Finance USA

Aug 14 2017

Diminished Value Calculator #orielly #auto #parts

#auto value


What is a Diminished Value Calculator and how is it used?

Diminished Value by definition is the loss in resale value a vehicle suffers after an accident.

When examining loss in value, we consider three major components:

  1. Overall Vehicle Value which includes:
    • Actual Cash Value
    • Mileage
    • Vehicle type (4 door, 2 door, minivan pickup truck etc..)
    • Vehicle Class (entry level, upscale, luxury etc )
    • Vehicle desirability index
  2. Damage location, type and severity, we check for:
    • Structural Damage
    • Airbag Deployment
    • Damage to Value Ratio
    • Parts Ratio
  3. Vehicle History Report, we re looking for:
    • The Number of owners
    • Previous Accidents
    • Personal use or commercial

Since each of the components requires an in depth analysis, achieving a loss in value result instantly is impossible. All online calculators are simply bad.

The 17c formula delivers immediate results, this formula is used by most insurance carriers.  We don t recommend the use of this formula as it is inaccurate and severely flawed.

If you want to get an idea of what the insurance company will offer you, download and use this calculator.


Flaws in the 17c formula:

  1. Established a random and arbitrary cap (10% of retail)
  2. Uses NADA retail and not ACV
  3. Caps diminished value at 100,000 miles or less
  4. Uses a damage coefficient that s subjective
  5. Uses mileage twice (once in obtaining NADA and the second through a modifier)

To get a free loss in value quote that s accurate, please fill out the questionnaire below:

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