WHAT IS DIMINISHED VALUE?
Auto accidents can wreck a vehicles value. Diminished value (DV) is the loss in market value that occurs when a vehicle is wrecked and repaired. A reasonably intelligent consumer will not pay the same price for a wrecked, then repaired vehicle, as they would for a vehicle with no prior accident history. Even if the repairs were done well, the vehicle still loses value.
Let’s assume you were shopping got a late model used vehicle. You come upon a dealer who has 2 identical vehicles that match what you are looking for. These vehicles are the same year, make, and model. They have the same mileage and options. They appear to be in the same general condition. The sticker price for both vehicles is $20,000. You ask the dealer if either vehicles has ever been wrecked and he tells you that one of the vehicles had sustained $6,500 in collision damage, but the repairs were expertly completed and you cannot tell if there was ever any damage. Now there are just 2 questions that remain.
1. Would you still give equal consideration to each vehicle?
2. (If you answered no to #1) How much of a discount in the price would have to be offered in order for you to give the wrecked and repaired vehicle equal consideration? The bottom line is: If you were not at fault in the accident, the at-fault party (or their insurance company) owes you money. This is true in all 50 states. There is over 75 years of case law to back that up.
How much value has your vehicle lost?
Don’t let the insurance company tell you. Ask the experts at AADvantage Appraisers. We will give you a professional appraisal and provide you with the documentation you will need to get the compensation you’re entitled to.
