Each week we report on the most interesting and informative articles concerning auto diminished value claims. Regarding our diminished value appraisal of a Mazda MX-5 Miata Sport Automatic Convertible with 1,747 miles that was involved in a Front End Collision that caused $1,640.77 in damage. The vehicle was not disabled/towed and had no structural damage and no air bag deployment.The claimant hired an auto appraiser near Richmond 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 Mazda dealerships in Virginia – A minor accident or something showing $1600 worth of damage may or may not take a 10% hit on trade. Also, that you may lose 10% at least off the book value due to the fact that the car is so new and also being that the accident is minor in nature and normally the loss would be based on what is on the report and if you had it repaired at reputable shop maybe 10% less.
The opinions of unbiased experts form the basis for the most comprehensive Auto Diminished Value Appraisal available. We obtain six of them which absolutely puts the diminished value figure prepared by The St. Lucie Appraisal Company in the ballpark. This is what the car owner will experience in the real world.
Dealers providing opinions regarding diminished value were given information specific to this vehicle including year, make, model, mileage, 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 Mazda dealers in Virginia in order to establish how these damages 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 Front with no damage to structural components and no air bag deployment. Repair cost $1,640.77. 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 10.42%. 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 $2,605.00.
QUESTIONS & ANSWERS ABOUT AUTOMOBILE DIMINISHED VALUE
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