There was a thread a while back on Diminished Value after an accident and I thought I’d share my recent experience for posterity. Coming back from the coast last month, we were rear-ended at a red light by a tow truck that was hauling a dump truck. As daunting as that sounds, the damage wasn’t bad. Primarily, it crinkled the fiberglass strip along the back edge of the trunk, plus there was a small scratch on the lower valence.




My trusted body shop recommended repairing the fiberglass vs replacing it, since the new part would take time to arrive and still need to be painted and have the electronics moved over. They did get a replacement leaper in case the original got damaged when they removed it to paint the blended area. The repair took a week (with the weekend for extra drying time for the paint). Total cost: $2,350 (roughly $350 for parts and $2,000 in labor).

After the repair is when the Diminished Value process begins. My body shop gave me the name of a recommended appraiser who put together a fairly comprehensive 23-page package with a write-up, photo’s, comp’s, and credentials. He also gave me some pointers on what would happened next and the range of responses I might hear back from the other driver’s insurance company. One possibility was that they might want to get their own appraisal (which didn’t turn out to be the case), but he gave me a head’s up about one appraiser I should be sure to avoid, and how to insist on a different person, if necessary.
Cost of his appraisal: $275. His assessment for diminished value: $2,800.

I submitted the package to the adjuster and gave him a couple of days to review it and discuss it with his manager. When I followed-up, it happened that he was about to head out on vacation, but assured me someone would be covering. I asked that someone give me a response/update by Tuesday, and made sure he had both my cell phone number and alternate email ID. I figured it couldn’t hurt to let them know it was consumaffairs@....

Sure enough, on Tuesday I got a call from his supervisor. He started out with a fairly long-winded introduction about how Diminished Value claims are fairly unusual and that the valuations are naturally subjective. He also mentioned that the repairs were done by a quality shop and that repairs don’t have to show up on Carfax if they’re under 25% of the value of the car. I thought for a minute he was going to suggest that I didn’t need to disclose the accident and that there wouldn’t be any diminished value – but, he didn’t go there. He concluded that on a car like a Jag, he understood the value concern. He then asked if I’d be willing to work with them on the amount and offered $2,000. I responded that I was certainly willing to be reasonable, but noted that I had already minimized the cost by not using a rental car and not asking for any mileage or other compensation. Plus, I was out the appraisal cost and time. He started to come back with $2,500, but, on consideration, agreed to pay the full $2,800.

So, other than the utter frustration that the incident happened in the first place, the DV process itself ended up being fairly painless and (I think) reached a reasonable settlement for each side. The check arrived today, along with a release form to be signed & returned. The release form was interesting. I wasn’t surprised that it read that for $5,150 dollars received, I waive further liability to all parties. But, it also included a statement that the claim was contested and that they admitted no guilt. Since I was minding my own business at a stop light, and the tow truck driver was ticked, I won’t be signing any such statement. My first reaction was to edit the statement, initial changes and sign/return it. But, since there was no restriction or release wording on the check, itself, I just stuck it in a drawer.

 

Thanks for sharing, good info.

 

great info. thanks for sharing

 

I posted a note in the (X350/358) thread on getting a professional appraiser in case of an insurance co. wants to total a car.
Most, if not all, insurance co. appraisers just want to low ball the value of your car, be rid of you, and go back to their cellar..
Make sure the appraiser is deemed to be an expert witness in case of court action.

uncheel, you owe your body shop a case of their favorite beverage for leading you to the appraiser and for a successful outcome.

 

Many of our prospective customers ask what our success rate is to which I honestly answer that I don't know because I rarely hear back from our clients. If more people would share their positive experiences then making a diminished value claim wouldn't seem like such a horror show to others.

 

This is a very timely post as I am in the midst of a DV claim now on a 2016 Range Rover Sport with 13k miles. Same scenario, my wife was hit from behind. She was doing 45 and a young lady texting plowed into her(no injuries most importantly.) Only damaged bumper cover, muffler and tow hitch. Bill was 4300.00. We trade her car almost annually and wholesalers and dealer trades are discounting the vehicle 10 to 20%. I had a buyer yesterday from autotrader ready to buy. I told him the car was marked on carfax and he thanked me for my time. Because the lady's car that hit our car was severely disabled, we had to call the police which were kind enough to file our car as involved in minor damage accident.

I have hired a third party appraiser and await their assessment. The insurance company representing the at fault party has offered 1400.00 in dv. While that seems reasonable on a 4300.00 claim the real world says no.

Two years ago i hit a deer in my 2013XFR. I was crushed when I sold the car because I had called the state police and they wrote up the accident. In PA, you cannot claim DV on an accident that is not deemed another's fault. Lost 8-10k on the XFR incident. I will update this post with the adjusters filing and then where we end up after the claim.

For those that want to call BS on the 10 to 20% deduct in value on a carfax incident report, go try and trade or sell you high line vehicle with full disclosure and you will find I am on the money!

 

Actually not always true, at least not in my case. I had a 2015 Porsche Cayman. An old lady in a van backed into me at a stop sign, yes backed into me. The police were called but did not ticket her; her insurance company assumed all responsibility based on the police report, though. Damage was a new bumper cover, painting for it, and a new proximity sensor, thousands of dollars, not hundreds.
I traded the Porsche on my 2016 Jaguar and, although the CARFAX was present, I do not believe it affected my trade value at all.
Larry

 

Sounds like the dealer was either very fair or just negligent. Good luck to them reselling the Cayman for normal market value.

 

Exactly. Would any one go into a dealer and pay the same price for a vehicle that has been involved in any kind of accident as one that was clean as a whistle? No. Even if I knew that the bumper had been repainted, I would expect to get a significant discount on such vehicle when compared to one that was clean / clear of prior history.

 

I saw what they were asking but I have no idea of the actual price sold. They were not discounting the price, but everyone knows the sold price is always lower. The 6 cylinder Caymans were selling at a premium, though.
Larry

 

I just sold a 2012 FJ Cruiser that got rear ended two times within 6 months several years ago (I was not at fault either time). In both cases the rear door, and bumper cover needed to be replaced and the spare wheel needed to be refinished. Both repairs were ~$5k. Went to trade it and was offered ~$5k less than blue book trade value and it was in outstanding shape.

I wish I saw this thread back then when I made the insurance claims - would have gone after DV. Ended up selling it privately for $3k off of blue book.

 

Is there a time period to claim DV after an accident?

 

Revived my appraisal back today loss of value set at 5840.00 which is 4400 below the insurance companies adjustment. The appraisal will be quite valuable when all said and done. I am insisting indurancecslso pay the 300 appraisal fee. Will see if I am successful