Diminished value refers to the loss in a vehicle's market price due to its involvement in an accident and subsequent repairs. Even if a car is perfectly repaired to its pre-accident condition, it will likely be worth less than an identical vehicle that has never been in an accident. This is because a vehicle's history (especially accident history) significantly impacts its resale value.
If your vehicle was damaged by another party and repaired, you may be entitled to compensation for this loss in value. This calculator provides an estimate of that diminished value.
How is Diminished Value Calculated?
Calculating diminished value precisely can be complex and often involves professional appraisers. However, a common method used for estimation is the 17c Formula, developed by NADA Guides. While there are variations and other methodologies, the 17c formula provides a reasonable starting point.
The general idea is to:
Determine the vehicle's market value before the accident.
Estimate the loss in value due to the damage and repairs.
The 17c Formula (Simplified Estimation):
The 17c formula typically involves the following steps and factors:
Base Loss: A percentage of the vehicle's pre-accident value. This percentage is often around 10% (or 0.1), but can be adjusted based on the severity of the damage.
Damage Severity Adjustment: This percentage is multiplied by the Base Loss to account for how severe the damage was.
Mileage Cap: The loss is then reduced based on the vehicle's mileage at the time of the accident. A common benchmark is to reduce the loss by 0.1% for every 10,000 miles driven.
Estimated Diminished Value = (Pre-Accident Value * Base Loss Percentage * Damage Severity Factor) – Mileage Adjustment
In our calculator:
Pre-Accident Market Value is the value of your car just before the accident.
Cost of Repairs is relevant as significant repair costs often correlate with higher diminished value, and may be factored into some insurance settlement discussions. While not directly in the 17c formula used here, it's a key piece of information.
Mileage and Vehicle Age are crucial. Newer, lower-mileage vehicles typically experience a higher percentage of diminished value loss than older, high-mileage ones.
Damage Severity (Minor, Moderate, Severe) directly impacts the initial loss percentage.
When to Consider Diminished Value Claims:
Your vehicle was damaged in an accident where another party was at fault.
The repairs were completed.
You believe the vehicle's market value has decreased due to the accident history.
Disclaimer: This calculator provides an estimated value for educational purposes only. It uses a simplified version of common diminished value calculation methods. Actual diminished value claims and settlements can vary significantly based on specific insurance policies, state laws, the complexity of the damage, the vehicle's condition, market demand, and negotiation. For a precise valuation, consult with a qualified auto appraiser or legal counsel.
function calculateDiminishedValue() {
var preAccidentValue = parseFloat(document.getElementById("preAccidentValue").value);
var repairCost = parseFloat(document.getElementById("repairCost").value);
var mileage = parseFloat(document.getElementById("mileage").value);
var vehicleAge = parseFloat(document.getElementById("vehicleAge").value);
var damageSeverity = parseFloat(document.getElementById("damageSeverity").value);
var resultElement = document.getElementById("result");
var baseLossPercentage = 0.10; // Standard 10% base loss for minor damage
var mileageDeductionPer10k = 0.001; // 0.1% reduction for every 10,000 miles
// Input validation
if (isNaN(preAccidentValue) || preAccidentValue <= 0) {
resultElement.innerHTML = "Please enter a valid Pre-Accident Market Value.";
return;
}
if (isNaN(repairCost) || repairCost < 0) {
resultElement.innerHTML = "Please enter a valid Cost of Repairs.";
return;
}
if (isNaN(mileage) || mileage < 0) {
resultElement.innerHTML = "Please enter valid Mileage.";
return;
}
if (isNaN(vehicleAge) || vehicleAge < 0) {
resultElement.innerHTML = "Please enter a valid Vehicle Age.";
return;
}
if (isNaN(damageSeverity) || damageSeverity initialPotentialLoss) {
finalMileageDeduction = initialPotentialLoss;
}
// Calculate diminished value
var diminishedValue = initialPotentialLoss – finalMileageDeduction;
// Ensure diminished value is not negative
if (diminishedValue < 0) {
diminishedValue = 0;
}
// Format the result
var formattedDiminishedValue = diminishedValue.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
resultElement.innerHTML = "Estimated Diminished Value: " + formattedDiminishedValue + "";
}