A diminished value vehicle appraisal is what it sounds like. The value of a vehicle after an accident can be significantly lower than it was before. Even if repairs can be made and the vehicle is once again in working order, just the fact that it was involved in an accident reduces the value. A diminished value vehicle appraisal is a fairly subjective judgment because there’s no way to determine exactly what the value would be on the used car market. However, it is clear that the value diminishes after an accident and various assessment tools are used to estimate what the loss of value may be.
The evaluation of the value of a vehicle after damage and repair is called a diminished value vehicle appraisal. Car appraisal experts will consider the value of the car before and after the accident, comparing to similar models on the market. Typically the loss in value is used for specific purposes.
Who Needs a Diminished Value Vehicle Appraisal?
The most common reason to ask for a diminished value vehicle appraisal is if you are attempting to claim compensation for the loss of value. When a vehicle is considered a total loss, it doesn’t matter what the difference in value was because you’ll get compensated based on the previous value of the car. But if the car is repaired, you want to get more than just the cost of repairs from the party that is responsible for payment.
Whether you’re dealing with an insurance company or an individual, you’re going to need to have an official diminished value vehicle appraisal if you want to claim damages that go beyond the actual costs of repair. If you’ve been in an accident and want to be sure you didn’t lose market value without fair compensation from the responsible party, talk to a certified vehicle appraiser.