How to Calculate the Diminished Value of a Wrecked Car

The value of your wrecked car will depend on how much it was worth before the wreck and how much damage was done.

It may be difficult to determine the value of a wrecked car. Wrecked car values are determined partially by the value of the car before it was wrecked, partially by the severity of the damage, the cost of repairs in relation to the damage and even the value of the vehicle as parts or scrap metal. Calculating the value of your wrecked car can help you decide if it is worth your time to repair the vehicle or if you would be better off getting rid of the car and putting the money from its sale toward a new vehicle.

Instructions

1. Calculate the value of the car prior to the wreck. You can do this by looking up the car on any of several car value websites, including Kelley Blue Book, Edmunds and NADA. Input the information that was correct for the car prior to the wreck to get a general ballpark value for your car.

2. Determine the severity of the damage caused by the wreck. The best way to do this will be to take it to a automotive repair shop and get an estimate for the cost of repairs to your car. You may want to get multiple estimates from several different repair shops and average them together to get the most accurate estimate for your damages.

3. Subtract the cost of repair from the pre-accident value of the car to get the diminished value of the car.

   For example, say you owned a Ford Taurus with a value of $3,000 before an accident which caused approximately $1,500 in damage to the car. The diminished value of your car will be no more than $1,500.

   If the cost of the repairs comes close to or exceeds the value of the car, the car is normally considered to be totaled or to have no value except as parts or scrap metal. Vehicles that are sold as parts or scrap metal are commonly valued between $50 and $250, depending on the vehicle.

Tips & Warnings

• Even after your car has been repaired, its value will still be slightly less than it was before it was wrecked.

References

• Auto Loss: Total Loss Appraisals and Fair Market Value Appraisals
• Brauns Law: Handling Your Own Property Damage Claim
• BankRate: Car wrecked? 'Diminished value' may be your loss

Resources

• Kelley Blue Book
• Edmunds
• NADA