If your vehicle in Arizona has been in an accident, it likely suffered diminished value. We work exclusively for vehicle owners, not insurance companies. Arizona insurers often use lowball formulas, ignoring real-world market trends. Our independent appraisals provide accurate, documented valuations to support disputes and claims.
Arizona Diminished Value Claims Explained
The St. Lucie Appraisal Company prepares our automobile diminished value reports based on our appraisal supported by six new car dealers’ opinions of how much value your car has lost because it was repaired after a collision. It has always been known that used-car buyers in Arizona favor purchasing previously undamaged cars to repaired ones – even if repairs were perfectly done. But until CARFAX came along it was virtually impossible to know one from the other. Now that repaired vehicles can be easily identified by having the dealer order a CARFAX report, these cars and the stigma of their being previously repaired eroded their trade-in values, sometimes considerably. This type of loss is known as “inherent diminished value.” Inherent diminished value, as many people know, simply means that, as a result of previous repairs to a motor vehicle and the resultant bad CARFAX report, the vehicle is worth less than a similar vehicle that was never involved in a collision. The first step toward recovering that lost value is hiring a licensed independent appraiser specializing in automobile diminished value reports.
We represent vehicle owners—not insurance companies
Insurance consumers in Arizona may seek compensation for their vehicle’s loss in fair market value from the adverse insurance company. Insurance companies are expected to indemnify automobile owners for the value of their vehicles prior to the loss. The amount of diminished value varies according to many factors. The year, make, model, mileage, type and severity of repaired damage and even a car’s color can factor in to the equation. Consumers of high-end cars such as Bentley, Mercedes-Benz and Porsche tend to be more discriminating and usually won’t buy a vehicle that was repaired, regardless of how minor the damage was. Diminished Value can result in as much as 50% of the vehicle’s value lost.
Hire an Arizona Diminished Value Expert
One reliable indicator can be considered relevant regarding Arizona diminished value – how much less the dealer will offer for your trade-in as a result of a bad CARFAX report. If a consumer or attorney in Arizona needs to hire a diminished value appraiser, the appraisal should preferably be done on the basis of actual dealer opinions rather than the use of formulas or auction results.
Do you need us to physically inspect the car? For INHERENT DIMINISHED VALUE claims, a physical inspection of the repaired car is unnecessary and only serves to line the appraiser’s pocket as you will be charged more for this service. The car is fixed. Repairs were satisfactorily done. There’s nothing to see. Let’s move on to why your car is worth less – because it now has a repair history. In the case of REPAIR-RELATED diminished value claims, which is a loss of value because of shoddy repairs we will send an appraiser because a physical inspection is, indeed, necessary. Your claim, as well as 99% of diminished value claims, represents INHERENT DIMINISHED VALUE which is the loss of value because the vehicle now has a repair history or bad Carfax.
Our Independent Appraisal Methodology
The automobile diminished value report you receive from AUTO DIMINISHED VALUE is based entirely on our estimation and the opinions of six used car managers at automobile dealerships in Arizona. By making a claim against the insurance company of the responsible driver, consumers should be able to recoup every dollar lost in value by submitting an Automobile Diminished Value Appraisal to the insurance adjuster.
A Diminished Value Claim in Tucson, Arizona
A diminished value appraisal of a Lexus IS 200t with 14,891 miles that was involved in a Rear-end collision that caused $4,924.38 in damage. The vehicle was not disabled/towed, had no structural damage and no air bag deployment. The claimant hired an independent auto appraiser and made a third-party inherent auto diminished value claim for the vehicle’s loss in value. Once a car is repaired after a collision, it is worth less, often much less depending on the severity of the damage. Regardless of how well the repairer did his job, nobody will pay as much for a previously wrecked car as they would for an identical one that was never in an accident. Presenting a diminished value claim and following it through to a satisfactory conclusion is a daunting task for the average person. Obtaining a comprehensive Diminished Value Report is key.
We learned from these examples from sales managers at Lexus dealerships in Arizona and surrounding states – One dealer said as long as there is no frame damage and no air bag deployment then it would be minor accident and if the Carfax shows minor accident maybe a 10-15% loss at most. Another dealer relayed that they would take it on a trade-in, $5,000 worth of damage is pretty minor being the sticker price exceeds 20 k if it was fixed well and you don’t mind losing a few thousand dollars, then they would take it off your hands.
The opinions of six unbiased professional sales managers at recognized new car dealerships form the basis for the most comprehensive Auto Diminished Value Appraisal available. We obtain six of them to validate the diminished value report prepared by The St. Lucie Appraisal Company. This is what the car owner will experience in the real world.
The six dealers providing opinions regarding diminished value were given information specific to this vehicle including year, make, model, mileage, pre-accident condition, color, options, any other pertinent equipment, date of loss as well as the nature of the repaired damages and the manner in which the vehicle was repaired. Dealer opinions are based on personal knowledge and access to auction results. Dealers were advised that this vehicle was properly repaired.
We contacted several Lexus dealers in Arizona
to establish how these repairs and the resultant repair history would impact this vehicle’s Fair Market Value (FMV). Dealers were provided with an evaluation of the vehicle’s condition both prior and subsequent to repairs.
Description of damage: Non-disabling collision damages to the Rear with no damage to structural components and no air bag deployment. Repair cost $4,924.38. LKQ (used) and/or aftermarket parts not were utilized in the repair/not factored in to the diminished value.
The average of six (6) deductions was 14.08%. This is the percentage of Diminished Value to be taken from the FMV at the time of loss.
We established that the above captioned vehicle had a Fair Market Value (Average Trade-In Value) of approximately $25,000.00 at the time of loss. The Diminished Value was $3,520.00
ANSWERS TO FREQUENTLY ASKED QUESTIONS ABOUT DIMINISHED VALUE LAW IN ARIZONA
Arizona
• Third-party claims allowed; first-party diminished value claims are generally not recognized.
• Courts have recognized independent appraisals based on dealer opinions as valid evidence.
• Insurers often undervalue claims using automated formulas, making third-party appraisals essential.
Click on the payment button above to pay by Credit Card or Paypal. The fee for an Automobile Diminished Value Report is
$275.00. You may also make your Credit Card Payment by telephone, call 772-359-4300.
Service in Phoenix, Tucson, Mesa, Chandler, Glendale, Gilbert, Scottsdale, Tempe, Peoria, Surprise, San Tan Valley, Yuma, Avondale, Goodyear, Casa Adobes, Flagstaff, Buckeye, Lake Havasu City, Catalina Foothills, Casa Grande, Maricopa, Sierra Vista and throughout Arizona
Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Maricopa, Mohave, Navajo, Pima, Pinal, Santa Cruz, Yavapai, Yuma Counties
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