Diminished Value Calculator:
Until now, only a select few, those who spent many thousands of dollars on software and engaged in post repair inspection, had the ability to create diminished value reports. It was an elite niche frequented by only those willing to make the invested needed to get started.
Those days are gone now. BodyShop Office includes a complex yet very easy to use DV calculator. It is part of my C.I.A. Technology. It brings diminished value calculation to everyone who wants it. With an NADA price guide and my software you can create a diminished value report in minutes.
The software focuses on inherent, or psychological DV that occurs automatically any time a vehicle is wrecked, regardless of how well the vehicle is repaired. Ask anyone if they had a choice between two vehicles, identical in every conceivable way except one car was wrecked and repaired and the other wasn't, which car would they choose to buy if they were both the same price. It's a no brainer. Start dropping the price of the repaired vehicle and you'd eventually reach a price that would entice the buyer into choosing the wrecked car over the pristine vehicle.
That discount needed to sell the wrecked car is the inherent or psychological diminished value.
The other diminished value that is due to improper or incomplete repairs requires you to write an estimate to repair it. That estimate can be included in your report.
I spent a lot of time developing the formula used to calculate DV. After talking with car sales people, used car managers, new car managers, every day average people, and studying price guides I determined there was seven different methods that could be used to figure DV. None of them worked in all situations. I then took those seven methods and weighted them depending on criteria chosen by the software user to come up with what I feel is an accurate, reasonable and fair formula.
Explain diminished value to your customers and attach a report to your invoices. Use your DV report as leverage against an insurance company's abusive tactics. Prepare reports for attorneys to use in court cases. Prepare them for your sales department so they can determine fair trade-in values. Here is a sample DV Report.