Diminished Value Appraisal Services We Offer
We provide two different types of diminished value appraisals:
$220 – The Standard Appraisal is USPAP compliant and involves us going out and meeting with multiple used car managers in the area near the subject vehicle and averaging their assessments. This process takes between one and two weeks as we have to gather information from multiple used car managers in the area of the vehicle. This appraisal is for “inherent diminished value” only.
$310 – The Inspection Appraisal requires us to inspect the vehicle. This appraisal is best for expensive vehicles or if litigation is anticipated. This involves us meeting with the owner and doing a detailed inspection of the vehicle repairs. If there is any “repair related” diminished value, an inspection is necessary to determine it.
Local Market Approach vs The 17C Formula:
Many insurance companies use the same method to calculate the Diminished Value of your vehicle. The 17c formula was developed by State Farm when the Georgia Supreme Court, in the matter of “State Farm Mutual Automobile Insurance Company v. Mabry et al., 274 Ga. 498 (2001)”, asked them to create a method on which Diminished Value could be measured. Please note that this method for measuring Diminished Value applies to that case only, but has become the generally accepted method among insurance companies.
The formula allows for the adjuster to make some adjustment for the specific circumstances, but it has several flaws. The formula does not adjust for geographical location. Another concern is that the Base Loss of Value upon which the calculations begin is set at 10% of the vehicle’s retail value. This assumes that 10% of retail should be the starting basis for all vehicles; but different makes of vehicles lose value differently. A Toyota with the same repair costs as an Audi is going to have a lower amount of Diminished Value. Also, the mileage adjustments are questionable because the formula actually adjusts for mileage more than once, and assumes that there is no diminished value to a vehicle that has over 100,000 miles.
In order to get a more accurate understanding of the loss in value, the results of our diminished value appraisals are derived by years of consulting with used car managers in the area near your vehicle and averaging their professional assessments. This provides a more comprehensive understanding of the true value that has been lost as a result of the damage done to your vehicle and is widely accepted by local courts.
Please feel free to contact us today at (844) DIMVALU or (888) 996-1970. We’d be glad to provide an initial consultation of your case at no cost.