One Hyundai dealer said the quiet part out loud: given the loss involved, they’d likely advise the owner to just keep the car rather than trade it in. A Hyundai Sonata Sport with 10,750 miles was involved in a front end collision in Chicago, Illinois that caused $12,153.44 in damage, severe enough to disable and tow the vehicle and leave it with structural damage, though the air bags did not deploy. After the owner filed a third-party inherent auto diminished value claim, The St. Lucie Appraisal Company was retained to determine exactly how much that structural repair history cost the owner.
The result: an average diminished value deduction of 34.58%, or $6,051.50 off the vehicle’s pre-loss Fair Market Value of approximately $17,500.00.
How the Diminished Value Was Determined
To reach that figure, St. Lucie Appraisal contacted six Hyundai dealerships across Illinois and asked their sales professionals to weigh in on the vehicle’s specific repair history. Dealers providing opinions regarding diminished value were given the same case file: year, make, model, mileage, color, factory options, date of loss, the nature of the repaired damage, and how the repairs were carried out. Dealers were told the vehicle had been properly repaired and were asked to base their opinions on personal knowledge of the Hyundai market and access to auction results.
The estimates painted a fairly bleak picture for a structurally-damaged trade-in. One sales representative said a dealership would grudgingly accept a structurally-damaged car in trade, but it would bring more than 30% less in trade-in value than an equivalent clean-history vehicle. That representative added that, given how steep the loss would be, dealers might actually advise the owner to hold onto the car rather than trade it in — and if they did buy it, a Hyundai with frame damage would go straight to auction, purchased from the owner for as little as half its value. Averaged across all six dealerships, the deduction came out to 34.58%.
The opinions of these unbiased experts form the basis for the most comprehensive Auto Diminished Value Appraisal available, and having six of them puts the diminished value figure prepared by The St. Lucie Appraisal Company solidly in the ballpark of what the car owner will actually experience in the real world.
No LKQ (used) or aftermarket parts were used in the repair, so none were factored into the diminished value calculation — a detail that matters, since aftermarket parts can sometimes deepen a diminished value deduction beyond what collision history alone would cause.
Why Repaired Vehicles Lose Value
This case illustrates a pattern St. Lucie Appraisal sees consistently, especially when structural damage is involved: once a vehicle has been in a collision and repaired, buyers generally pay less for it than they would for an identical vehicle with a clean history — regardless of how well the repair was performed. Presenting a diminished value claim and following it through to a satisfactory conclusion is a daunting task for the average person, which is why a comprehensive, independently prepared Diminished Value Report is central to a successful claim.
As part of this appraisal, The St. Lucie Appraisal Company contacted Hyundai dealerships serving Illinois and neighboring markets to determine how this specific repaired vehicle would be valued in the wholesale marketplace, comparing its condition before and after the collision.
Description of damage: Disabling collision damage to the front, including damage to structural components and no air bag deployment. Repair cost: $12,153.44.
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Questions & Answers About Automobile Diminished Value
What is diminished value?
Diminished value is the difference between what a vehicle was worth before an accident and what it’s worth after being repaired. Even a flawless repair typically doesn’t restore a vehicle to its pre-accident market value, because the collision now shows up in its history.
Would a dealer really advise an owner to keep a repaired car instead of trading it in?
According to a dealer in this case, yes. When the trade-in loss is steep enough, some dealerships will be upfront that the owner is better off keeping the vehicle rather than accepting a low trade-in offer driven by the repair history.
Does the mid-range price of a vehicle like this affect the diminished value percentage?
Not necessarily. This Sonata had a Fair Market Value of about $17,500, well below the luxury and exotic vehicles common in this series, yet still lost 34.58% of its value, showing that structural damage carries a real percentage penalty across price points.
How is diminished value calculated in an appraisal like this one?
St. Lucie Appraisal doesn’t use formulas or online valuation shortcuts. Instead, appraisers gather independent opinions from multiple dealerships familiar with the vehicle’s make and local market, then average those figures to arrive at a supportable number.
What does a Diminished Value Report cost, and how do I order one?
An Automobile Diminished Value Report is $275.00. You can pay by credit card or PayPal using the payment button below, or by calling 772-359-4300. Before making your payment, email the body shop estimate or insurance company appraisal to contact@stlucieappraisal.net
I drive a Tesla or another exotic vehicle — does this process still apply?
The general approach is similar, but rates differ. Tesla and other exotic car owners should call for specific rates.
Is this only for Chicago vehicles?
This case was based in Chicago, Illinois, and St. Lucie Appraisal serves Arlington Heights, Aurora, Bloomington, Bolingbrook, Champaign, Chicago, Cicero, Decatur, Des Plaines, Elgin, Evanston, Joliet, Naperville, Palatine, Peoria, Rockford, Schaumburg, Skokie, Springfield, Waukegan, and the rest of Illinois.
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.
Before making your secure payment please email the body shop estimate or insurance company appraisal to contact@stlucieappraisal.net
TESLA AND OTHER EXOTIC CAR OWNERS PLEASE CALL FOR RATES.
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