Question from a reader:
I was involved in a traffic accident without any fault of my own and now need to repair my car. The repair estimate is 900,000 yen, and I purchased the new car for 3,800,000 yen five years ago. The estimate for the damaged car is 600,000 yen. I’m struggling with whether I should buy a new car
instead of repairing it, as I originally intended to use it for another eight years. What would you do? Which option do you think is better in general? I would appreciate any advice.
Choices After a Traffic Accident: Should You Repair or Buy a New Car?
Hello! Today, I’d like to answer a question from someone who has been involved in a traffic accident. Specifically, they are struggling with the choice between repairing their car and buying a new one. It’s understandable to feel confused in such a situation. I also experienced a minor accident a few years ago, and I really struggled with the decision at that time. I hope to provide useful information from a legal perspective based on that experience.
Organizing the Situation of the Accident
First, let’s organize the questioner’s situation. They purchased a new car for 3,800,000 yen five years ago, and the current estimate for repairs is 900,000 yen, while the value of the damaged car is 600,000 yen. I understand the feeling of wanting to use the car for another eight years. Considering the emotional attachment to the new car and future lifestyle, it’s natural to be torn between the two options. When involved in an accident, the first thing to consider is the fact that there is “no fault.” In this case, you will negotiate with the other party’s insurance company. When there is no fault, it is generally the case that the other party will cover medical expenses and vehicle repair costs. However, how to actually proceed with repairs or replacement is a separate issue.
Choosing Between Repair and New Car: What to Base Your Decision On
Now, let’s consider the main topic of whether to repair or buy a new car. Please refer to the following points.
1. Comparing Repair Costs and Vehicle Value
The repair cost is 900,000 yen, and the estimate for the damaged car is 600,000 yen. If you choose to buy a new car, you would likely select a vehicle in the same price range, but if the current car’s value is 600,000 yen, it could be more economical to repair and continue using it. Of course, the condition after repair and future maintenance costs also need to be taken into account. A friend of mine had a car that was repaired but soon faced another issue, so that is something to be cautious about.
2. Future Usage Plans
You mentioned that you intended to use the car for another eight years, but consider whether you can realistically operate it for that duration. If you anticipate changes in your lifestyle or how frequently you will use the car, it might be worth considering a switch. I also switched to a family car after having a child, and it was very helpful during that time.
3. Reviewing Insurance
In the case of repairs, insurance often applies, but you also need to consider the possibility of increased premiums. Additionally, there may be a reduction in bonuses after the accident, so it’s important to estimate the overall financial burden. I was surprised once when negotiating with an insurance company and received a lower estimate than I expected. This might be a good time to review your insurance coverage.
Emotional Aspects
So far, I’ve discussed this from a theoretical perspective, but let’s touch on the emotional aspects as well. A car is not just a means of transportation; it holds memories and attachments. My first car was filled with many memories, and letting it go was emotionally difficult. On the other hand, getting a new car can also signify a fresh start. When I purchased a new car, I was filled with joy and excitement. It’s important to choose an option that aligns with your lifestyle and values.
Seeking Expert Opinions
Finally, as one option, I recommend seeking expert opinions. Consulting with automotive repair professionals or insurance consultants is vital to understanding specific numbers and conditions. I have found that consulting with experts often leads to unexpected options being presented.
Conclusion
Ultimately, the choice between repairing your car or buying a new one varies depending on individual living conditions and values. From a financial perspective, repairing may be more rational, but the emotional aspects cannot be ignored. In any case, it’s important to think calmly and make a choice that suits you best. I sincerely hope you can make the best decision. Wishing you a comfortable driving experience in the future!
