Diminished value?

[retrosmiths]

Short story, I got rear-ended in an intersection. Body shop told me there is no frame damage, but they will do an alignment to make sure. I also don't think the title has been changed to salvaged as the repair bill amounted to (only) $7k, not more than 50% of the price of the vehicle.

My question is, if I want to sell this in the future, how will this accident affect the price, given that it's mostly cosmetic?

And in the case that there is a reduction with the resale value, how do I prove that? Here's the exact word from the lawyer, minus some personal info:

It is extremely difficult to recover for diminished value. Even if you sell the car for a lesser amount than a comparable vehicle, it would be difficult to prove diminished value solely due to the accident because there are so many different factors that go into value (age, condition, mileage, etc.). It would be impossible to find a car in the exact same condition as yours to prove that the diminished value was solely due to the accident.

As plaintiff you have the burden to prove damages with a reasonable certainty. Insurance companies will not easily pay out on diminished value because it is inherently speculative, so they will force you to file a lawsuit. Our retainer agreement does not cover filing lawsuits for diminished value, so if you would like to pursue it, I’d recommend you pursue it on your own in small claims, especially since there isn’t a huge sum of money involved. You would need solid documentation that the car’s value has diminished SOLELY because of the accident, such as multiple dealer quotes on paper stating that they are offering you less solely because of the accident. However, even the dealer quotes are speculative because it depends on the opinion of that particular dealer and it can change from person to person.

[strat61caster]

In the end when you sell this car (which, I have trouble comprehending) how much value do you think you will lose?

Facts:
It got rear ended
Damage was non-structural, fixed by an assumedly 'good' and professional body shop
This doesn't really show up in any third party reports and if it does will likely be a vague "accident repaired around this date and mileage" note.

At most you're looking at a couple thousand dollars diminished value when you sell (if you sold today I would be surprised if it was more than $2k difference from a non-wrecked car), less if you wait longer to sell the car or if you keep it in otherwise pristine condition. I'd rather a car that was crashed, repaired properly and maintained well over something that was beaten to death but never in an accident.

It's probably not worth the effort in my opinion, there's a reason the legal advice you got was to just leave it.

Unless you've got a salvage title on your hands, then it's definitely a diminished value case.

[userjack6880]

I was rear-ended a few months ago, and the damage was minor cosmetic. About $2k in damage. Progressive, the other guy's company, offered me $500 in diminished value. While I know the current value may have dropped a bit, I know I don't plan on ridding myself of the car, and the difference years down the line, if I *do* sell it, will probably only be about $500 or so anyways. It was pretty fair, and honestly I was expecting less or even a no (initially). The car drives well, and unless you look really, really close at the paint finish, you can't tell it was hit at all (love my body guy - this was his first twin ever, and he fixed her up like a pro, which he is).

So, with $7k in damages, and if they were significant enough, and if the body work is *obviously* redone, you can definitely get more for it. You just need to talk to your adjuster *after* all the repairs are done to see what you need to do this, and work at him until you feel it is fair. It will also depend on the state. In Mississippi, there's prescient where they're required to pay out if you ask for it. It doesn't exactly stipulate *how* much.

Even some pretty nasty accidents, the value of the twins aren't lost *that* much. Not as much as other vehicles would suffer. It's still a valuable bucket of parts.

[jblmr2]

Most states require you to disclose any mechanical issues with a car when it's sold. If you were perfectly honest you should tell a potential buyer about the accident. The reality is that the only way a private seller is going to be compromised is if a potential buyer suspects you haven't been honest and turns you in to appropriate authorities. Worst case scenario is a hand slap.

If the repairs have been done in a professional manner there should be no worries about a substantially reduced value.

[86-tundra]

I think OP's point is the value is diminished because of things like car fax.

Why buy a car that's been in an accident when you could buy one for the same price that hasn't?

[retrosmiths]

Originally Posted by trevorovert

I think OP's point is the value is diminished because of things like car fax.

Why buy a car that's been in an accident when you could buy one for the same price that hasn't?

This.

[jblmr2]

Please excuse an old fart who didn't even think about the Car Fax angle.

[86-tundra]

Originally Posted by jblmr2

Please excuse an old fart who didn't even think about the Car Fax angle.

Lol, no worries. Not sure how car fax works, but I would hope they would only document it as being in a wreck if you actually needed mechanical repairs.

If you got into a fender bender and needed a new bumper, nothing else, I would hope it wouldn't show up on car fax.That will surely diminish your value, and pretty unnecessarily.

[Djratrap]

Originally Posted by retrosmiths

Short story, I got rear-ended in an intersection. Body shop told me there is no frame damage, but they will do an alignment to make sure. I also don't think the title has been changed to salvaged as the repair bill amounted to (only) $7k, not more than 50% of the price of the vehicle.

My question is, if I want to sell this in the future, how will this accident affect the price, given that it's mostly cosmetic?

And in the case that there is a reduction with the resale value, how do I prove that? Here's the exact word from the lawyer, minus some personal info:

I just dealt with this issue as i was hit by someone. Diminished value is not that hard to obtain. Ask for the repair order and have a professional appraiser look at the car. They usually charge $200-400 and the amount will be given back in your diminished value case. Worst case you take them to small claims court (no lawyers necessary). The insurance companies are pretty sneaky they won't give it to you unless you ask, so call the insurance you are dealing with and let them know you'd like to start a claim. Some even have a limited time window. Make sure to do that as soon as possible.

[chulooz]

Originally Posted by trevorovert

Lol, no worries. Not sure how car fax works, but I would hope they would only document it as being in a wreck if you actually needed mechanical repairs.

If you got into a fender bender and needed a new bumper, nothing else, I would hope it wouldn't show up on car fax.That will surely diminish your value, and pretty unnecessarily.

And why wouldnt you expect a car report history site to include relevant car history? (they do track cosmetic repairs)

[86-tundra]

Originally Posted by chulooz

And why wouldnt you expect a car report history site to include relevant car history? (they do track cosmetic repairs)

Because not everything is recorded to car fax. Like I said, I'm not sure how it works, but if you just go to a body shop down the road and never speak to your insurance about it, I'm assuming it's not going to show up on car fax.

**that is to be said, something minor like a dent in your bumper, etc.

[THA STI GUY]

Anything over 5K will mark your car as a damage discloser on any car fax site. The value of the car will be down some because of it. If traded in or sold to a dealer they would be able to see the damage discloser but private they wont know unless they get a car fax report.

[993Fan]

Talk to the insurance adjuster.

I claimed diminished value once and the company agreed to an amount which was 50% of the repair cost without a fuss. If you can justify a higher diminished value, present whatever evidence you have to the adjuster.

[humfrz]

Originally Posted by jblmr2

Please excuse an old fart who didn't even think about the Car Fax angle.

Well, this time gramps, but try to get out more ....

humfrz - who else ....