Diminished value is a term used to describe a sudden, unexpected, clearly defined occurrence — unlike depreciation which refers to the loss of property value over a period of time. With automobiles, diminished value is the decrease of the value related to a vehicle after it has been involved in an accident and has since been repaired.
Diminished value claims are based on the fact that the value of a car is extremely reduced after it has been in a wreck, despite the fact that it has had the necessary repairs. In most cases, car buyers, individuals or car dealerships will not buy a car that was involved in a wreck simply because there is no way to tell whether or not the car is as functional as it was when new.
How is Diminished Value Calculated?
An owner of a vehicle/property that has not been completely destroyed and has diminished in value at a greater than normal rate as a result of damage has the right to recover from the responsible party for that loss. The proper measure of damage in Arizona provides for the difference between the value of the vehicle/property immediately before the loss (i.e. the accident) and the value immediately after the loss.
In order to determine the value of your vehicle/property after the loss one would need to have a skilled appraisal of the vehicle/property performed and an expert opinion provided. Schenk Podolsky, Attorneys at Law of Mesa, Arizona, can help find the right skilled appraiser for your vehicle/property. Some factors that will affect the diminishment in value of your vehicle/property are: the extent of frame and structural damage, and the make, model, year mileage and options. Other sources such as Kelly Blue Book, N.A.D.A., Edmunds, Black Book, and Autotrader may also be utilized.
If you have been in an accident or have had your vehicle/property damaged by another having Schenk Podolsky, Attorneys at Law of Mesa, Arizona at your side will help alleviate any possible problems that could occur through the process of filing a diminished value claim. With the right help, you can be getting the compensation you deserve.