Each week we report on the most interesting and informative articles concerning auto diminished value claims. Regarding our diminished value appraisal of a Dodge Challenger SRT 392 Coupe with 3,100 miles that was involved in a rear-end collision that caused $4,417.02 in damage. The vehicle was not disabled/towed and had structural damage.The claimant hired an auto appraiser near Newark 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 Dodge dealers in New Jersey. You will take a hit of 25% minimum at most any dealer due to the frame being compromised. Some dealers won’t even take it as trade or send it right to auction. Also that most finance companies won’t finance a frame damaged vehicle they may offer 20-40% less than the book because they will have to sell it for 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 Dodge dealers in New Jersey in order 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 damage to structural components and no air bag deployment. Repair cost $4,417.02. 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 33.33%. 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 $40,000.00 at the time of loss. The Diminished Value was $13,332.00.
QUESTIONS & ANSWERS ABOUT AUTOMOBILE DIMINISHED VALUE
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