A study conducted recently shows that car accidents occur globally every ten seconds. This amounts to thousands of traffic accidents every year in these countries. When damage to a car happens as a result of a car crash such as colliding head-on with an oncoming car, the automobile comes with permanently diminished value.
The term diminished value refers to when a vehicle is involved in an accident and gets damaged physically, structurally and cosmetically. Even if the vehicle is repaired and restored to its original status, it cannot fetch as much as it would if it had not been involved in an accident. What it was worth before the car crash and what it is worth now after the crash, the difference is the diminished value.
The diminished value actually exists in towns like Austin and Fort Worth. Towns such as Austin require full disclosure of accidents which occurs to a vehicle because some buyers would not like to purchase cars that have been involved in an accident. However, if it has been involved in one, then automatically it will fetch less cash.
Firms like Hansen Price use the following three types of diminished value …