What is it and how does it work. Many People Search For A way to calculate or quantify diminished value, the problem is you can’t. Many so called dv experts online charge $10 to $100 in an attempt to make quick money from you but they are breaking the law or using was is called bad faith in the insurance industry that can lead to you being accused of fraud and getting your claim thrown out without a possibility to fix the issue that you were not aware of. There is an old saying whatever comes cheap ends up being much more expensive later. Please remember when someone says assessment or report it means it is not a legal appraisal.
There are multiple things to account for when anyone reputable is making an appraisal, one being it cannot be automated and it must be looked at by a professional, so anything instant is not going to give you an appraisal.
Every car devalues differently after an accident, example a Honda might loose a range of $3000-5000 while a Porsche might loose as much as $20,000 or more and a BMW $5000-10,000.
Many people say 10 years or 100,000 miles which is not the case, that is a basis to weed out that claim emails that will be annoying and in reality the only determining factor is price of the car, if retail value is worth less than $7500 it probably will not have diminished value and so it is not worth pursing but there are many cars that though over 10 years or 100,000 miles cost 10, 20 and even a few hundred thousand.
A real diminished value calculation takes many different things into consideration when creating an appraisal.
Type of car if it is luxury, exotic, classical, commercial and so on.
Market inventory, if it is a rare car or if there are to many on the market
The mileage and condition of the car
If it is a pickup truck, minivan, limo, 4 door, 2 door, convertible
Manual, automatic or tip-tronic
Other factors include type of damage
Replacement panels vs. Repaired panels
refinish, sealants, bonds and paint quality
if there is uni-body or frame damage
bolt on parts and matching, oem and the amount of body work vs parts
vehicle history and previous accidents, personal and commercial use, use in parades, market comparable vehicles and all options a car has in some cases the additional equipment can cost more than the entire car, some cars have as much as $40,000-200,000 additional equipment and in most occasions it is $5000 difference or more in price.
17c doesn’t allow cars over 100,000 miles and it accounts for retail pricing and not market comparable’s which can vary by as much as $5,000- 20,000 in some cases
When a normal Diminished value claim would be $4000 with 17c it would be $700 or less so taking those things into account understand that you get what you pay for and anyone reputable gives a free online estimate or in person inspection only.
For more information about Diminished Value
The one thing you must understand is an insurance company puts the burden of proof on you to get proof and a print out online, a trade in appraisal from a dealer or a guess is not enough.
When you are involved in a car accident, your car lost value instantly and you might not know it but the insurance company owes you for more than just repairs.
In all states involving a car accident when you are not at fault you can claim diminished value losses. In some states you can claim under uninsured motorist and even to the point that in Georgia, North Carolina, Washington and Kansas even if your not at fault you may claim diminished value against your own insurance company, so everyone qualifies for dv as long as your in a car accident.
The insurance company uses software, settlement data, restrictions and some plain common sense to try to settle most claims as low as possible but not accurately.
They use Deny, Delay, Defend tactics where they make you either wait a long time or get a denial and make you quit trying to get your money and lastly when they defend it can go in multiple ways which is they can send your claim to the legal department and make you talk to attorneys, they can deny you and try to force you into court or they can simply make you a low offer and continue offering it to you including sending you a check which can have verbiage on the check or attached documentation which releases them from liability if you accidentally cash it.
It is important to understand the way insurance companies think and operate before you open a claim. The first thing is most adjusters or claim reps are not allowed to pay you an amount higher than $1000-1500 without authorization and another thing is sometimes the adjuster has a supervisor or a manager telling them to not pay you or what to offer.
Lastly most software is calculated based not only on type of vehicle meaning MSRP, deprecation yearly and mileage but they use NADA which already pays you less and they use repair cost to have a basis in paying you less than repairs to your vehicle and not the actual loss, which in many cases the diminished value is more than the repair cost. We do appraisals that are accurate and we make sure the insurance company doesn’t have any excuses when dealing with us, the problem is that if you try to open a claim yourself first without proof it will make your claim very difficult to prove later on. If you wouldn’t operate on yourself, or wouldn’t fix your own body work?
Why would you try to fight a claim yourself without being an expert in diminished value?
Let us do the dirty work and heavy lifting, you have enough stress to worry about with your recent car accident.
Why you need to get a diminished value appraisal report? The burden of proof is on you, the insurance company will never do anything in your benefit they do things to keep money in the pockets of the insurance company and so you must prove your loss through legal documentation. There are multiple things to consider and the biggest being the definition of legal, many people are just plain cheap or don’t use common sense. They get automated instant reports from dv companies from $9.99 to $39.99 and then end up being laughed at unless it is very low and then the insurance company might use it to there advantage. Whenever ordering any appraisal make sure it is USPAP compliant which is the only standard approved by congress and the supreme court. Not all appraisers are equal, everyone has thought at one point or another hey the insurance company will pay more to write up bad appraisals in there favor but hey it is unethical and long term nobody can trust an insurance company and so we never get into the practice of working for big insurance. We rather work for attorneys, consumers and fleet services, including body shops. Our services are court approved and meet the standard of burden, so before you try to get a print off of KBB or NADA, or simply try to get a trade in value from the dealer next door or even think of getting an instant report for El Cheapo for $9.99 please take into consideration that you can also be accused of intentional fraud and get your claim thrown out permanently simply for using the wrong appraiser.
The biggest issue with getting an accurate car trade in value is location of where you live and location of where you sell the car not only in the city or state but just the size and type of dealer, time of year, accurate condition assessment, mileage, colors, options, after market parts if you have any, market inventory, trade in manager, prior accidents, paint and body work.
The biggest factor to take into consideration is that almost no dealer actually uses NADA, KBB or alike, unless you are doing a trade in with a vehicle purchase and then they are blowing smoke at you. Meaning they are lowering the price of the car being purchased and giving you a higher trade in 95% of all dealers in the United States use Black Book which is normally not even available to the public. Black book uses auction sales, trade in market data and dealer sales to compile the database they have. Most used cars have reconditioning cost, depending on how old the car is and condition which can be $150 for cleaning or if tires, alignment and minor issue together can cost $1000-2000 more. Most used cars have a profit for a dealer of $1000-3000 depending on the age and condition some cars can give a dealer a lot more or even a negative amount if the car has hidden issues they did not discover during the inspection process.
The biggest impact on a car trade in value is if it has ever been in a car accident, we do diminished value claims and know that a car can easily loose thousands but many things are to be considered in a car that has been in a car accident, like what type of accident was it. If it is frame damage or uni-body it will loose the most value vs. a fender bender and/or a bumper replacement.
Think about how different states have different taxes, fuel cost, supply and demand of vehicles. If you live close to a port or to a manufacture of cars, usually the amount will be lower than in areas farther from the city. Type of car sells different in areas where a person would buy a truck for instance in the mountain area vs. a smart car in say California and Nevada regions.
In most instances, when you add after market rims and options to the car that could not be upgraded per manufacture options it reduces the value of the car and does not increase it.
So when you go to sell your car, take it to 3 to 5 places and you will see there is a difference in how much your offered.