QuestionMy wife and I just got back from the dealer and learned about " deminished value". We have an 07 Camry and got half the trade in value offered by the dealer ($8000). About 1 year back, my wife got in a fender bender, not her fault. Currently she is waiting for an arbrition meeting. Our car was repaired by our insurance( progressive). What is my best course of action in recouping the diminished value of my vehicle.
AnswerI don't have quite enough information to properly answer you. Here's a breakdown of DV. . .
There are only a few states that allow first party diminished value recovery (claim against your own collision coverage). This means that if you are not in one of about three or arguably four States, you can only recover diminished value as a third party claimant, so you must get paid for your diminished value from the insurance company of the person that hit you (assuming you were not at fault). The exception is UM (uninsured/underinsured motorist) claims. These types of claims are first party claims (your insurance), but treated like third party claims and in most cases your own UM coverage will pay you for lost value, provided you prove it. If you are using UM, simply ask your insurance adjuster to address your lost value and see what happens. Either they will hire an expert, tell you to hire one, or they will attempt to use some unqualified method to make you an offer or deny your claim altogether. If you want to get paid, then get an expert, be prepared to take a person to small claims court or hire an attorney, and make sure you know how much it will cost to force your claim to a resolution.
The prevailing evidence used in diminished value litigation is an expert appraisal or testimony, or both. Recent case law out of AZ reiterates this fact and cites numerous previous cases from all over the country where the evidence for lost value is expert testimony or appraisal or both. I'm here to tell you there is no formula for calculating lost value. I am utilized weekly as an expert consultant in this field and produce professional appraisals and reports for insurance companies, attorneys, business and governmental entities, and individuals alike. We maintain over 16 years of claims information and nearly 11 of those years include diminished value research and records.
Dealer quotes are not always the best evidence if you have to sue, but they surely support the fact of lost value. If challenged, dealer quotes can become tainted with ideas like profit margin and fiduciary interest, plus dealers shy away from testifying and rarely qualify as experts. Their opinions and experience certainly make for strong support, but there is normally no way the dealer will produce a USPAP compliant appraisal that allows an insurance company the opportunity to thoroughly understand the factors involved in a lost value calculation. Depending on the level of damages and how hard you negotiate for a trade in value, the reasonable lost value could be above or below what the dealer quote indicates. One dealer doesn't make up the used vehicle market. Plus, there are many other factors to consider. Clearly, most people would agree that an all-original vintage Rolls Royce that is damaged in a substantial collision loses a lot of value even if it seems to be repaired perfectly. On the other hand, most people would also agree that a 1995 Ford Tempo with over 100K miles would suffer little to no lost value if it were damaged and repaired. Each lost value claim must be investigated on its own merit, and frankly, the average lost value claim for the last three years of vehicle models is about $2000.00. Of course it varies by make, model, and condition, but the newer and more expensive your car, and more extensive the repair, the more the lost value, generally.
I hope this helps, and I'm sorry for the delay, our business is picking up and I'm swamped! Nevertheless, information is always free at Petty Details, LLC! Look us up and I'll consult with you over the phone for free and give you a rough idea of your real lost value. We also offer other free services that may at least help you to completely understand your options. BTW, I have never seen an 07 Camry DV settlement for over $4K.
