Diminished value is the depreciation amount of your vehicle after it has been involved in a wreck. Diminished Value is important because, once repaired, your vehicle has negative vehicle history that will likely show up on CARFAX, not excluding North Carolina 25% damage disclosure laws. The diminished value your vehicle may suffer depends on age, condition, type of damages it sustained, such as frame or uni-body structural damage and the type of parts used in the repairing. Even if the car repairs meet the highest quality standards, potential buyers are unwilling to pay as much for a car they know has been previously damaged.
Things That Can Affect Diminished Car Value Claims
Different things can affect the diminished car value in North Carolina.
Year Model: Many insurers will put up a fight on a diminished car value claim if the car is more than seven years old. Older cars are worth less than newer cars.
Mileage: Mileage can have a big impact on the market value of the vehicle. Many people consider cars with lower mileage better. More mileage will mean more wear and tear and more repairs in the future.
Make and Model: This can be obvious and some car brands are worth more than others.
Condition: The vehicle's condition means a lot too. You may think your car is in great condition, yet by industry experts it's just may be average, maybe worse.
Prior Accident History: If your vehicle has had two accidents, it’s going to be worth less than a car with just one accident. It will be more expensive to litigate a diminished car value claim where you have to calculate the loss from the first accident and remove it from the diminished value that is caused by the second accident.