When faced with a huge repair, consumers often feel backed into a corner and believe their only options are to trade in the vehicle, or upgrade or downgrade the vehicle. But this is not always the best decision.
Some consumers are duped into believing that loading the outstanding finance of the trade-in on to the debt acquired when buying a new vehicle is the best option, but this makes poor commercial sense, particularly in the current tough economic climate. The only beneficiaries here are the finance house and the dealership. The consumer ends up with a lesser-value car and a financial burden over a longer period.
And while writing off the vehicle may make financial sense for an insurer, it may not be the best option for the vehicle owner. Particularly when it comes to older vehicles, the payout may be so small that it’s impossible to buy another vehicle. This may be because the value of the replacement part is disproportionate to the value of the car at the time of the accident.
Consumers should take the time to obtain a second or even a third opinion on the diagnosed repair.