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 for
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 vehicle has ever been wrecked and he
tells you that one of the vehicles had sustained $6500 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.
-
Would you still give equal
consideration to each vehicle?
-
(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.
DO
YOU QUALIFY?
