Home
Back
Diminished Value Formula:
| From: | To: |
Diminished Value (DV) calculation determines the reduction in a vehicle's market value after it has been damaged and repaired. This is important for insurance claims and resale value assessments, as even properly repaired vehicles often have reduced market value.
The calculator uses the diminished value formula:
Where:
Explanation: The formula multiplies the vehicle's original value by the product of mileage and damage factors to determine the reduced market value after repairs.
Details: Accurate diminished value calculation is crucial for insurance settlements, vehicle sales, and understanding the true financial impact of vehicle damage and subsequent repairs.
Tips: Enter the vehicle's original value in dollars, the appropriate mileage factor, and the damage factor based on the extent of repairs. All values must be positive numbers.
Q1: What is a typical mileage factor range?
A: Mileage factors typically range from 0.5 to 1.0, with lower values for higher mileage vehicles and higher values for lower mileage vehicles.
Q2: How is the damage factor determined?
A: Damage factors are based on the severity of damage, with values typically ranging from 0.1 (minor damage) to 0.9 (severe structural damage).
Q3: Can I claim diminished value from insurance?
A: This depends on your insurance policy and state laws. Some policies allow for diminished value claims, while others may not.
Q4: Does this calculation apply to all vehicles?
A: The calculation is most accurate for modern vehicles with standard repair processes. Classic or rare vehicles may require specialized appraisal.
Q5: How accurate is this calculation method?
A: This provides a general estimate. For precise diminished value assessment, professional vehicle appraisal is recommended.