What is Diminished Value?


Diminished value is a term that is mostly used while referring to vehicles. It describes the loss of economic value of a car after experiencing damages. It can also be used to refer to the loss of the value of other properties like artwork and jewelry. Read more on our  Hansen Price
 
When you are involved in an accident, your vehicle suffers from some degree of diminished value. Depending on the amount of damage, the diminished value of your automobile even can go up to 50% of its retail value. When selling a vehicle, the buyer will want to know whether it has had a prior collision or any damage. There is a stigma associated with cars that have been in an accident before, a situation that makes the worth of a vehicle reduce significantly.
When determining the diminished value of a vehicle, there are many factors to put into consideration. The first is the degree of damage to the automobile. As the severity increase, the diminished value also increases. Whether the car was repaired or not and how it was repaired matters a lot. The buyer of the automobile will consider the new parts installed, the outcome of the repair and the general status of the car. The diminished value of a vehicle can be placed in two different categories depending on how the damage occurs. It can either be repair-related or inherent diminished value. Please  click here to get started

The repair-related loss of value occurs due to lack of proper repairs of the vehicle after the damage. This can be evident from the car paint, the trim and frame repairs and the alignment issues. Poor quality repairs can even result in higher diminished value compared to the immediate diminished value.
Inherent diminished value is the reduction of the value of the vehicle just from the fact that it has been in an accident. The value of an automobile with a damage history will not sell at an amount similar to the vehicle that has no record of a wreck. It is the most known and accepted form of diminished value which can be calculated from the value of the car prior or after repair.
An insurance company can help you in recovering the loss as a result of diminished value. They assist you to go back to the financial position you were before the accident happened.
When hiring the diminished value appraisal services, it is vital to look for reputable professionals who will offer you quality services and help you to collect what you deserve. Continue reading on this at  https://en.wikipedia.org/wiki/Diminished_value