BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M2 Forum > BMW M2 Discussions > Diminished Value

Post Reply
 
Thread Tools Search this Thread
      05-28-2019, 10:13 AM   #1
Bghayes95
Enlisted Member
10
Rep
27
Posts

Drives: 2018 M2
Join Date: May 2019
Location: Rhode Island

iTrader: (0)

Diminished Value

Who has experience here with Diminished value claims?

I was hit this past Saturday. Other party is 100% liable. Damage totals are roughly $12,000

2018 M2 LCI, base, white, 25k miles. Car was near mint before the accident.

What should I be expecting?
Appreciate 0
      05-28-2019, 10:25 AM   #2
DanG
Major General
DanG's Avatar
United_States
10449
Rep
6,878
Posts

Drives: 2018 M2 AW DCT
Join Date: Aug 2012
Location: Seattle, WA

iTrader: (1)

Garage List
2018 BMW M2  [7.68]
You need to get a diminished value evaluation. They estimate the value of your car before and after the accident repair. The difference is the diminished value. I have found that their estimate is usually 50% of the repair bill on a newer BMW.
Appreciate 3
      05-28-2019, 11:27 AM   #3
miiipilot
Lieutenant Colonel
miiipilot's Avatar
United_States
519
Rep
1,501
Posts

Drives: 2024 M2 Brooklyn Grey 6mt
Join Date: Jun 2010
Location: Cleveland, OH

iTrader: (0)

I think 25k on an '18 is already diminished value.
j/j
I've been in a few accidents and wondered about a DM claim/effect.

I'd say document the entire process, so when you do sell, the buyer might feel more at ease.
__________________
miiipilot
'24 M2 Brooklyn Grey, 6mt, Bi-Color, Black M-Color seats,
'16 MG M2, DCT, Exec. Took Delivery 4/30/16 (Sold)
Appreciate 0
      05-28-2019, 01:51 PM   #4
Bghayes95
Enlisted Member
10
Rep
27
Posts

Drives: 2018 M2
Join Date: May 2019
Location: Rhode Island

iTrader: (0)

Just spoke with an Attorney located in NY that handles this all the time. He threw around a ~12% number for diminished value. I'm going to start the process and will update back here.
Appreciate 1
rich8566608.50
      05-28-2019, 01:55 PM   #5
qnet
Major
qnet's Avatar
United_States
676
Rep
1,012
Posts

Drives: 18 Jeep Wrangler, 18 M2 LBB
Join Date: Feb 2016
Location: Morrow GA.

iTrader: (0)

I had a wreck in my Evo in 2014. In Georgia the insurance companies by law, have to pay diminished value. I've heard you can get a lawyer and get even more (in GA). I think it just depends on your state's laws.
Appreciate 0
      05-28-2019, 10:06 PM   #6
GMe90
Captain
GMe90's Avatar
355
Rep
928
Posts

Drives: 2007 328i Coupe, ZSP, Premium
Join Date: Feb 2013
Location: Knoxville

iTrader: (0)

Garage List
2003 BMW Z4 3.0i  [6.00]
2007 BMW 328i  [10.00]
Ultimately what you will need is evidence quantifying the diminished value. To that end, you need to obtain a diminished value valuation and present it to the insurance company. If the insurance company tries to low ball you or not pay, file a lawsuit. You can typically get a trial date pretty quickly in small claims court if the amount in dispute is within the jurisdictional limits of the small claims court. In Tennessee, it's $25k or less.
Appreciate 0
      05-29-2019, 01:05 PM   #7
RocketTR
Private First Class
RocketTR's Avatar
124
Rep
128
Posts

Drives: Audi
Join Date: Apr 2019
Location: NJ

iTrader: (0)

Quote:
Originally Posted by Bghayes95 View Post
Just spoke with an Attorney located in NY that handles this all the time. He threw around a ~12% number for diminished value. I'm going to start the process and will update back here.
I have a close friend who works in the insurance industry and I've heard that 15% is usually pretty close on most cars. But it obviously depends upon the car, so that percentage is going to vary. No matter what, a vehicle that has an accident history is going to have a lower value than an otherwise identical vehicle without an accident history. Your job is to really understand the insurance company's valuation and how they come up with your number.

