The two types of car diminished value are inherent diminished value and repair-related diminished value.
DVCHECK can help you with inherent diminished value by providing you with a professionally prepared report that will help you document, demand, negotiate, and recover your car’s diminished value after a car accident.
(Repair-related diminished value is the decrease in value a vehicle suffers after an accident if the repairs made as a result of the accident are of poor quality. If you have repair-related diminished value, see our frequently asked questions for additional information.)
Inherent diminished value refers to the loss you incur if your car is involved in an accident and public knowledge of your vehicle’s accident history causes potential buyers of your car to offer you less for your vehicle than what they would offer you if it did not have an accident history.
Your car’s diminished value becomes public knowledge either through disclosures when your car is sold or when your vehicle’s accident history is published in a CARFAX report.
Public knowledge of your vehicle’s accident history can have a devastating effect on your car’s value – even if the repairs made to your vehicle are perfect.
Why?
Potential buyers will have a long list of concerns about your car after the accident.
- Will it operate at the performance and safety level as it did before the accident.
- If it was in another accident in the future, were the repairs made good enough to give everyone in the car their best chance of survival?
- Does it have other hidden problems or damage that could be expensive to fix in the future?
- Will it be difficult to resell to someone else in the future because of its accident history?
Diminished value will destroy the demand for your vehicle.
- Your car’s accident history makes it less desirable to both dealers and private parties.
- When given a choice, a reasonable person will always pay less for a vehicle with an accident history when compared to a similar model with no prior accidents.
- Anyone who is interested in buying your car after an accident is going to want a discount to assume the risk of future problems, expenses, and safety concerns.
- A large number of buyers who see your car’s accident history in a CARFAX report will avoid your vehicle altogether. Those who are still interested are going to expect a discount.
- You’ll have difficulty trading or selling this vehicle in the future because most car buyers will prefer a vehicle that has not been damaged in an accident.
- A car dealer will check the CARFAX and find your accident history. Even if your accident hasn’t been reported, they are trained to detect things such as the difference in the thickness of factory installed paint when compared to aftermarket paint applied after a car accident.
All of the above will cause a potential buyer or a dealer to offer you thousands of dollars less because of the automobile diminished value resulting from your car accident.
Your diminished value loss could be massive.
That’s because a buyer doesn’t have to pay what you’re asking. They can simply walk away and find a vehicle just like yours without an accident history.
Because you’re facing a substantial loss, you need to act quickly to ensure that you recover your lost value, regardless of whether you intend to sell the car or not.