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Something that I have wondered since I first saw this movie all those years ago. Is what happens to Charlie's body after he is hit by a car and how does he manage to always get a new one despite dying multiple times?

First time: Hit by a car - It's the same body, that's why he was hacking and coughing when he pulled himself out.

Second time: Anne Marie's room - He was given a temporary body by the Devil and lost it when he went to Heaven.

Third time: Second movie - The collars given to him and Itchy turned their spiritual bodies physical.

Fourth time: Second movie, end - Annabelle obviously gave Charlie his own body again so he could live on Earth.

You pretty much explained it

ok. So the last time he recieved a new body was it his old one from before or another created somehow?

Probably created by Annabelle. Beside, if the Devil can give Charlie his body temporarily in the first movie, why can't Annabelle give him a permanent one?

EDIT: Besides, his old body was sunk with the ship. So a new one would have to be created with the powers of Heaven or Hell.

why not give him his old one back and since they are supernatural just keep his soul from leaving it's body?

They can't give him his old body because it was sunk. They're Angels and Demons not miracle workers. And, since his Life Watch was the thing keeping him alive in the first place when it stopped it was all over. There was no return. And even if they kept his soul in his body, what would he come back to? Drowning again and again. What's the point?

I dunno like I said him getting a new body doesn't make much sense

Yeah it does. If his old body was drowned it would have decayed by the time of ADGTH2. Yeah, let's return him to a drowned up corpse, smart plan.

well then they should repair it

Again I state: Angels and Demons, not miracle workers. The powers of Heaven and Hell are limited. They can't just 'repair it' because it's long gone. You can't repair what's gone.

I guess but still just return him anyway

Not only was his old body drowned, but burned as well.
The ship caught fire, blew up, and sank with Charlie's body in it.

Also, his old body was just that, old...
If he wanted to make a new start, get a new vesal. Besides, his old body had to have been broken down due to all the drinking Im sure he did.

Could the damage to his original body be repaired?

Doubt it.
If one were to drown then blow up...there would'nt be much left...