In any accident that is not your fault, you should be receiving diminished value. The nice thing about that is the longer you keep the car, the less diminished value matters for cars that depreciate (which is almost all of them) over time.
Appreciate 0
      05-29-2019, 01:39 PM   #8
M Fifty
Banned
844
Rep
1,962
Posts

Drives: M2 & 330CI
Join Date: May 2018
Location: The Interweb

iTrader: (0)

Hypothetically, has anyone attempted to sue BMW for Diminished Value as a result of bringing out a new model?
Appreciate 2
      05-29-2019, 04:31 PM   #9
nioh_lbbm2
Lieutenant Colonel
nioh_lbbm2's Avatar
1717
Rep
1,899
Posts

Drives: M2
Join Date: Mar 2018
Location: California

iTrader: (0)

Quote:
Originally Posted by M Fifty View Post
Hypothetically, has anyone attempted to sue BMW for Diminished Value as a result of bringing out a new model?
As hilarious as that is and as much as I want someone with "eff you" money to try it for giggles I don't think there's a basis for a claim here so no damage was done. The market moved the price.

In an accident there is a clear valuation that is lost as a direct result of physical damage
Appreciate 0
      05-30-2019, 01:45 AM   #10
M Fifty
Banned
844
Rep
1,962
Posts

Drives: M2 & 330CI
Join Date: May 2018
Location: The Interweb

iTrader: (0)

The market has also moved the price in the event that the car has been repaired following an accident though?
Appreciate 0
      05-30-2019, 05:30 AM   #11
silvercas
Second Lieutenant
87
Rep
283
Posts

Drives: One
Join Date: Apr 2010
Location: Jersey

iTrader: (0)

look up Georgia diminished value calculation. also run a carfax and get value now before it hits. then run one once it hits. this is your diminished value. though with 25k miles, you'll see the Georgia diminished value calculation will take that into account. Call the other party insurance and advise them you would like to file a DV claim.
Appreciate 0
      05-30-2019, 03:06 PM   #12
Bghayes95
Enlisted Member
10
Rep
27
Posts

Drives: 2018 M2
Join Date: May 2019
Location: Rhode Island

iTrader: (0)

Thanks for all the help and tips. As i mentioned above i've been speaking with an attorney out of NY who deals with these scenarios all the time.

I can say for sure that the claims adjuster for other party's insurance (Progressive) would not acknowledge the words "diminished value". I kept getting the workaround and would not get a clear answer to the matter. I had to submit documents proving the accident will negatively impact the cars value for them to speak up.
Appreciate 0
      05-30-2019, 05:02 PM   #13
doug_999
Brigadier General
doug_999's Avatar
2539
Rep
3,967
Posts

Drives: 2011 1M/2021 992/2023 X3
Join Date: Mar 2008
Location: Chicago, IL

iTrader: (0)

1. I don't think all States allow diminished value.
2. Even if you are to get it, the argument that I got was "you have no diminished value until you go to sell the car" Meaning, your hit today is a lot worse than tomorrow - but ultimately you have no real loss... unless you are selling the car today.

I really wish there was some general across the country formula. For me (actually my wife) the diminished value on her 2010 Cooper Clubman ended up being near $0 as she kept is an additional 7 years. But had she sold it immediately after the 96 year old lady parked next to it, turned her wheel the wrong way and then backed up, removing the side of the car... it would have been more.
__________________
2011 1M, Black loaded sans sat radio
2021 911 C4S Gentian Blue, manual
2023 X3 M40i - loaded sans Park Assist
Appreciate 0
      05-30-2019, 05:14 PM   #14
Happy Motoring
Lieutenant
Happy Motoring's Avatar
United_States
474
Rep
449
Posts

Drives: OG M2
Join Date: Mar 2018
Location: Dallas, TX

iTrader: (0)

Garage List
2017 BMW M2  [10.00]
Quote:
Originally Posted by M Fifty View Post
Hypothetically, has anyone attempted to sue BMW for Diminished Value as a result of bringing out a new model?
Thank you for the laugh
Appreciate 0
      05-30-2019, 07:54 PM   #15
silvercas
Second Lieutenant
87
Rep
283
Posts

Drives: One
Join Date: Apr 2010
Location: Jersey

iTrader: (0)

Quote:
Originally Posted by doug_999 View Post
1. I don't think all States allow diminished value.
2. Even if you are to get it, the argument that I got was "you have no diminished value until you go to sell the car" Meaning, your hit today is a lot worse than tomorrow - but ultimately you have no real loss... unless you are selling the car today.

