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How You Can be Able to Know if a Car is Totaled
There are cars that may seem like they are in good condition and can still be driven but in most cases are considered totaled. What makes a car to be totaled is if the value of the car and the damages to repair it amount to 70% then that car is considered totaled. Below are some of the ways that you can be able to know if a car is totaled.
It is easy to know if a car is totaled when you know how old it is. Some cars may look like they are in good condition even after ten years but they may be costly to fix when they get involved in an accidents. The thing about older cars is that when you go to repair one thing, you may find that another thing needs to get repaired as well which ends up being very expensive.
Another thing that you need to consider when you are trying to determine if your car is totaled is the worth of your car. Most people think that the worth of the car is usually determined by what is in the books but mileage,other features as well as the area the car is in can equally help to determine the worth of the car. According to research, new cars are depreciating in value at a very high rate and things like damages can even cause the depreciation rate to be much higher and that is why doing simple upgrades is important since it helps to increase the value of your car.
When considering if a car is totaled, you also need to consider the overall cost of repairs since various additions in a car can raise the total repair cost after an accident. Replacing the additional features can make the total cost of repairs go higher as opposed to if you were repairing the primary features. As if the cost of repairs are not enough, you may have to deal with labor cost as well making the repairs costlier.
When you get paid some salvage amount from the insurance company, you are able to keep the car if you do not want to let it go. The value of your car will be significantly lower when you get paid a salvage amount for it but it is important to not take the first offer you get. With salvage amounts, it is important to decline the first offers that you get so that you are able to have some bargaining power especially if you have done some repairs recently.
Should you have ongoing payments on, it is important to remember that the lender gets the proceeds first and you get what is left over. In the event that a car is totaled, you need to remember that the insurance will cover the cost of the car and not the financing and for info. you can learn more on this homepage. It is therefore wise to take up gap financing insurance since it will help clear the loan regardless the value of the car.