CPO S60 - CARFAX says Accident, very minor damage

tmoney468 · Apr 16, 2021

So I've been obsessed with getting my first Volvo, found a new one listed at a local Volvo dealer, 2020 S60 R Design, only negative is the CARFAX says it was involved in an accident with very minor damage to the front and rear:

https://www.carfax.com/VehicleHistory/p/Report.cfx?partner=dlr_3&vin=7JRA22TM2LG050596

What are your thoughts on getting a CPO with an accident history? I guess my main pause is the reduced value if/when I were to trade in years down the road.

Is this something the CPO checklist would go over, or would it be advisable to have a local mechanic check for damage?

Really appreciate any thoughts, thanks!

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DFrantz · Apr 22, 2021

You're spot on that deprecated value is the biggest challenge. CPO should have ensured there is no lingering damage from this, but it hurts the market value (both wholesale and retail). IMO these can make some of the absolute best values on the market if you shop them right. Generally they sit on lots longer, end up with a lower transaction price, and should be owned for less by the selling dealer. So if you are someone who keeps a car for 10+ years, these really should be the ones you look for the maximize that value... because the deprecation at the 10 year mark is negligible, and you took advantage of it on the purchase side. But if you plan to only keep the car a few years, it probably is better to find one without the accident because it's sorta a net value, and has some (though likely minor) increased risks.

Also, consider how long after the accident the car was traded in. If it was traded in shortly after, that's a bigger red flag than if it was 2 or 3 years ago. Not to say there is a problem, but in terms of risk mitigation. Folks won't keep a car long if they suspect there are issues.

MyVolvoS60 · Apr 22, 2021

The devil's in the details. I'll give you a prime example. My car has been backed into and rear ended. Both minor overall damage. No CarFax reporting (No police Report Filed). Both times a new bumper cover. Nothing major. So no one buy I know it happened. Far as history as concerned, my car is spotless.

Unfortunately, once a car accident gets reported, people become "skeptical". How much was damaged? Was the car repaired properly? How minor is "minor"? Did any airbags deploy? Etc Etc. The accident could be nothing more than someone tapped the car, but now the car isn't pristine.

So @DFrantz is 100% right. You use this to drive down the car's price as much as possible. Cars with an accident history are a harder sell, hold less value, and are less appealing to buyers. It's not like a 2020 S60 R Design is a rare classic that's sought after by collectors.

So your outlook need be:

1. Get a complete report of the accident
2. Get a complete record of what was repaired

I would say there's one thing for pause on the CarFax. Right after the car was hit, the vehicle was inspected for electrical problems. So you'd really need to get the service report.

3. Assuming all checks out, dealer offers a great price, then it boils down to longterm ownership. If you keep this car for 10 years, no one cars about an accident. If you plan to drive 2-3 years and sell, it's definitely going to have an impact on trade in / resale value.

tmoney468 · Apr 28, 2021

Thanks for all of your points, they all make sense.

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GrecianVolvo · Jul 16, 2021

DFrantz said:
Also, consider how long after the accident the car was traded in. If it was traded in shortly after, that's a bigger red flag than if it was 2 or 3 years ago. Not to say there is a problem, but in terms of risk mitigation. Folks won't keep a car long if they suspect there are issues.

Not necessarily; it could be a leased car and most leases are 36 months long.
Additionally, as you know, most people don't keep a car past the 42nd month of ownership (if they buy) so that could be in play as well. Coupled with this report that shows "minor damage", it would not make sense to think there are "lingering issues"....

MFinMN · Jul 16, 2021

GrecianVolvo said:
Not necessarily; it could be a leased car and most leases are 36 months long.
Additionally, as you know, most people don't keep a car past the 42nd month of ownership (if they buy) so that could be in play as well. Coupled with this report that shows "minor damage", it would not make sense to think there are "lingering issues"....

Where did you get the info that most people don't keep a car past the 42nd month of ownership? Everything I've seen on the internet suggests that the average length of vehicle ownership is significantly longer than 42 months.

MyVolvoS60 · Jul 16, 2021

GrecianVolvo said:
Not necessarily; it could be a leased car and most leases are 36 months long.
Additionally, as you know, most people don't keep a car past the 42nd month of ownership (if they buy) so that could be in play as well. Coupled with this report that shows "minor damage", it would not make sense to think there are "lingering issues"....

The Long Haul: 15 Vehicles Owners Keep For At Least 15 Years

If you prefer to literally drive a car into the ground than trade it in every two or three years, here's the real long-distance runners.

www.forbes.com

Written in 2018 anyway so a few years old.

According to an IHS Markit study, the average length of new-vehicle ownership in the U.S. stands at 79.3 months, or nearly seven years.

Looking at other sources: Swing seems to be around 70-80 months. Of course in 2021, with the chip shortage, anyone having an extra car looking to make cash might be motivated to sell right now. Since used cars have appreciated in value, for the first time ever.

Attaractor · Dec 10, 2022

I think the damage is not a problem as long as it doesn't have some dark accident history behind it. I mean cars that were involved in court cases, not just the fact of the accident itself. I witnessed such a sad story. My friend was hit by a drunk driver and that guy hit another car trying to escape. Fortunately, there was a dashcam in the car, so the owner willingly shared the offender's license plate number with us when we were able to contact him. We looked for the car for a week, and when we found it, it turned out that the new owner bought it literally two days ago. That idiot decided to sell the car for the minimum price but didn't take into account that selling a car doesn't guarantee him anonymity. He was quickly found and the case was submitted to puschnguyen.com. Therefore, now I carefully ask sellers not only about the damage but also about the accident history itself.

CPO S60 - CARFAX says Accident, very minor damage

tmoney468

DFrantz

MyVolvoS60

tmoney468

GrecianVolvo

MFinMN

MyVolvoS60

The Long Haul: 15 Vehicles Owners Keep For At Least 15 Years

Attaractor

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