What is Diminished Value & How Does it Affect Your Car?

Do you know what diminished value means for a car? Do you know you can recover the loss in a car’s market value from a car accident? Learn more about the concept of New Jersey diminished value to make sure you don’t lose your right to keep your vehicle in its maximum value.

Can you introduce yourself and tell us what you do in MMI Consulting?

Hi, my name is Matthew Meehan and I am the owner of MMI Consulting, LLC. I began MMI Consulting 2002 after a 20+ year career in the automotive and insurance industries. I am currently certified in Auto Damage Analysis and Estimating by the National Institute for Automotive Service Excellence (ID# ASE-5455-8110), and am a current member of the International Automotive Appraisers Association (IAAA Appraiser ID# 1003050014). MMI specializes in performing Diminished Value Appraisal Reports, antique and classic car valuation appraisals and auto body shop management and consulting services. MMI Consulting LLC are not attorneys and we do not offer legal advice.

Diminished value is a new concept for many people. Can you simply explain what it means and why we might need it?

While there are several types of Diminished Value, the most common type is called Inherent Diminished Value. Simply put, Inherent DV is the loss in a vehicle’s market value due to an adverse event, such as a collision, even though the vehicle is professionally repaired. Based on a nationwide survey performed by MMI through Survey Monkey we found the majority of consumers would not even consider buying a car with an accident history! Here is a brief summary of some of the findings of the survey:

• Prior to purchase, verification of a used car’s previous accident history is important to potential consumers
• lnternet sites such as Carfax@ and AutoCheck@ as well as seller disclosure play an important part in the verification process by consumers of a used car’s accident history
• Accident history, even when expert repairs have been achieved, does come into play when consumers are making used car purchasing decisions, with the impact often leading to non-purchase of such a vehicle
• For the smaller number of consumers who would consider the purchase of a vehicle with an accident history, a monetary discount would be expected

When and how does a car driver file a diminished value claim?

Unfortunately, most New Jersey insurance policies have exclusions that prevent a person from collecting for DV through their own insurance. However, if someone else is at fault for an accident that causes damage to your vehicle, you may be able to recover the loss in value to your vehicle. Diminished Value Appraisal Reports are usually done after the vehicle is completely repaired and the total cost of repairs is determined. The Diminished Value Appraisal Report, completed by MMI, would be submitted to the at fault party’s insurance carrier by the vehicle owner.

How does the loss value of a car be determined? What factors do you consider when evaluating it?

There are many factors that come into play when establishing the amount of Diminished Value a vehicle has incurred due to an accident. The year, make, model, mileage, condition and the extent of damage all play an important part in calculating DV. Other factors such as air bag deployment and structural damage are critical in determining the amount of DV.

Does diminished value service in New Jersey have any specific regulation from other states?

To the best of my knowledge, there are no specific regulations in New Jersey.

Can you provide a case that we help your client benefit from your services? 

As I stated earlier, we are not attorneys and stay away from citing case law. I would recommend that readers search Diminished Value on the web. There is a good deal of information about DV, some good and some bad, so be careful. A great place to start is my website. The main purpose of filing DV claims is to make car owners whole after an accident that was not their fault. Having an accident and going through the insurance and repair process can take time and has challenges. When someone goes to sell their vehicle after an accident, they may learn at that time that their car has lost value and is not worth what it would have been had the accident never occurred. The purpose of collecting on a Diminished Value claim is to recoup this loss in value.

Anything you’d like to share with our readers?

MMI Consulting, LLC offers a free consultation on your potential DV claim. As a member of the International Automotive Appraisers Association, I am required to complete yearly training and testing as well as follow the IAAA code of ethics. I would like to take this opportunity to thank the Nutley Kia for allowing me to provide you with a little information on MMI Consulting, LLC.

Check out New Jersey certified used cars inventory at Nutley Kia now. Car history report available.

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