Diminished Value – What is it?
What is Diminished Value?
Diminished value is the part of the damaged vehicle’s original value that could not be restored through repairs. It is the amount that the resale value of the repaired vehicle has been reduced because of its accident history. Buyers are not willing to pay the same amount for a vehicle that has an accident history when compared to one that doesn’t. Many states require full disclosure of accident history, so an owner of a vehicle involved in an accident will receive less money for the vehicle even if the accident was not their fault.
Three Types of Diminished Value
- Immediate Diminished Value: This addresses the difference in resale value of a vehicle immediately before the damage occurred and immediately after (prior to repair). Most courts use this as the primary measure of damage when courts are used to seek reimbursement for damage from a negligent party.
- Inherent Diminished Value: This standard assumes that optimal repair has been achieved and is defined as the amount by which resale value of a repaired vehicle has been reduced because of the accident history. This is the most widely accepted form of Diminished Value.
- Repair-Related Diminished Value: This standard includes any additional amounts by which the resale value of a vehicle may be reduced because of sub-par repairs.
Factors Affecting the Vehicle’s Diminished Value:
- Condition of the vehicle pre-accident
- Age of the vehicle
- Value of the vehicle undamaged
- Prior accidents
- Demand of the marketplace
- The vehicle’s mileage
Arizona and Diminished Value
Arizona recognizes Diminished Value as a compensable claim. If you have been in an accident that is not your fault, then you have the ability to collect from the at-fault party. However, the insurance companies often refuse to pay or offer a low settlement amount for Diminished Value claims.
How Beauchamp Law Can Help You
All law firms are not created equal. While other law offices will have a paralegal evaluate your case, Beauchamp Law will always have an attorney evaluate your personal injury claim.
We have a Registered Nurse on staff, who is also a licensed attorney, that brings compassion and warmth to our legal services. We understand that this is a stressful time in your life, so we will try to alleviate some of that stress by keeping you apprised of what is happening with your case so you can make informed, educated decisions when necessary.
We serve clients in Phoenix, Chandler, Gilbert, Glendale, Mesa, Scottsdale and other cities throughout the State of Arizona.
Call us today to schedule your complimentary consultation: (480) 704-0777