This article details the diminished value appraisal of a Tesla Model 3 Long Range Sedan with 20,045 miles that was involved in a Left Side collision in Knoxville, TN that caused $15,619.68 in damage. The vehicle was disabled/towed, had 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 DON’T USE FORMULAS, ALGORITHMS, AD COMPARISONS OR OTHER SHORT CUTS
SIX UNBIASED DEALER QUOTES IN EVERY APPRAISAL TO VALIDATE OUR RESEARCH
TELEPHONE CONSULTATIONS ALWAYS FREE-OF-CHARGE
What Tennessee Car Dealers Say About Structural Damage and Resale Value
We learned from these examples from sales managers at exotic new car dealerships in Tennessee — One dealer said it would not be something they would take, could be 30–50% less in value depending on how it looks after repairs. They would not be a buyer but could be a third party facilitator. Another dealer explained it’s not a situation that is not gonna work in your favor — that’s a piece they wouldn’t keep, look at losing about half the value because now the structural integrity has been compromised so they wouldn’t be able to certify the car.
The opinions of six unbiased professional sales managers at recognized exotic 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 AUTODIMINISHEDVALUE.COM. This is what the car owner will experience in the real world.
Appraisal Methodology: Six Unbiased Dealer Quotes
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 exotic new car dealers in Tennessee 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.
Tesla Model 3 Diminished Value Case Details
| Item | Detail |
|---|---|
| Vehicle | Tesla Model 3 Long Range Sedan |
| Mileage | 20,045 |
| Collision Type | Left Side — Disabling/Towed |
| Structural Damage | Yes |
| Air Bag Deployment | No |
| Repair Cost | $15,619.58 |
| LKQ / Aftermarket Parts Used | No — not factored into diminished value |
| Fair Market Value at Time of Loss | $47,500.00 (Average Trade-In Value) |
| Average Dealer Deduction (6 Quotes) | 39.17% |
| Diminished Value | $18,605.75 |
| Claim Type | Third-Party Inherent Diminished Value |
Description of damage: Disabling collision damages to the Left Side with damage to structural components and no air bag deployment. Repair cost $15,619.58. LKQ (used) and/or aftermarket parts were not utilized in the repair/not factored in to the diminished value.
The average of six (6) deductions was 39.17%. 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 $47,500.00 at the time of loss. The Diminished Value was $18,605.75.
Frequently Asked Questions: Tesla Model 3 Diminished Value in Tennessee
What is auto diminished value after a collision?
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. This loss in market value is called inherent diminished value.
How is diminished value calculated without using a formula?
Rather than relying on formulas, algorithms, or ad comparisons, The St. Lucie Appraisal Company obtains six unbiased dealer quotes from recognized exotic new car dealerships. Sales managers are provided with the vehicle’s year, make, model, mileage, pre-accident condition, color, options, date of loss, nature of repaired damages, and repair method. Their opinions — based on personal knowledge and access to auction results — form the basis of the appraisal.
What was the diminished value of the Tesla Model 3 in this case?
The fair market value of the Tesla Model 3 Long Range Sedan at the time of loss was established at approximately $47,500.00. The average deduction across six dealer opinions was 39.17%, resulting in a diminished value of $18,605.75.
Does structural damage significantly affect a vehicle’s resale value?
Yes. Dealers contacted for this appraisal indicated losses of 30 to 50 percent depending on how the vehicle looks after repairs, with structural damage being a critical factor. One dealer stated the vehicle could lose about half its value because the structural integrity has been compromised, making it impossible to certify the car.
How do I make a diminished value claim in Tennessee?
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 from a qualified independent appraiser is key. The St. Lucie Appraisal Company provides diminished value appraisals throughout Tennessee and all 50 states. Call 772-359-4300 for a free telephone consultation.
Tennessee Diminished Value Appraisal Service Area
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