more than 124,000 reviews on Trustpilot.

Reasons to sell to Peddle:

• Guaranteed instant cash offer
• Quick process (get paid within 48 hours)
• No paperwork hassle
• Safe payment (cash or check)
• No fees

Wheelzy

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Wheelzy is also available nationwide, catering to all 50 states plus Ontario, Canada. 

The company has a 4.7 rating from over 42,000 reviews on Trustpilot.

How to sell the hail-damaged car to Wheelzy:

• Fill out the online form (provide the car’s make, model, year, zip and phone number)
• Get a cash offer (a representative will contact you within a few minutes)
• Accept the offer and schedule pickup
• Get paid

You can also contact Wheelzy via phone at (855) 510-1108. The offer will be valid for 7 days.

CarBrain

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CarBrain offers services all throughout the United States and has a 4.8 rating from more than 5,000 reviews on Trustpilot.

To sell a car to CarBrain, fill out an online form or call CarBrain at (877) 877-7911 to get an offer.

As it uses advanced technology for valuation, a representative will contact you minutes after sending your application. 

Once you accept the offer, CarBrain usually takes one to two days to pick up your car. You’ll also receive the payment in check before the agent takes your car.

2. Selling Car Privately

Selling a car privately usually demands fielding inquiries, arranging safe meetings for test drives, and negotiating pricing in person.

On average private sales take 52 days, but when it comes to selling damaged cars this timeframe can be significantly longer.

Steps to sell a hail-damaged car privately:

1. Find out the market value of the car.
2. Gather the required paperwork.
3. Prepare the car for the sale.
4. Take great photos.
5. Post a detailed ad.
6. Screen potential buyers.
7. Agree on a safe payment method.
8. Sign the Bill of Sale.
9. Transfer Title.
10. Inform DMV about the sale.

Related: Guide How to Sell a Car Privately

3. Selling Car to a Salvage Yard

Selling a car to a salvage yard is often considered a last option due to their tendency to offer minimal compensation, typically far less than the car’s actual value.

To determine the potential earnings from selling a hail-damaged car to a salvage yard, use online resources to locate nearby salvage yards. Aim to identify at least three to four reputable yards for quotes.

When reaching out, either by phone or online, be sure to provide comprehensive details such as the car’s make, model, year, overall condition, and mileage. This information helps the salvage yard to estimate the car’s value, especially in terms of part resale.

Obtaining quotes from multiple salvage yards is advisable. It increases the likelihood of getting a better deal, as you can compare offers and possibly negotiate a higher price.

Tips for Getting the Best Price When Selling a Hail Damaged Car

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• Emphasize Completed Repairs: actively showcase any high-quality repairs you’ve made, especially those under multi-year warranties. This reassures buyers about the car’s condition. Highlight aspects like expert refinishing and dent removal, and use photos to document these fixes, demonstrating transparency and dispelling any concerns about hidden issues.
• Focus on Unaffected Features: shift the spotlight from past exterior damage to the car’s well-functioning mechanical aspects. Stress the reliability of the engine, transmission, new tires, recent battery replacements, upgraded sound systems, or additional features like sunroofs. Highlighting these positives can be very persuasive.
• Showcase Maintenance History: providing a detailed history of dealership maintenance can prove your commitment to the car’s upkeep. Reassure potential buyers that regular services, such as fluid changes, brake maintenance, and belt replacements, have been consistently performed, indicating the car has been well-maintained despite any past damage.
• Seek Multiple Offers: to maximize your selling price, consider offers from various buyers. This approach creates a competitive environment, potentially leading to higher offers. Politely inform potential buyers about existing offers to encourage better bids but avoid fabricating non-existent proposals.
• Set Reasonable Expectations: Remember that selling any used car at a high price, especially one with a history of damage, can be challenging. Aim high, but be prepared for offers that may be lower than your ideal price. Any sale that exceeds typical trade-in values should be considered a success.