Frequently Asked Questions

What exactly is diminished value?

Diminished value is a perceived loss defined by the variance in the final sale price of a repaired vehicle in a retail environment, as compared to the final sale price of an identical, undamaged vehicle in the same or similar environment. There are three types of diminished value claims:

Inherent diminished value: refers only to the fact that the vehicle has sustained collision damage and after the repair, had lost value due to the repair history.
Repair related diminished value: refers to non industry repairs or faulty workmanship that will require corrective action.
Insurance related diminished value: refers to damage that resulted from the initial collision, but was not addressed by the insurance company or the repair facility.

What Factors affect diminished value?

There are several factors that can effect diminished value. Following is a list of the most significant factors contributing to the diminished value. All of these factors are considered in our calculations

date of loss
vehicle age
type of vehicle
mileage at the time of loss
condition and the fair market value of the vehicle prior to the loss
type and extent of physical damage
type of parts used in the repair process

What is the intent of the report?

The intent of our report is threefold:

To analyze the type and extent of damage sustained in the documented loss attached to this report.
To subsequently measure the degree to which the integrity of the vehicle has been compromised by the damage incurred.
To calculate the depreciation in value that occurred after the loss, without the actual sale of the vehicle.

How does Reed Auto Appraisers & Diminished Value Experts LLC calculate diminished value?

The first step in our appraisal process is to analyze the condition and the fair market value of your vehicle prior to the loss. This is most often completed by a local market survey, coupled with official, time appropriate, independent sales data published by multiple, well established and legally recognized industry sources. Once the vehicle's pre-loss value has been determined, the analysis of the collision damage is initiated. The method we employ to analyze the collision repair is a thorough line by line approach, extracting repair operations that may have caused the vehicle to be compromised. Several repair operations are given varying degrees of importance with respect to the amount by which they would affect the vehicles' integrity, and the results are then factored into our analysis. After completion of the collision analysis portion of our report, the post-loss condition rating of your vehicle can then be determined by the appraiser. The appraiser will then measure the change in the fair market pre-loss and fair market post-loss values based on the change in condition rating. The result is an accurate fair market vehicle valuation, backed by our extensive experience in vehicle valuations, performed completely our own ASE and I-CAR certified appraisers, and fully supported by actual, independently verifiable sales data, specific to your vehicle.

What is Reed Auto Appraisers & Diminished Value Experts LLC experience with diminished value claims?

Reed Auto Appraisers & Diminished Value Experts LLC is one of the most well respected names regarding diminished value claims, providing fair and equitable service to all parties that are involved in the claims process. That is because our methodology stays the same no matter the client. As a result, we have had the privilege to provide our services directly to thousands of private owners, hundreds of private attorneys offices located in Maryland, DC and Virginia, multiple automobile dealerships representing over 15 different manufacturers, as well as gain recognition from several major insurance carriers. Our senior appraiser and the company owner, Michael Wigmore, has qualified and testified as an expert witness in over 90 trials in both District and Circuit Courts in Maryland and Virginia, U.S.District Court, as well as at the Maryland Insurance Administration (MIA). In those 90 cases, approximately 50% of the testimony provided was in support of the plaintiff's position and 50% of the testimony was in support of the defense's position, so you can rest assured that we are truly independent appraisers, with only accurate and well documented vehicle valuation appraisals as our ultimate goal.