Frederick Auto Appraisal

Damage Claim - Collector Car Appraisals - PrePurchase Inspections -Diminished Value Reports

Diminished Value Reports

Diminished Value is defined as that portion of a damaged vehicle's pre-Loss Value that has Not been restored through the repair process. There are actually three (3) basic types of Diminished Value

Immediate Diminished Value is the difference in resale value of a vehicle immediately before damage has occurred and immediately after damage has occurred (prior to repair). Most jurisdictions (courts) will use this standard as the primary measure of damage when courts are employed to seek reimbursement for damage from a negligent party. As courts are rarely the chosen venue for recovery of property damage, the standard of “Immediate Diminished Value” is rarely employed in resolving Property Damage claims . . .
Inherent Diminished Value assumes optimal repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced simply because the subject vehicle now has a significant damage history. “Inherent Diminished Value” is the most widely recognized and accepted form of Diminished Value. It is also the basis upon which any supplemental form of Diminished Value would be added. A common “Supplemental” form of Diminished Value is “Repair Related Diminished Value” . . .
Repair Related Diminished Value includes any additional amounts by which the resale value of a subject vehicle may be further reduced because of less-than-optimal repairs. This could include anything from minor cosmetic imperfections to major structural defects.

Has My Vehicle Suffered a Diminished Value?

The only blanket answer here would have to be Yes - No - Maybe! The newer your vehicle in better pre-loss condition, with no previous collision history and the more severe the current collision damage . . . the more resounding the "YES"! The older the vehicle in poorer pre-loss condition, with a previous accident history and minor current damage . . . the more deafening the "NO"! As your circumstances moderate between these two extremes the more your true answer will fluctuate accordingly.

The question becomes how much is the loss? Determining the value of the loss is based purely upon supply and demand economics. Does the damaged vehicle have to be 10% less, 20% or more for the consumer demand to be equal? Unfortunately, every car is different and thus calculating the loss is not something that one can open a book or look up on some website. Rather an expert that has full understanding of the marketplace for damaged and repaired vs. undamaged vehicles is often required to help determine the diminished value. A general rule of thumb for vehicles that are 2001 model or newer with no prior damage and with at least several thousand dollars worth of repairs is that the vehicle loses in the range of 10-25% of its pre-loss value.

What does this mean for you? The diminution of value is the difference between what your car was worth before the accident and after the repair. Let Frederick Auto Appraisal help you determine your car's diminished value. Our fee for this service starts at $250. Mileage of 75 cents per mile may apply.