What is
diminished value?


Inherent diminished value is the decrease in fair market value a vehicle suffers as the result of a collision, irrespective of the quality of repair. Not every vehicle suffers diminished value, and not every type of damage creates diminished value. However diminished value almost always occurs with more than slight damage -- particularly when a late model, classic, or specialty vehicle is involved in the collision.

When a vehicle has been damaged, merely returning the vehicle to its prior appearance and function does not return the vehicle to its pre-loss condition. Issues regarding the vehicle's warranty arise which may include having the warranty restricted or even voided. State and Federal laws may require disclosure of damage and repair. Sales tax value may be lost. Vehicle histories are easy to track, and an adverse history can cost thousands of dollars to a vehicle owner. So merely properly repairing the vehicle can never return it to what it once was. Damage to a vehicle's pedigree is like stamping "Damaged Goods" across a vehicle's title.

Who is affected by
diminished value?


  • Consumers
  • Financial institutions
  • Leasing companies
  • Insurers
  • Collision industry

Vehicle owners, whether they are individuals, private organizations, banks, or leasing companies, suffer loss when their property is stripped of quantifiable value. Insurers suffer when they pay inflated diminished value claims or squander resources while struggling to quantify diminished value. The collision industry is often unfairly blamed for vehicles' post-collision drop in value, when the damage - not the repair - is the source of the decrease.

Financial Institutions and
Leasing Companies:
Interested in
alleviating a
majority of
surcharge conflicts
with customers?


Most people involved in vehicle leasing are aware that conflicts often arise between banks or leasing companies and customers over lease-end inspections and surcharges. The culprit usually causing large surcharges is diminished value. We can provide avenues to leasing organizations and customers to minimize these conflicts. Contact our Lease Group for information and assistance on how to prevent and resolve surcharge conflicts.

We can provide an accurate dollar amount quantifying diminished value. Contact our Diminished Value Group for more information.