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What is Diminished Value?
Diminished Value (DV) is the loss in market value that occurs when a vehicle is wrecked and repaired. The vehicle now has an available record through sources such as http://www.carfax.com/ or http://www.autocheck.com which will cause a decrease in resale value. At the time of the completed repair this vehicle would have been nearly new,....but with a record that it has suffered substantial damage. If the registered owner were to try to sell this vehicle the owner will have to reduce the asking price significantly in order to make this vehicle as attractive to prospective buyers of a similar vehicle with out this history.
Understanding by Example.
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 $35,000. You ask the dealer if either vehicle has ever been wrecked and he tells you that one of the vehicles had sustained $16,000 in collision damage, but the repairs were expertly completed and you cannot tell 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?
How much value has your vehicle lost?
Don't let the insurance company tell you. Ask The Experts! We are professional vehicle appraisers who will appraise your vehicle to the pre-accident value and then use a formula from the body shop receipt to determine what you have coming. We provide your attorney with the appraisal listing the Diminished Value of your vehicle. In the above example the Diminished Value was $9,292 that was owed by the insurance company to the vehicle owner.
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 Oregon, Washington and most states.
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