Glossary of Diminished Value Terms

Total Diminution: The total diminution as indicated in one of our reports is a projection of the loss in value the subject vehicle has sustained as a result of a physical damage loss. Because it is impossible to definitively predict the selling price an item offered on the open market, the figures provided herein are for the purpose of settling a claim or documentation for financial records. All vehicle sales should provide full disclosure of prior damage history as required by state and federal laws. In addition to criminal penalties imposed by states, attempts to conceal damage and repair history may incur civil liabilities.

Pre-Accident Value:  Also known as pre-loss value. This is what a vehicle was worth before the covered loss or accident. The values used herein are generated from an accepted used car and truck value guide. To establish the pre-loss value of a car uses the Kelley Blue Book, a standard treatise utilized by consumers, lenders and those in the automotive trade.

Perceptual Diminution: The loss in value based solely upon the disclosure of the damage. The physical damage causes the loss, and the repair restores the majority of that loss in value. Using an undamaged vehicle as a baseline, there is a differential in the market for used cars with a history of damage. Perceptual diminution is irrespective of repair quality. Many states require that collision damage be disclosed or noted on title documents.

Work Defects – Repair: Also known as Repairer Deficiency. Diminution of value is most often attributed to poor repair quality. If, in the opinion of the program operator, the repair work is flawed, contains defects, or could have been performed in such a way that the end result would have been better in terms of accuracy, safety, appearance or durability, those defects will be noted under this heading.

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