During the repair process, several parties estimate and calculate diminished value. The term basically describes the pre-loss value of a vehicle that is not restorable, even after repairs are completed.

There are generally three levels of diminished value and five levels of repair. Understanding these stages can help you better understand the overall process.

Immediate Diminished Value
When discussing immediate diminished value, the term applies to resale value in the instant before damage compared to immediately after – prior to vehicle restoration. Therefore, it is necessary to establish what is inherent diminished value and repair related.

Inherent Diminished Value
If your vehicle does not have a notable history of damage, inherent diminished value describes the reduction in a vehicle’s resale value after subsequent damage repairs. A vehicle with history of damage is therefore considered already lower in market value before the repair process.

Repair Related Diminished Value
When repair workmanship is not up to acceptable standards, repair-related diminished value comes into play. This type of diminished value is added to inherent diminished value.

5 Levels of Repair

Your vehicle’s resale value and safety may be affected by shoddy repair work. At the Wreck Check Car Scan Center, we are committed to providing education and support to our customers. This includes assessing issues related to repair practices and potentially negative impacts.

Pre-loss condition is defined as a vehicle that functions and looks just as it did before a crash. The vehicle may diminish in value if it is unsafe, mechanically inferior or there is aesthetic damage remaining from an accident.

Repair Level Two applies when the vehicle has been restored according to up-to-date manufacturer specs, using the most current equipment and methods. This process is completed without the use of robotics, including paint dipping and exposure to temperatures in excess of 400 degrees. OEM parts are used in place of imitation parts in this type of repair.

Insurance Dominated Typical Collision Repair usually involves the use of non-original or inferior parts. These parts often come from a salvage yard or do not have traceable history. The body shop may also utilize plastic auto body filler to complete some repairs.

Cut-rate repairs are similar in that inferior parts and techniques are used to restore a vehicle. Although usually the work of a less experienced mechanic, these practices are often a deliberate effort to cut corners and costs.

Poorly Repaired – Unsafe to Drive typically indicates that an insurance provider has given the option to promote and use inferior parts. The body shop does not object to the practice and is complicit when a restored vehicle is not roadworthy.

To learn more about diminished value and repair processes, reach out to Wreck Check Atlanta today.