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      05-28-2019, 11:13 AM   #1
Bghayes95
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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?
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      05-28-2019, 11:25 AM   #2
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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.
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      05-28-2019, 12:27 PM   #3
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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.
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      05-28-2019, 02:51 PM   #4
Bghayes95
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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.
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      05-28-2019, 02:55 PM   #5
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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.
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      05-28-2019, 11:06 PM   #6
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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.
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      05-29-2019, 02:05 PM   #7
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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.
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      05-29-2019, 02:39 PM   #8
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Hypothetically, has anyone attempted to sue BMW for Diminished Value as a result of bringing out a new model?
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      05-29-2019, 05:31 PM   #9
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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
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      05-30-2019, 02:45 AM   #10
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The market has also moved the price in the event that the car has been repaired following an accident though?
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      05-30-2019, 06:30 AM   #11
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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.
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      05-30-2019, 04:06 PM   #12
Bghayes95
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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.
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      05-30-2019, 06:02 PM   #13
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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.
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      05-30-2019, 06:14 PM   #14
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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
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      05-30-2019, 08:54 PM   #15
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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
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      05-31-2019, 04:51 PM   #16
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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.
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      05-31-2019, 07:51 PM   #17
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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.
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      05-31-2019, 09:01 PM   #18
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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.
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      06-01-2019, 09:34 PM   #19
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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.
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      06-03-2019, 05:14 PM   #20
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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?
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      06-03-2019, 05:16 PM   #21
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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?
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      06-04-2019, 09:09 AM   #22
Bghayes95
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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
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