34782111 - hail damage on the hood of a blue car

HAIL DAMAGED CARS – NOT A BARGAIN!

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34782111 - hail damage on the hood of a blue car

The new and used car lots have been pelted with hail all around Colorado.  That means plenty of “Hail Sales” promising big savings.

WARNING – DON’T BUY HAIL DAMAGED CARS! They are no bargain.

Why do I say this?  Consider the following:

  • Many lenders won’t even loan you money on a damaged car unless you first get it fixed.  That means much, if not all, of the money you save buying the car will be eaten up in repairs.
  • But what if you decide to pay cash and not get it fixed?  Then you’ll have insurance headaches. Insuring an already-damaged car with comprehensive and collision is a waste of money.  Let’s say you have $4,000 in hail damage and you get into an accident or suffer more storm damage.  Your insurance company will deduct $4,000 from your claim.  So any money you saved on the purchase vanishes!
  • What if someone hits your car?  The other insurance company will also deduct all previous damage from your claim.
  • What about buying a car for a big discount that more than makes up for the repair costs? Doesn’t that make sense?  No.  Any time a car is damaged, and fixed, it suffers diminished value.  So when you go to sell it or trade it, car-karma will catch up with you!  You will get less for the car than you would’ve gotten without the damage history.

The bottom line:  When you buy at a discount due to damage, it will “almost” always catch up to you and you’ll end up losing any advantage in one way or another.

I wrote “almost” always above because there is an exception.  You’ll be fine if you buy a car for a big-fat discount, don’t get it fixed, don’t insure it, don’t get in any accidents and keep it until the wheels fall off.



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