Diminished Value: Repair Level Five
Diminished Value or Diminution in Value is defined as that portion of a damaged vehicle’s Pre-Loss Value that cannot be restored through the repair process.
Poorly Repaired – Unsafe to Drive
This vehicle is poorly repaired, is below “Sub-standard and Cut-Rate.” This vehicle may be, “Poorly Repaired- Unsafe to Drive”. Repairers followed no factory recommended repair data.
For this repair, the insurance company specified imitation parts and the repairer agreed to use them without protest in the repair of the subject vehicle. These parts have been determined by experts and the courts to be inferior to OEM parts in many respects. Imitation parts WILL void factory warranties on the imitation component itself and on all other related components that attach or may fail due to the imitation part. Imitation parts have no effective recall system, should the manufacturer discover a design or material defect after installation. Imitation parts have been found not to be of like kind and quality in fit, finish, warranty and performance; as a result, using them may cause additional loss of value and additional potential safety hazards.
Used Salvage Parts were installed that were below the visible grade of the existing vehicle. Their source and history were not determined. Basic repair material requirements were disregarded and are missing. Even a non-automotive expert can clearly tell that the vehicle was damaged and has been poorly repaired. An expert would conclude that numerous major and minor flaws remain. Clear evidence of the repair process exists. There is visible defective structural and body repairs, missing paint on multiple surfaces, and easily identifiable bodywork exists. This vehicle may have safely and mechanical issues the make it unsafe to drive and a risk to others on the highway.
The paintwork is visibly flawed and clearly has not been restored to factory specification or appearance. There are obvious differences in color match, texture, and/or material quality. There is no conclusive evidence that the paint will age and wear in a manner undetectable from that on undamaged parts of the vehicle. The diminished value would be severe and include inherent loss, insurance induced DV from limiting repairs and/or, selecting or directing the body shop. The body shop may have been directed to alter the repair method by the vehicle owner for a financial motive. A deductible may have been saved or other reason. There is great potential for fraud, negligence is typically present. The potential for re-repair is limited cost-wise by the value of the vehicle. It may not be practicable to re-repair the vehicle and total loss considered.
If the vehicle was damaged structurally:
- There exists no documentation or evidence that any factory recommended repair procedures specifications were followed. No documentation exists to prove the approved methodology was followed. NO documentation exists that a third party provider eg. Chief or Continental Frame or Kansas Jack Dimension Service may have been used to reference dimensions. No specifications were referenced for structural repair or replacement needs. Replacement of structural components disregarded, as visible damage still exists. The integrity of HLSA, Composites or Alloys was not addressed. No after-repair tear down or testing has been performed.
- There is evidence of obvious variance in the panel gaps and alignment. Doors and bonnets may not open and close properly. It is not known with any degree of certainty that the vehicle will perform in a subsequent crash in a predictable manner as originally intended.
- If the vehicle has a separate steel frame the vehicle’s frame is still damaged and visible to a buyer or expert. The damage extended past the suspension area at either end of the vehicle. The drive train of the vehicle may have sustained compression damage. Un-documented heat may have been applied to the frame during the repair. The frame may have a twist, buckle, kink, diamond, corrosion or integrity issue where performance may be affected. A post-repair inspection would reveal frame damage is present. That the attached body structure has visible flaws and defects.
- The vehicle has evidence of kinetic damage caused by the impact in areas such as mountings, mechanical or structural components. As a result, there is documented proof that all accident-related damage has NOT been identified or repaired.
- Some areas of the vehicle revealed it’s had prior damage that may overlap impacts at different times. The vehicle is clearly distinguishable from an undamaged vehicle of the exact same make, year and model. In the opinion of most informed buyers, used and new cars dealers it would definitely be determined the vehicle was damaged. There is risk all of the factory warranties may not be intact.
- This vehicle is not in a pre-loss condition relative to other makes or models of a similar year. There is credible evidence that this vehicle will not function, perform and wear in a manner similar to that of an undamaged vehicle of the same year, make and model. Welded seams, joints and spot-welds are visibly damaged and the repair sites lack evidence of anti-corrosion coatings. There exists no documented proof internal and external coatings were applied.
- The paintwork has not been restored to factory specifications; there is an obvious difference between the original paintwork and that of the repaired areas. This difference can be a color mismatch, texture, or material quality. It is determined that there is a distinguished difference between the repair areas paint and that on the undamaged portion of the vehicle.
- The diminished value would be severe.
This vehicle will not function, perform or wear in a manner relative to that of an undamaged vehicle of the same year, make and model. It is unpredictable as to what may happen in a 10-20 mile per hour crash. Most vehicles are not built or crash safety tested above 20 MPH with the intention of repairing them.
** Imitation parts: Have been determined by the courts to be inferior to OEM parts in many respects. Imitation parts void factory warranties on the imitation component itself and on all other related-connected components that fail due to the presence of the imitation part. Imitation parts have no effective recall system, should the manufacturer discover a design or material defect after installation. Imitation parts have been found NOT to be of like kind and quality in fit, finish, warranty and performance; as a result, using them may cause additional loss of value and additional potential safety hazards. Reconditioned or re-manufactured are also considered to be inferior unless sponsored by the OEM manufacturer.