What is Diminished Value?
Diminished Value August 17, 2019
Diminish Value or What is diminished value and how do I know when I am entitled to it? Call Benchmark Auto Appraisers LLC for a FREE consultation and quote 1-877-888-6113 or local at 716-523-6999.
Diminished Value or Diminution of value happens when a vehicle is damaged in an accident. The vehicle is then repaired or restored back to roadworthy condition. The insurance company agrees to pay the auto claim for the repairs. You have your vehicle back, but it’s just not the same and does not have the same value before the accident.
To help you understand your vehicles diminish value, take a trip to the local car dealership. You’ve decided you may want to buy a pre-owned vehicle.
You know what make and model you’re looking for and you find two of them sitting on the dealer’s lot. You start to compare options, mileage, and features and find they are practically identical. As the salesperson explains the features available on each vehicle, you learn that one of the two cars was involved in an accident requiring repairs. You are told that you can be assured that it is now as good as new. But can you? Would you be willing to pay the same amount for a car that has been repaired or pay the fair price for the vehicle that does NOT have a history of damage?
Diminished Value Appraisal
Benchmark Auto Appraisers LLC Diminish Value Claim Appraisal Expertise: The people’s choice for auto Appraisals. We provide everything you need to supply to the Insurance Company for your Diminish Value Claim approximately a (15-30 page report).
- Extensive database to assist in valuation and comparable research
- Over 292,000 values added each month
- A locally owned-run organization that provides personalized customer service and certified appraisals.
- Benchmark Auto Appraisers with over 42 year’s automotive experience can mediate with other party’s car appraiser
- Our appraisals are accepted and respected by major insurance companies.
In a recent study, 46% of the people surveyed would not buy an auto that was in an accident, and 38% said they would buy a car that has been in an accident, but only if it could save a huge discount.
So what does that say about your vehicle’s diminished value? Is it worth much less now that is been in an accident and repaired? Your vehicle is now BRANDED by CarFax and Auto Check vehicle history report. Insurance companies have been hiding from their diminished value claimants for many years. Has your vehicle diminished in value because of the repairs required by an accident of course it has? It’s common sense
Benchmark Auto Appraisers LLC is your diminished value appraisal professional. We make it our business to know. Our diminished value vehicle appraisers have the experience and credentials in diminish value appraisals nationwide we gather information on automobiles sold that have sustained accident damage. Our vehicle appraisers then compare the sale price of these damaged and repaired vehicles to the sale price of those that have not been in an accident.
During a recent dealer survey, our independent car appraisers found that dealers diminished a vehicle’s value by 15% to 50% because it had been involved in an accident requiring repairs.
Even though repairs have been made properly, there is a loss of value due to inherent diminished value. Should repairs be done poorly, and not up to industry standards, there may be additional repair-related diminished value to the automobile.
Factors that cause Diminished Value
What are some of the factors that cause diminished value? Some, but not all of these factors are:
- The overall amount of damage to the auto versus its original value.
- Year, make or model of the vehicle.
- Any frame or unibody damage.
- Use of non-OEM parts. Parts that are not the original parts placed on the car by the manufacturer.
What does this mean for you? Diminish value is the difference between what your auto was worth before the accident and now after the repair.
Tort law states: Compensation for damages to personal property can include the reasonable cost of repair or restoration. Plus an allowance for any difference between the original value and the diminished value after repairs.
Tax Deductible Diminish Value
A Benchmark Auto Appraisers certified diminish value claim appraisal can also help you in determining the amount of loss you can claim as an itemized tax deduction on Form 4684 on your Fed. tax return. The part of the loss not reimbursed by the insurance company is tax-deductible. In many cases, the cost of the car appraisal can also be claimed as an itemized deduction. Let assist you in securing the proper documentation you need to determine your vehicle’s diminished value so that you can be sure to create a diminished value claim that includes everything you are entitled to.
Call us today for a FREE consultation with a certified appraiser at 877-888-6113 or locally at 716-523-6999.
Daniel “Dan” Jendrowski
Certified Public Auto Appraiser Diminish Value Experts B.C.A.A. & I.A.C.P.
For FREE Consultation and Review