What is Diminished Value?

Diminished VALUE​

Diminished Value or Diminution in Value is defined as that portion of a damage vehicle’s Pre-Loss Value that cannot be restored through the repair process.

3 Levels of Diminished Value

Immediate Diminished Value

Immediate Diminished Value is defined as the difference in resale value of a vehicle immediately before damage occurs and immediately after damage occurred to vehicle AND prior to repair. When resolving property damage claims, Inherent Diminished Value and Repair Related Diminished Value are normally used.

Inherent Diminished Value

​Inherent Diminished Value is defined as the amount by which the resale value of a repaired vehicle has been reduced solely as a consequence of the vehicle now having significant damage history. The fact that a vehicle has a damage history decreases the overall market value of the vehicle.

Inherent Diminished Value does not take into consideration any additional loss of the vehicle value due to claim related or repair related diminished value

Repair Related Diminished Value

Repair Related Diminished Value is the loss of vehicle value as a consequence of improper collision or mechanical repairs. Repair Related Diminished Value is an additional claim to the claim for inherent diminished value.

5 Levels of Repair

When it comes to the repair of your vehicle after a collision, the level of repair can not only affect the market resell value but it could also affect the safety of the vehicle. Wreck Check Car Scan Center’s is committed to educating the consumer of the issues surrounding improper collision and mechanical repairs.
The following repair levels outline the most common collision repair results and the effect it may have on your vehicle

DV – Repair Level One

True Pre-Loss Condition exists when a damaged vehicle has been repaired to pre-loss condition in all categories related to function, appearance, safety and warranty preservation. The condition of value or monetary restoration relates to compensation to the owner for the loss in market re-sell value of the vehicle (inherent diminished value).

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DV – Repair Level Two

Repaired to Pre-loss Condition, to the “Best of Human Ability” means the repairers followed the most current documented manufacturer specifications and utilized repair equipment and techniques approved by the manufacturer at the time of repair. That the use of ROBOTICS WERE NOT used in the repair of the vehicle or that the vehicle WAS NOT subjected to paint dipping or baking temperatures of 400 plus degrees. That only OEM parts were utilized for replacement of damaged parts and No imitation parts were used in this repair.
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DV – Repair Level Three

Repaired to “Insurance Dominated Typical Collision Repair” means the repairers may have used some OEM and some parts from sources other than the original manufacturer called imitation parts. The repairers may have used Salvaged parts that were untested or history verified. Areas of the vehicle may have been repaired using a plastic auto body filler material.
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DV – Repair Level Four

Repaired to “Industry Sub-Standard-Cut Rate Repair” (Most Common) exists when repairers use, used salvaged parts, non-original imitation parts**, excessive body plastic repair material, limited materials with regard to coatings, caulking or sealer’s. This repairer is either inexperienced or is willing to risk their reputation on a cut-rate repair.

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​DV – Repair Level Five

“Poorly Repaired- Unsafe to Drive” is a repair where the insurance company specified imitation parts and the repairer agreed to use them without protest in repair of the subject vehicle. These parts have been determined by experts and the courts to be inferior to OEM parts in many respects. Imitation parts WILL void factory warranties on the imitation component itself and on all other related components that attach or may fail due to the imitation part.

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Why Choose Wreck Check Atlanta?

#1 In The Detection Of Improper Collision & Mechanical Repairs & The Leader In The Evaluation Of Diminished Value.

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Atlanta’s #1 Post Repair Inspectors
Better Business Bureau A Rating
Wreck Check Atlanta, Auto Inspection Stations, Woodstock, GA
Beware of Appraisers Posing as Consumer Advocates

Before hiring an appraiser, Ask them how many diminished value claims are referred to them by Insurance Companies. The way they answer this question will tell you about their intentions.

Insurance companies like to minimize the amount they pay out on claims. Any Appraiser stating they can get you a diminished value appraisal the insurance company will accept likely works for the insurance company, and this represents a conflict of interest for the vehicle owner.


I've Know RJ for years through my being he and his father's industry/business consultant (Auto Damage Experts, Inc. (ADE) and have found RJ to be a person of integrity and honor... and he can be a pit-bull when helping his customers protecting their rights.

While some may now see us as competitors, I am proud to have RJ as an industry colleague as I know he will represent it with humility and his ongoing quest to provide the best serve possible. Proud to have him as a member of the Post Repair Inspection profession.

Wishing him the best in his new endeavor!

Barrett Reed Smith r May 8, 2017