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That panel has definitely been hit before as evidenced by the sheet of bondo that is on it peeling off. Do you know where else this car has been hit? Was it just that panel or whole side? Replacing a quarter panel is not that big of a deal, it will cost a couple $k but not $6k US like they are telling you. If they write it off see if they will let you buy it back and have it repaired with the money you get if you love the car.
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