Charlotte Diminished Value Claim Lawyers

How is the diminished value of a car calculated in Charlotte?

According to Kelley Blue Book, the standard formula for calculating diminished value dates back to a Georgia case, Mabry vs. State Farm, decided in 2001.

The key guidelines are the fair market value of your car (what a willing, informed buyer would pay for your car in its pre-accident condition and a willing seller would agree to accept) and the mileage on your car when the accident happens.

The main diminished valuation steps are:

• Determine the market value of your car before the accident. A common technique is to use the Kelley Blue Book’s car valuation tool to determine the market/book value. You’ll need to supply your car’s vehicle identification number (VIN).
• Determine the market value’s 10% cap. Generally, you multiply the pre-accident market value by 10%. For example, if your car has a market value of $30,000, the cap value is $3,000.
• Use a damage multiplier. This involves multiplying the 10% cap number (above) by a “damage multiplier” that ranges from 0.00 to 1.0. depending on the extent of the damage. Multiply the cap as follows:
  • 1.00 for severe structural damage
  • 0.75 for major damage to structure and panels
  • 0.50 for moderate damage to structure and panels
  • 0.25 for minor damage to structure and panels
  • 0.00 for no structural damage

For example, continuing with our example, if your car has moderate damage, the new diminished value amount is $3,000 x 0.5 = $1,500.

• Use a mileage multiplier. You now take the new figure and use a second multiplier called a mileage multiplier based on the number of miles on your car at the time of the accident:
  • 1.00 for 0 – 19,999 miles
  • 0.80. for 20,000 – 39,999 miles
  • 0.60 for 40,000 – 59,999 miles
  • 0.40 for 60,000 – 79,999 miles
  • 0.20 for 80,000 – 99,999 miles
  • 0.00 for 100,000 – miles or more

In our example, if your car has 45,000 miles, the new diminished value amount would be $1,500 x 0.6 = $900.