How to Calculate Diminished Value

Diminished Value Calculator

This calculator helps you estimate the diminished value of your vehicle after an accident where it was repaired. Diminished value is the loss in a car's market value due to it being in a collision and undergoing repairs.

function calculateDiminishedValue() { var marketValueBeforeAccident = parseFloat(document.getElementById("marketValueBeforeAccident").value); var repairCost = parseFloat(document.getElementById("repairCost").value); var vehicleAgeMonths = parseFloat(document.getElementById("vehicleAgeMonths").value); var mileageAtAccident = parseFloat(document.getElementById("mileageAtAccident").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(marketValueBeforeAccident) || isNaN(repairCost) || isNaN(vehicleAgeMonths) || isNaN(mileageAtAccident) || marketValueBeforeAccident <= 0 || repairCost <= 0 || vehicleAgeMonths <= 0 || mileageAtAccident <= 0) { resultDiv.innerHTML = "Please enter valid positive numbers for all fields."; return; } // Common method: 17c formula approximation // 1. Calculate a percentage of the vehicle's pre-accident value based on repair cost. // A common benchmark is 10% for a standard repair, but this can vary. // We'll use a simplified approach where the repair cost * percentage of market value. // For simplicity, let's assume a 50% severity for repairs relative to market value. var repairSeverityFactor = 0.50; // This is a simplified assumption, real factors are more complex. var valueLostDueToRepair = marketValueBeforeAccident * repairSeverityFactor; if (repairCost < valueLostDueToRepair) { valueLostDueToRepair = repairCost; // You can't lose more value than the repair cost itself in this simplified model. } // 2. Apply a mileage multiplier (e.g., 0.5% per 1,000 miles, up to a certain limit). // Let's use a benchmark: 1.25% reduction for every 10,000 miles on a 3-year-old car. // This is highly variable and depends on market conditions and the specific vehicle. var mileageReductionRate = 0.000125; // 0.0125% per mile, simplified var mileageFactor = 1 – (mileageAtAccident * mileageReductionRate); if (mileageFactor < 0) mileageFactor = 0; // Cannot have negative value // 3. Apply an age multiplier (e.g., 1% reduction for every year, up to a certain limit). // Let's use a benchmark: 2% reduction per year of age. var ageReductionRate = 0.02; // 2% per year var vehicleAgeYears = vehicleAgeMonths / 12; var ageFactor = 1 – (vehicleAgeYears * ageReductionRate); if (ageFactor repairCost * 0.8) { // Capping at 80% of repair cost as an upper limit estimatedDiminishedValue = repairCost * 0.8; } if (estimatedDiminishedValue > marketValueBeforeAccident * 0.2) { // Capping at 20% of market value as an upper limit estimatedDiminishedValue = marketValueBeforeAccident * 0.2; } if (estimatedDiminishedValue < 0) { estimatedDiminishedValue = 0; } resultDiv.innerHTML = "

Estimated Diminished Value:

" + "$" + estimatedDiminishedValue.toFixed(2) + "" + "Note: This is an estimation. Actual diminished value can vary significantly based on specific vehicle condition, repair quality, market demand, and the severity of the accident's impact on the vehicle's structural integrity and appearance. Consulting with a professional appraiser is recommended for an accurate assessment."; } .calculator-wrapper { font-family: sans-serif; max-width: 600px; margin: 20px auto; padding: 20px; border: 1px solid #ccc; border-radius: 8px; box-shadow: 0 2px 4px rgba(0,0,0,0.1); } .calculator-form h2 { text-align: center; margin-bottom: 15px; color: #333; } .calculator-form p { text-align: center; margin-bottom: 25px; color: #555; font-size: 0.95em; line-height: 1.5; } .form-group { margin-bottom: 15px; } .form-group label { display: block; margin-bottom: 5px; font-weight: bold; color: #444; } .form-group input[type="number"] { width: calc(100% – 12px); padding: 8px 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 1em; } .calculator-form button { width: 100%; padding: 10px; background-color: #007bff; color: white; border: none; border-radius: 4px; font-size: 1.1em; cursor: pointer; transition: background-color 0.3s ease; } .calculator-form button:hover { background-color: #0056b3; } .calculator-result { margin-top: 30px; padding: 15px; background-color: #e9ecef; border-radius: 4px; text-align: center; border: 1px solid #dee2e6; } .calculator-result h3 { margin-top: 0; color: #333; } .calculator-result p { font-size: 1.2em; color: #007bff; margin-bottom: 10px; } .calculator-result p small { color: #6c757d; font-size: 0.8em; }

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