Whether due to an accident, force majeure or other reasons – if the car comes to a damage is bad at first and means a lot of effort, right?
It was a similar story for Peter N. from Karlsbad, whose car burned out due to unknown engine damage shortly after he parked it. Fortunately, no one was hurt, as this could have had a different outcome.
Despite all his luck, Peter is now standing in front of his broken car, can’t get it off the spot himself and is asking himself “Help, what am I supposed to do now? “.
The process is daily business for car insurance companies and salvage exchanges like WOM GmbH. But for private individuals, who hopefully are not often confronted with vehicle damage or accidents, this is new territory for the time being. So it’s best to call the insurance company first!
After the vehicle has been inspected and posted on the WOM auction platform for residual value determination, Peter now has several purchase offers at which he can sell his damaged car or he can decide against selling and have his car repaired.
You can find more detailed information about the process HERE.
Peter’s vehicle is a technical total loss, which means the repair is technically not possible anymore. Therefore, he wants to sell his car at the offer he got from WOM and informs the WOM service team.
Now the WOM service team contacts the highest bidder and confirms the sale. He now picks up the vehicle from Peter within 6 days and pays the previously stated bid price.
So Peter is rid of his car and has enough money to buy a new one!
Find out here what the two parties involved have to say: To the report To the report
Questions around the residual value business
What exactly does residual value mean?
The residual value is the value of a vehicle directly after the accident. The residual value is usually determined via a residual value exchange such as WOM.
What is the replacement value?
The replacement value of a vehicle is the value that the injured party would have to pay for a comparable vehicle from a serious dealer.
What amount does the insurance company pay out?
In general, the insurance company will pay the repair costs for the damage incurred. In the event of a total loss, the insurance company will pay the injured party the difference between the replacement value and the residual value.
How are the repair costs made up?
The repair costs consist of the costs for spare parts and small parts such as cavity preservation, underbody protection, etc., painting costs and labor.
What is a salvage exchange?
A salvage exchange is an online auction platform, such as WOM, on which damaged vehicles are offered for sale and professional salvage buyers submit bids. These bids are used to determine a competitive residual value.
Are there other ways to market accident vehicles?
In addition to the classic salvage exchanges, there is now also the full-service marketing process through Copart in Germany. Here, the focus is not on determining the residual value, but on marketing and selling the vehicle. You can find out more about Copart here: To the website