What is diminished value?

What is diminished value?

Harder to sell a car that have been damaged

The diminished value is the following: There is a attached problem to the car in potential buyers point of view. No matter if the car looks the same after it was repaired properly and now runs smoothly it still got an attached stigma. So with other words, the diminished value is the amount value that the car lost after the car was involved in the car accident.

 

potential buyers hesitate to buy

On the resale market it is well known that potential buyers hesitate to buy a car that has been involved  in a car accident. No matter if the repairs was perfect. The car has still been damaged. Your car insurance cover can sometimes cover your diminished value, if  you got a comprehensive car insurance cover. Some car insurance companies offers protection against loss of the value of the car if it is involved in a car accident.

 

What is immediate diminished value?

There is a difference directly after the car accident and the damage occurred. The car had a resale value just before the car accident. This difference is the immediate diminished value. The immediate diminished value often serves as primary measure when courts investigates the problem.

 

What is inherent diminished value?

The inherent diminished value is the type of DV that is well accepted form by most people. The inherent diminished value means that the car should be repaired to maximum quality just as the car was before the car accident.

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