I really wish there was some general across the country formula. For me (actually my wife) the diminished value on her 2010 Cooper Clubman ended up being near $0 as she kept is an additional 7 years. But had she sold it immediately after the 96 year old lady parked next to it, turned her wheel the wrong way and then backed up, removing the side of the car... it would have been more.
The formula I found when I just went through this is based on 17c formula diminished value
Appreciate 0
      05-31-2019, 03:51 PM   #16
Bghayes95
Enlisted Member
10
Rep
27
Posts

Drives: 2018 M2
Join Date: May 2019
Location: Rhode Island

iTrader: (0)

Quote:
Originally Posted by silvercas View Post
The formula I found when I just went through this is based on 17c formula diminished value
I may be wrong but I believe that is a state of Georgia specific formula. There seems to be no set in stone formula that everyone uses.
Appreciate 0
      05-31-2019, 06:51 PM   #17
DanG
Major General
DanG's Avatar
United_States
10449
Rep
6,878
Posts

Drives: 2018 M2 AW DCT
Join Date: Aug 2012
Location: Seattle, WA

iTrader: (1)

Garage List
2018 BMW M2  [7.68]
Quote:
Originally Posted by Bghayes95 View Post
I may be wrong but I believe that is a state of Georgia specific formula. There seems to be no set in stone formula that everyone uses.
I know that there is no formula in Washington. Here we need to get a diminished value appraisal to get an insurance company to pay a diminished value claim.
Appreciate 0
      05-31-2019, 08:01 PM   #18
BruceM
Major
983
Rep
1,153
Posts

Drives: '17 6MT MG M2,930,Jag XKR 5.0
Join Date: Jan 2016
Location: Seattle

iTrader: (0)

Quote:
Originally Posted by DanG View Post
I know that there is no formula in Washington. Here we need to get a diminished value appraisal to get an insurance company to pay a diminished value claim.
I live in Seattle, and had a diminished value claim once. $10,000 damage on an expensive car bought brand new and driven only 3,000 miles. It was fully repaired by the insurance company of the dude who hit me. I made a diminished value claim, and that insurance company offered me $900. Had to track their insured down (he was dodging service, and he was good at it) and serve him with a complaint. Insurance company (USAA) then, and only then, increased its offer by a factor of 4. So I took that.

Some of them just don't want to pay these claims.
Appreciate 1
DanG10448.50
      06-01-2019, 08:34 PM   #19
silvercas
Second Lieutenant
87
Rep
283
Posts

Drives: One
Join Date: Apr 2010
Location: Jersey

iTrader: (0)

Quote:
Originally Posted by Bghayes95 View Post
I may be wrong but I believe that is a state of Georgia specific formula. There seems to be no set in stone formula that everyone uses.
That could be the case but I found it very helpful for my recent diminished value claim that was paid.
Appreciate 0
      06-03-2019, 04:14 PM   #20
rich8566
Major
rich8566's Avatar
United_States
609
Rep
1,124
Posts

Drives: M2 + Z-4
Join Date: Sep 2007
Location: FL

iTrader: (0)

Garage List
2014 BMW M235i  [0.00]
Quote:
Originally Posted by Bghayes95 View Post
Just spoke with an Attorney located in NY that handles this all the time. He threw around a ~12% number for diminished value. I'm going to start the process and will update back here.
12% of the value of the car or 12% of the cost of the repair?
__________________
Current: 2017 ///M2 manual 2004 E85 Z-4 manual
Appreciate 0
      06-03-2019, 04:16 PM   #21
rich8566
Major
rich8566's Avatar
United_States
609
Rep
1,124
Posts

Drives: M2 + Z-4
Join Date: Sep 2007
Location: FL

iTrader: (0)

Garage List
2014 BMW M235i  [0.00]
Quote:
Originally Posted by RocketTR View Post
Quote:
Originally Posted by Bghayes95 View Post
Just spoke with an Attorney located in NY that handles this all the time. He threw around a ~12% number for diminished value. I'm going to start the process and will update back here.
I have a close friend who works in the insurance industry and I've heard that 15% is usually pretty close on most cars. But it obviously depends upon the car, so that percentage is going to vary. No matter what, a vehicle that has an accident history is going to have a lower value than an otherwise identical vehicle without an accident history. Your job is to really understand the insurance company's valuation and how they come up with your number.

In any accident that is not your fault, you should be receiving diminished value. The nice thing about that is the longer you keep the car, the less diminished value matters for cars that depreciate (which is almost all of them) over time.
15% of the value of the car or 15% of the cost of the repair?
__________________
Current: 2017 ///M2 manual 2004 E85 Z-4 manual
Appreciate 0
      06-04-2019, 08:09 AM   #22
Bghayes95
Enlisted Member
10
Rep
27
Posts

Drives: 2018 M2
Join Date: May 2019
Location: Rhode Island

iTrader: (0)

Quote:
Originally Posted by rich8566 View Post
15% of the value of the car or 15% of the cost of the repair?
15% of vehicles value
Appreciate 1
rich8566608.50
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 10:29 AM.




m2
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST