It is simply the amount of value lost due to a vehicle being in a collision. Now, this could be from the car or truck having a damaged history, or it could be that the vehicle has not been repaired to like new condition. Let me ask you, would you pay the same amount for a vehicle that has had $12,000 in repairs as you would a vehicle with no previous damage? If you would, I know a few shady characters who would love to talk to you. But seriously, Diminished Value can be anywhere from about 5% to as much as 50% of the car’s normal undamaged value. The newer the car, the greater the repair, the higher the percentage.
Diminished Value can be anywhere from about 5% to as much as 50% of the car’s normal undamaged value
What is Diminished Value? Diminished Value is the immediate decrease in an automobile’s market value happening after a vehicle is damaged and repaired. A sensible person will not likely pay the same amount for a vehicle that has sustained $3000 in damage as for a like vehicle with no previous damage. Even when the repairs are as perfect as humanly possible, body shops cannot duplicate laser welds or factory rustproofing, repair loss of structural integrity or loss of warranty for related parts, guarantee that safety systems will respond as designed or even prevent other problems from developing that may be caused by the kinetic energy that has passed through the vehicle from inertia.
would you pay the same amount for a vehicle that has had $12,000 in repairs as you would a vehicle with no previous damage? If you would, I know a few shady characters who would love to talk to you.
To collect diminished value following a auto accident, insurance providers typically request a diminished value report. These reports are often produced by an impartial 3rd party appraiser appraises the automobile and establishes the loss in value. When we preform a Diminished Value appraisal, we audit the final bill from the auto body repair shop, collect data and evidence to support our findings, provide 3rd party documentation to support our conclusions and organize and color code the appraisal to allow you to easily point out specific data when you’re negotiating with the insurance company.
organize and color code the appraisal to allow you to easily point out specific data when you’re negotiating
Still Confused? Here’s the Professor to explain the question, “What is Diminished Value?”.
httpv://www.youtube.com/watch?v=bO1w04u9XbE
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