Diminished Value

A diminished value appraisal evaluates the difference in the value of a motor vehicle after a collision repair. Reports are usually compiled by an Auto Appraisal Expert experienced in the DV field and who may provide expert testimony for Appraisals, Arbitration, Mediation or Litigation in a court of law. This Assessment report is used when filing or disputing a diminished value claim against another party and/or an insurance company. The report measures a damaged vehicle’s inherent loss in value. The diminished value can be measured as the difference in the value of the vehicle before the loss to that after the loss, prior to or after repair. In most cases, even if the repair was done correctly, the automobile’s value will still be considerably less after a loss. When consumers find that a vehicle has been in an accident, most consumers will never pay the same price for a repaired vehicle as compared to one with no loss history.

Some reports include an assessment of the damage done to a motor vehicle, the quality of the performed repair, the market value of the vehicle before and after the accident. There are no set rules for measuring diminished value, and since every vehicle loses value differently, a one size fits all formula would be fundamentally inaccurate.