Diminished Value from the Dealer’s Perspective: The Untold Story
When it comes to diminished value claims, the dealer’s perspective is often overlooked or misunderstood. Clients frequently inform us that specific dealerships are reluctant to provide diminished value figures. Here’s why, and how we’ve been able to overcome that barrier.
Building Trust with Dealerships
Over the past decade, we have worked diligently to cultivate strong relationships with used car managers across multiple dealerships. We’ve managed to create a symbiotic relationship where we relieve them of a responsibility they’d rather not handle, thereby fostering a network of cooperation.
The Power of AI and Data Analysis
We have invested in advanced AI software that analyzes dealership data for accurate appraisals. With 13 years of comprehensive data, dealers are more willing to cooperate with us as the information is aggregated and anonymized, reducing the risk of any one manager being subpoenaed.
Protecting Dealers from Legal Hassles
Our methodical approach shifts the risk from individual dealerships to our appraisal company. The data we collect from 3 to 5 different dealerships is averaged out, thus making it easier for the insurance defense attorney to focus on us, rather than subpoenaing multiple managers.
Inherent Diminished Value: A Time-Saver for Dealers
Our appraisals focus mainly on inherent diminished value, which measures the perceived decrease in a vehicle’s value due to its damage history. This saves the used car managers time by providing a generalized assessment rather than a detailed vehicle evaluation.
The Real-World Economics of Diminished Value
Insurance adjusters often claim that dealers inflate depreciation assessments. However, it’s in the dealer’s interest to give a fair quote. They want to incentivize trade-ins, and inflated diminished value figures would only undermine that goal.
The Harsh Reality of Severe Damage
Contrary to some beliefs, severe vehicle damage isn’t a grey area; it’s a red flag for dealers. The fear of liability, coupled with the challenge of selling a severely damaged car, usually leads to significant depreciation.
Conclusion: A Mutually Beneficial Relationship
Through years of experience, we’ve found that most used car managers are receptive to working with us. They understand the mutual benefits: we shoulder a burden they’d prefer to avoid, while they provide invaluable data that helps us make accurate appraisals.
By demystifying the role of dealerships in diminished value appraisals, we offer our clients a comprehensive understanding that improves their chances of a successful claim.