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Repair or sell? What to do with a financed car after an accident
Repair or sell? What to do with a financed car after an accident
If your financed car has been in an accident, you may be asking: ‘Should I fix it or try to sell it as-is, even though I still owe money?’ You’re not the only one in this situation. Many South African drivers face this stressful decision every year. We want to guide you through your best options, financially and practically, so you can decide whether to repair or sell a damaged car still under finance.
Understanding your situation: You're still financing a damaged car
Being involved in an accident is bad enough. But the situation becomes even more complicated when you still owe money to the bank.
The good news? You can sell a financed, damaged car in South Africa, even if you’re uninsured. It depends on how much you still owe, how badly the vehicle is damaged, and what your lender will negotiate.
Let’s unpack your options:
Option 1: Repair the car
This may seem like the obvious route, but it’s not always the smartest one.
Repairing may make sense if:
- The damage is minor, and insurance covers most of the cost
- You want to keep the vehicle long-term
- Your loan balance is close to being paid off.
But repairing might be risky if:
- The cost of repairs exceeds the car’s current value
- The car’s resale value will drop significantly post-accident
- You’re under financial pressure.
If you’re considering whether to repair or sell a damaged car still under finance, get a professional repair quote first, then compare it to the car’s market value before the crash.
Option 2: Sell the financed damaged car
Yes, you can sell a damaged car under finance. Many South Africans in this situation choose to do precisely that.
You just need to settle your outstanding loan (either yourself or with help from the buyer), then transfer ownership.
How to sell a financed, damaged car:
- Get a damage assessment and valuation
- Contact your lender to get a settlement quote
- Find a buyer willing to purchase the car and settle part or all of the loan
- Complete the paperwork. The title is transferred once the loan is settled.
Some companies (like Sell Your Damaged Car) will help you manage the entire process, even if a large amount is still owing on the vehicle.
SYDC negotiates with the bank on your behalf to determine how much you still owe and how much we will pay you for your damaged car.
We answer your FAQs
#1 Can I sell my financed, accident-damaged car?
Yes, you can sell your financed accident-damaged car in South Africa. However, before ownership can change hands, the loan balance must be settled, either before or during the sale.
#2 What happens to my car loan if the vehicle is written off?
If the car is written off and insured, the insurer usually pays the market value. You will then use that money to pay off the loan. If the payout is less than your loan balance, you may need to cover the shortfall yourself, unless you have top-up or shortfall cover.
If you are uninsured, you will need to sell your damaged car under finance and settle the outstanding loan balance through the sale and with additional cash (if more is still owed on the vehicle).
#3 Is it worth repairing a damaged car under finance?
It depends. Fixing it might make sense if repairs are affordable and the car still holds value. But selling the financed damaged car may be better if repairs cost more than the car is worth, or you can’t afford them.
#4 What are my options if I still owe money on a damaged car?
You can either:
- Repair the car and continue with payments
- Sell the damaged car under finance
- Ask your insurer or lender about write-off and settlement options.
Why selling may be the smarter move
More and more people are choosing to sell financed damaged cars in South Africa rather than pour money into costly repairs. Here’s why:
- ✅ Quick settlement of your loan
- ✅ Avoid further depreciation
- ✅ No hidden repair surprises
- ✅ Cash in hand sooner
At Sell Your Damaged Car, we make it easier by offering:
- Free valuations
- Safe, hassle-free online process
- Help settle your outstanding finance
- Free towing of your accident-damaged car
- Instant cash
Weigh up the costs and sell or repair
Deciding whether to repair or sell a damaged car still under finance isn’t easy. But by weighing up the repair costs, outstanding loan balance, and resale value, you can choose the path that makes financial sense.
If you’ve decided to sell your financed damaged car in South Africa, we're here to help.