$22k Diminish Value - Appraisal Service?

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AndThen
Posts: 30
Joined: Sun Mar 01, 2015 4:32 pm

$22k Diminish Value - Appraisal Service?

Post by AndThen »

Hello All,

In Oct. 2021 we put a deposit down on a new vehicle.
In April 2022 we received the vehicle and began driving
In May 2022, someone backed into it in a parking lot.

2 days before the accident, I had a Carvana offer for $58k for the vehicle (MSRP $54K).
On the day of the accident, after we got home, Carvana's offer for the same vehicle, fully repaired, with a noted accident, got an offer of $36k.

Seems like that should be good enough for a diminished value report, having both quotes.

Kelly Blue Book, has the value of the vehicle, pre-accident as $62K. So there is a concern if I send the pre accident value of carvana's offer a $58k, the insurance company (State Farm) might take the difference between that low number, and a higher kbb post-accident value. so the diminished value will be calculated to a lower amount.

Should I get an appraiser to handle the diminished value claim, and demand letter, and if so are there any recommendations?
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lthenderson
Posts: 6683
Joined: Tue Feb 21, 2012 12:43 pm
Location: Iowa

Re: $22k Diminish Value - Appraisal Service?

Post by lthenderson »

AndThen wrote: Fri May 13, 2022 9:27 am Should I get an appraiser to handle the diminished value claim, and demand letter, and if so are there any recommendations?
I recommend you ask your insurance agent. Every state and insurance company is different and in my state with my insurance company, they do all the calculations internally.
tim1999
Posts: 4142
Joined: Tue Dec 16, 2008 7:16 am

Re: $22k Diminish Value - Appraisal Service?

Post by tim1999 »

I am not in the insurance adjustment business, but I highly doubt they will rely on Carvana offers to determine the outcome of a diminished value claim.
Katietsu
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Joined: Sun Sep 22, 2013 1:48 am

Re: $22k Diminish Value - Appraisal Service?

Post by Katietsu »

Unless this is an extremely odd parking lot of incident, there is no way you will be given $22,000 for diminished value. Are you saying that your second Carvana offer was based on your self report of a generic accident? Diminished value, in my experience, is proportional to the amount of damage. How much is the repair work going to cost? What damage was done?
navyitaly
Posts: 266
Joined: Fri Jun 13, 2014 7:18 am

Re: $22k Diminish Value - Appraisal Service?

Post by navyitaly »

I hear you, but your diminished value isn't $22k.

What you didn't do that would hurt your claim is do an appraisal on carvana without the damage..maybe the market for that car went down suddenly? what kind of car is it?

what would a dealer or carmax offer you car now? what about vroom? you would need more proof that that.
Jack FFR1846
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Location: 26 miles, 385 yards west of Copley Square

Re: $22k Diminish Value - Appraisal Service?

Post by Jack FFR1846 »

Carvana gave you THEIR offer both times. This does not set the market value of the car. For example, if you had a 1 year old Mustang and Carvana had 50 other 1 year old Mustangs, they would not want your car at this time. Thus the offer would likely be their "go away" offer. If you went to Car Max and Vroom to get offers, they could very well be $58k.

I also know that mileage matters a lot. I had one of my cars in to get a quote at about 98k miles and was given a quote of $6800. A few months later (after the winter), I went back in with 101k miles and was given a quote of $2800. The sales person said that the 100k mile mark always resulted in a dramatic drop in value for them. Could it have been that the quotes were in December and March and so another model year clicked by? Maybe.

When you get right down to it, you really don't suffer diminished value until you actually sell the vehicle. I don't know who you would plead your case to in order to squeeze money out of someone.
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