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.