What is diminished value?

A car that has been in an accident has a reduced market value than a comparable vehicle in pre-crash condition, depending on its age and condition. Potential purchasers will not pay as much for a car that has been damaged previously, even if the car repairs are of the best quality.

The gap between the pre-accident car's market value and the post-repair car's market value is referred to as reduced value.

 

Elena G.
Elena G.
Answered on March 4, 2022

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